US Economy Is Booming, but Many Americans Say They Feel Little of It

The United States economy has been on the upswing in 2024 - a wave of new jobs, robust consumer spending, lower interest rates, falling inflation and record Wall Street highs have made it, in the words of many commentators, "the envy of the world". But a survey of dozens of Americans from across the country found that many feel very little of that strength, with the cost of living still outpacing their incomes.

Macro strength, micro strain

While some respondents expressed optimism about stabilising inflation and reported doing well, many said inflation continued to be financially crippling, with incomes not keeping up with soaring costs for housing, food, childcare, insurance, healthcare and fuel. Several noted that prices had not actually come down, only stopped rising as fast as before. Even those who felt the economy was doing well complained of the exorbitant cost of living, and said most people still cannot enjoy the same level of financial security they had before the pandemic.

Winners and losers

The picture split along familiar lines. Retirees and people on fixed incomes said the new lower interest rates were bad news, because interest on savings is dropping. Those holding stock-market investments, by contrast, felt positive, citing healthy gains and investment income. Respondents in cities including New York, Miami and Milwaukee pointed to rising homelessness and argued that the trickle-down model was broken. Views on responsibility were divided, with some blaming the current administration's pandemic-era interventions and others blaming the previous administration and the wider structural system.

• New jobs, lower rates, falling inflation and record market highs in 2024
• Many households say incomes are not keeping up with the cost of living
• Retirees on fixed incomes are hurt by lower interest rates on savings
• Stock-market investors report healthy gains and rising investment income
• Respondents describe being priced out of housing, communities and retirement savings

Why it matters

The gap between a strong headline economy and strained household budgets helps explain why economic optimism in the data has not translated into broad public confidence. For policymakers, the challenge is not only to keep growth and inflation on track, but to make that strength visible in wages, housing costs and everyday purchasing power.