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
If you are a Leftist, the economy is never good because acknowledging as much would undermine the core narrative about the economic system being fundamentally unjust, unsound, in perpetual crisis and hurtling toward cataclysm.
If you are Right-wing, the economy is never good when the occupant of the White House isn’t Right-wing. When the president is on your team, the economy is great, regardless of the facts on the ground.
Getting handed a bunch of free Covid money that dramatically boosts your discretionary income is apparently the new normal and anything that isn’t that is an awful economy.
Jobs are plentiful and well paying.
Housing and medical care are the core problems. Beyond that the economy is good by any historical measure.
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