US 'Boomcession': GDP Growth Amidst Shrinking Paychecks
The U.S. economy is experiencing a phenomenon dubbed the 'boomcession,' where macroeconomic indicators like GDP growth and low unemployment coexist with stagnant real wages and rising costs of living. In the last quarter, GDP grew by 1.5%, and unemployment stands at 4.1%, yet most Americans report feeling worse off than before the pandemic. Real wages have barely increased, while prices for goods, utilities, and housing continue to climb. This disconnect between official economic data and public sentiment highlights the challenges facing households despite overall economic expansion.
Key facts
- U.S. GDP grew 1.5% last quarter.
- Unemployment rate is 4.1%.
- Real wages have barely budged.
- Prices, utility bills, and housing costs keep climbing.
- Most Americans say they feel worse off than before the pandemic.
- The term 'boomcession' describes the combination of economic growth and recession-like sentiment.
- The economy is not in a recession by textbook measures.
Entities
Locations
- United States
Sources
- Quartz —