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100 sats \ 6 replies \ @grayruby 2h \ on: America is richer than ever. Why is it so unhappy? econ
Since 1996, America’s median household income (adjusted for inflation) has risen by 26 percent, enabling us to afford more flights, smartphones, and Gordita Supremes than ever before. And yet, over that same period, the share of Americans who described themselves as “not too happy” in the General Social Survey rose by 9 percentage points, while the segment calling themselves “very happy” shrank by more than 9.4 points.
Meanwhile, measures of Americans’ economic confidence and consumer sentiment both declined. And in 2025, the percentage of Americans who were “very satisfied” with their personal lives hit an all-time low in Gallup’s polling.
This disconnect between America’s rising prosperity and sagging spirits has grown more conspicuous in recent years. Since the middle of 2023 — when inflation returned to normal levels following the post-pandemic price spike — Americans’ real wages and net worths have ticked up. But the public’s mood has scarcely improved.
Yeah maybe the way wealth and inflation are being measured are total bullshit.
It’s not really that, i think! I think @Undisciplined nailed it when he talked about prosperity definition.
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Agreed but I don't think I am wrong here. People's largest monthly expenses- housing, healthcare, education, healthy food have all gone up in price much faster than inflation. So while measured in fiat sure your income and paper wealth have increased but your purchasing power for the goods you need and want most has not, which is why people don't feel prosperous.
Even if we talk about people who have assets like real estate and stocks these are not outpacing money supply expansion thus even though you may be making more income, your share of the pie is shrinking.
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Declining product quality is the intensive margin of shrinkflation.
The cost of maintaining the same quality of life is outpacing inflation estimates.
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Or maybe wealth doesn't lead to happiness
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Properly defined, it seems like it has to.
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Beyond a certain level it doesn't.
This is well established.
Add in the huge increase in inequality and 'the median' is suddenly not as representative as it once was.
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