Midterm voting: The gap between data and daily life
A Johns Hopkins economist explains why voters judge the economy by personal cost-of-living experiences rather than macroeconomic indicators.
By Pablo Serrano ·
Voters are heading to the polls with economic views that contradict aggregate growth data.
Alessandro Rebucci, an economics professor at Johns Hopkins Carey Business School, said this disconnect stems from how individuals perceive the cost of living. He noted that the data shows a strong economy overall, but the distribution of that wealth determines how many voters feel about the current situation.
Economists describe this divergence as a K-shaped economy. The term refers to a graph showing how high-income earners and asset owners are outperforming middle and lower-income households. Rebucci pointed out that wealthy families spend more than poorer ones, both in absolute terms and as a share of their income and total wealth.
President Donald Trump has repeatedly stated that the U.S. economy is performing well. At a rally in Las Vegas on Aug. 5, he declared, "The economy is the greatest economy we’ve ever had, by far." Recent consumer surveys suggest many voters disagree with that assessment.
Rebucci said the current tension is not unique to this cycle. Historically, the party holding power in Washington has claimed the economy is strong. He added that Americans have long lived with economic inequality.
According to Rebucci, the goal is not to eliminate inequality but to adjust the system so people can live better within it. He emphasized that voters need to believe they have a chance to move into the top 10% or top 1% of earners.
Source: Atlanta News First
