What makes an economy objectively “good”? People seem to complain about the economy being “bad” all the time but who/what determines if it’s truly “good” or “bad”?
In: Economics
Generally the factors described in prior comments paint a good picture, growth and low unemployment are felt as good and high inflation is seen as bad.
The state of the economy now is:
-the economy is growing, but slowly
-unemployment is low
-inflation is high, and was recently much higher
However
-inflation adjusted (real) wages are increasing (this is good), slowly, that is to say, wages are growing faster than prices, but only barely and only in aggregate
This all has the psychological effect of prosperity not really improving much (even though it is) over the short term and most people feel poorer (even though they aren’t) because they remember a few years ago when prices were lower.
People would feel much different if the economy and wages were growing faster. 4-5% growth feels like dynamic and exciting prosperity, while 1-2% growth feels kinda slow/static
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