Reality check: What's up with the economy? The economy is the number one issue for voters going to the ballot box this November, and polls say most Americans, when asked about the economy, are pessimistic. However, according to many economic indicators, the economy is actually performing quite well. So, why the disparity?

Correspondent David Pogue conducted a detailed discussion with economics professor Justin Wolfers to delve into what feeds people's misperceptions of America’s post-pandemic economy. Despite the pessimism reflected in public opinion polls, various economic metrics suggest a strong performance. For instance, the unemployment rate is at a historic low, and consumer spending remains robust.

Additionally, stock markets have shown a consistent upward trend, and GDP growth rates indicate a recovering and expanding economy. These optimistic indicators seem to contradict the prevalent public sentiment of economic doom and gloom. Economics professor Justin Wolfers explains that several factors contribute to this divergence between perception and reality.

One major factor is the lingering effects of the pandemic on people's psyche. Many individuals still face personal financial difficulties or have seen businesses in their communities shuttered. This personal experience often outweighs broader positive economic data. Furthermore, media coverage tends to highlight negative economic stories, which can shape public opinion over time.

To add to this, political rhetoric from all sides can amplify the perception of economic distress to influence voter sentiment. Another critical aspect Wolfers points out is the concept of economic inequality. While macroeconomic indicators may look positive, they might not reflect the experience of the average citizen.

Income disparity means that gains in the economy are not evenly distributed, leading to a significant portion of the population feeling left behind. This feeling of relative disadvantage can perpetuate a negative view of the economy, even if overall indicators show benefits. Ultimately, understanding the nuances behind these economic perceptions requires contextualizing both the statistical data and the human experience.

Policymakers and economists need to address these disparities not just through numbers but also through tangible improvements in individual livelihoods. Only then can the alignment of economic reality and public perception begin to improve.