Readers aren’t feeling optimistic about the economy. Here’s why.

Economic experts may be watching the U.S. economy with cautious optimism, but Boston.com readers aren’t yet convinced the country’s financial situation is improving. 

Inflation is still subsiding and is unlikely to return to pre-pandemic level soon, but the job market is strong, with unemployment at its lowest level since 1969, and wages are on an upswing. 

We aren’t entirely out of the woods yet — The Consumer Price Index hit 3.2% in July, compared with 3% in June, according to the Bureau of Labor Statistics — but given the improvements, economists are now forecasting a “soft landing,” or a slowdown in economic growth that avoids a recession. 

Despite optimism from economists and business leaders nationally and here in Massachusetts, the majority of Americans don’t believe the economy is improving. A poll conducted by CNN revealed that 51% of Americans believe we’re still in a financial downturn. Our readers told us in a recent survey that they agree. 

When asked how they felt about the current state of the economy, 76% of the 229 readers who responded to our survey said things haven’t improved. 

“It’s a mess,” said one reader. “Zero interest rates pumped the economy full of cash and created many bubbles, which have not yet popped. Look out below.”

The lack of confidence in the economy may be a reflection of dissatisfaction with personal finances. Financial anxiety is on the rise among Americans, with more people reporting their situation worsening rather than improving. Forty-one percent of Boston.com readers said they were happy with their financial situation, but those that weren’t cited housing costs, groceries, and gas prices as reasons why. 

Lisa from Billerica said her wages haven’t increased this year and she’s unsure they will next year, which has become a stressor as the cost of living climbs.  

“On the macro level, it is getting better in the U.S., but on a micro level, it’s been tougher. Housing is ridiculous. If you are on a fixed income, that is really tough to take. Groceries, going out, everything costs so much more,” she said. “While the job market is supposedly ‘hot’ it’s only for specific sectors, not across the board. To be honest, my ‘retirement’ looks bleak as well. [Ten] more years to go and my 401K is nowhere near where it needs to be for me to actually retire. It’s depressing.”

While President Biden and his administration have touted the successes of “Bidenomics,” many readers are resistant to any politicians taking a victory lap over the economy.

“We’re on an unsustainable path to a recession and the Fed is leading us there on purpose. However, this isn’t entirely the Fed’s fault. Bidenomics led to record government spending that will take years to reign in. The old saying ‘there’s no free lunch’ is as true now as it was when it was first spoken,” John from Hanover told Boston.com.

Below you’ll find more responses from readers sharing how they feel about the economy broadly and how it’s impacting their own finances. 

Some responses have been edited for length or clarity.

Do you feel optimistic about the economy?

No

“I am completely stressed about the economy. This gloom and doom is not because of the media, it is because of what I am observing around me. The increase in homelessness and crime due to desperation, and the cost of healthy food are just some of the things we all are witnessing. I have a relatively decent job in healthcare at a large academic institution in Boston. I always looked at healthcare as a safe occupation as everyone needs healthcare at some point in their life but watching the Worker Adjustment and Retraining Act (WARN) report weekly and seeing huge layoffs at our top healthcare institutions is incredibly concerning. The stress keeps me up at night.” — Kate D, Everett

“Forced ‘retirement’ due to the pandemic has limited my spending, traveling, and charitable donations. No one could have predicted the damage done by Covid, financially and emotionally. Also, the housing situation is keeping more people from making the changes they might have planned. Personally, I need to stay in place even though I’d rather downsize. I can’t justify the expense and can’t find anything suitable in my price range.” — Sam, Cambridge

“Town taxes are out of control. Affordability starts at the local level and constant re-evaluations combined by 2 1/2 tax increases will hurt homeowners more than any 7% mortgage.” — Scott H., Attleboro

“I think in Massachusetts we are fortunate to have better wages than most other areas of the country so we are somewhat numb to the fact that everything costs more and it’s having a ripple effect. The economy is not better, and I fear it may get worse before it gets better.” — Rick, Hopkinton

“Everything is so expensive. It’s getting impossible to save money. Inflation may be down currently, but prices are still way higher than they were a couple years ago. Interest rates keep rising with no end in sight making borrowing impossible and business growth stagnant. The government needs to stop wasteful spending, and stop crippling the energy sector.” — Bill, Brighton

“We’ve been walking a tightrope between recession and inflation for almost two years now. It makes it nearly impossible to make investments as a small business owner, not knowing when the economy will truly crash and how to prepare. Additionally, costs of everything are way up — especially wages — and earnings for our business are flat to down. It’s hard not to blame our leadership in Washington (frivolous spending) and the Fed for failing to nip inflation in the bud as aggressively as they should.” — Jay, Boston

“Prices of basics like gas and food are way too high, especially for families with children. We spend hundreds more per month than we did just a few years ago.” — Kristina, Framingham

Yes

“I am happy about all the jobs and increased pay, everything is looking good. Don’t understand why people are bashing Biden. I think he has done a great job.” — Michael L., Mansfield

“Our economy is strong compared to other nations throughout Europe and the world. We are fortunate to have Biden and the Federal Reserve save us from a Recession.” — Philip W., Boston

“The economy is doing pretty well thanks to Biden. Inflation is down (near 3.2%) and unemployment is at record lows. Nevertheless, there remains too much negative news and information bias. Much of it is driven by politics (often from the Trumpian Right) working overtime to divide us. But optimism is a choice and a reality for winners who don’t breathe in every negative trope about inflation, spending, or debt. Especially when it involves Joe Biden’s undisputed achievements.” — Philip S., Colo.

“People feel bad about the economy because that’s what the media, especially right-wing media, tells them. However, if you actually look at the numbers, you will find there is, and has been for a long time, a disconnect between actual performance (the economy is pretty good) and the narrative (the economy is bad). This does a disservice to all and makes for the potential for bad policymaking. The bias foolishness must one day stop.” — Roy, Methuen

“The Fed, under President Biden’s outstanding leadership, has expertly threaded the needle of blunting ‘Trumpflation’ and keeping us out of what was supposed to be a certain recession.” — Carl K., Brookline

“Post-COVID inflation is abating. Unemployment is low. The economy is strong. Stay the course and mortgage rates will creep back down, too (though maybe not to the historically low rates we’ve grown to take for granted).” — E.J., Maynard

Boston.com occasionally interacts with readers by conducting informal polls and surveys. These results should be read as an unscientific gauge of readers’ opinion.

Zipporah Osei

Audience Engagement Editor

Zipporah Osei is an audience engagement editor for Boston.com, where she connects with readers on site and across social media.

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