U.S. Economy Outperforms Northern Neighbor, Americans Express Pessimistic Mood

The U.S. economy is performing better than public perceptions suggest. There are signs of a strong economic recovery and indications that prosperity might be more widely shared. The U.S. economy has outperformed its northern neighbor due to factors such as robust fiscal support, a less indebted consumer, and improved productivity. Despite the strength of the economy, Americans are expressing a pessimistic mood, which raises questions about the reasons behind this sentiment. GDP and jobs are above their pre-pandemic levels, inflation is decreasing, real wages have rebounded, and real wealth is increasing. The economic pessimism could be attributed to a phenomenon called 'referred pain.'