Americans are responding to the economic recovery in an unusual manner, one that is very different from the traditional response to a booming economy. According to an article by Godzilla Newz, there has been sluggish spending in comparison with other economic recoveries, as well as dismal political 2020 elections turnout, with less enthusiasm when it comes to voting for either side.
These counterintuitive behaviors can be attributed to a variety of factors. To begin with, it may be the decades of economic uncertainty upon which many Americans have been surviving for years, leading to an unwillingness to trust in a potential short-term recovery. Additionally, many lower to mid-income households are faring worse in the recovery period than wealthier Americans, resulting in less spending power for the former group. Furthermore, 2020 has been especially hard-hitting year of turmoil and disruption to normal life, with the pandemic and civil unrest bringing extra stress and insecurity to the economy, all of which has changed its outlook significantly.
The article goes on to note, however, that the longer the recovery drags on, the more potential people will have to catch up financially. Economists have suggested that if the US economy continues to perform well for a sustained period, more Americans will begin to respond to the recovery.
In terms of politics, the situation post-election appears to be largely determined by a combination of factors. The article states that many voters may have been discouraged with the overall feeling of the campaigns, and were not inspired by the candidates’ platforms or ideas. Growing concerns about the effects of a Trump presidency, or worries about how Biden will handle it are likely to have had a negative effect too. Another worrying factor is that the campaigns did not spend enough on advertisements, leading to lesser enthusiasm for voting from an already overwhelmed electorate.
Ultimately, these are unusual times and America’s economic and political landscape is anything but rosy. Economic recovery may take more time than initially expected, while political uncertainty will continue and possibly worsen until a new administration takes shape. It is clear that although economic conditions are better than before, they are not enough to generate the kind of behavior one might expect from a traditional recovery.