As the US economy continues to experience a long streak of relative prosperity, Americans are surprisingly reluctant to show their enthusiasm. Even though the figures show a healthy GDP, employment numbers are up, wages are growing, and consumer confidence is at an all-time high, it seems Americans are not behaving that way. So far, they aren’t spending or voting like they should be in order to clearly signal a solid market.
This phenomenon has been described as a lackluster consumer sentiment by many experts. This term is often used to describe a lack of buying activity even when the economic indicators are strong. This can be attributed to a mix of low enthusiasm and uncertainty about the current state of the economy – both of which can have a negative bearing on the long-term performance of the US economy.
The root of the problem appears to be a complex mix of factors, including a lack of clarity about the country’s political direction and associated economic policies plus a general lack of trust in the US government after the 2016 election. Many Americans may also be wondering if their current good fortune will last or if they may soon be facing a reversal of fortune.
In an attempt to understand the current sentiment, many researchers have concluded that Americans are gradually losing faith in economic institutions, corporate leadership, and even the American Dream of financial security. This could be due to the increasing complexity of the US economy or the decreased visibility of economic results as a result of fewer visible beneficiaries.
There is some hope that this situation will improve when Americans start voting in the 2020 election. It is possible that if the public gets behind a set of economic policies and politicians who are committed to the long-term management of the US economy, they will be more likely to engage in activities that generate real economic impact. For now, the challenge for the US economy is to sustain and build on the current level of economic growth despite a lack of enthusiasm for it.