I’ve really never experienced something like this in my life and talking to my older family members who were around in 08 and the 1980s recession, it’s crazy to see that they all agree right now it feels similar to those recessions, despite asset values being ludicrously high.
My dad was telling me that in 08, he saw his IRA collapse practically overnight, and while that was hard, everything that came after, especially the cost of living and keeping the family fed was worse. Now he is retired and has rental properties so he is doing better, but he was saying it’s starting to feel like it did following the 08 crash.
When I turned 18 in 2019, I stayed in one of my dad’s properties and paid him the market rate at the time. Obviously I had no degree so I wasn’t making much, but despite that and paying for my car, phone, internet, utilities, etc, I feel like I still have more money left over then than now. I make $17/hr more now. Covid definitely felt like it made everything a little worse, but for me at least, 2024 and 2025 were BRUTAL.
Anyways I’ve done a lot of rambling, but I’d appreciate it if someone could explain why everything feels so bad despite looking good on a macro level. I’d also be curious if there’s any periods of history where we saw anything like this before. Thanks
Can someone explain why despite most metrics showing all is well, the economy FEELS horrible?
byu/NotACommie24 ineconomy
Posted by NotACommie24
3 Comments
Inflation has been high for 4 years and has started to spike again. It’s why 2% has historically been the inflation target. Coats on things like healthcare and childcare continue to skyrocket.
Inflation effects equity prices too, also K shaped economies can cover for a recessed lower-middle class with the consumption and production of the upper class. There’s a kind of labor shrinkflation happening as well where productivity increases are making up for the GDP hit from overall labor numbers as well. None of this is a bug. It’s a feature for the wealthy.
It feels bad for your situation and location. Not necessarily true for everyone else. I see issues with energy prices, inflation, etc. but my wealth and income have continued to grow.
Once you have equity built up and can weather a storm you’ll realize that you use those moments to pick up assets cheap and watch them grow when times are good. Don’t let your feelings dictate finances. If I had believed all the doom and gloom in 08′ and gave up I’d be much worse off now.