I'll venture my own anecdotal hypothesis: the problem is not Americans' objective levels of income or wealth, but their subjective sense that the future is no longer hopeful. Put a different way, that the rug has been pulled out from under the promise of the American dream.
In an absolute sense, my household is much better off than we were in 2020 (mostly on the back of new jobs). We are not struggling in any sense of the word. But we also feel that our goals have suddenly become much, much harder to achieve.
Why? Housing costs, more than anything. Over the same time period that our income increased, property values jumped 50%. Suddenly we're facing the prospect of having to save much more over a longer period of time to buy notably less than we could have a few years ago.
On top of that, our healthcare costs (premiums, copays, deductibles) are also 50% higher. Groceries are much more expensive, as are the costs of buying and maintaining car. A night on the town rarely feels worth the expense anymore.
All of this is demoralizing. As Krugman notes, my household is better off in objective terms. But my sense of hope for the future has also been seriously damaged. You might call that a "vibecession."
@ResolvedElect0ralGreen4wks4W
It’s also a little awkward when “progressives” lurch from a doom and gloom message about all the problems in society they are trying to mobilize around to a new message of cheerleading for the status quo. It feels very forced and contrived, especially in an election year.
The default progressive posture must be dour dissatisfaction and outrage at the ravages of capitalism, the obscene inequality and the non-PC jokes. So you can’t just switch on the jovial Pollyanna at a moments notice.
@ShyGovernmentDemocrat4wks4W
This is the best comment here. You've precisely nailed the cause of the apparent conundrum of why so few are particularly enthusiastic about this ostensibly great economy.
