Economic data show a strong resilient economy. However, most people’s perception of their economic outlook is gloomy and I don’t blame them. Statistics and numbers in a book don’t reflect what is being experienced on the ground.
People’s experience doesn’t transition into less hardship because say the inflation numbers move down on a monthly basis. Consumer confidence or business sentiment indices rely on surveys and opinions. These are subjective and can be influenced by factors like media coverage or public perception.
I don’t care about economic data. All I really care about is my personal financial situation. In this part of the world where I live and work, growth is slow, cost of living is high and wages have not kept pace with prices. Like other consumers, I really hate inflation. It’s a problem when people need something that they can’t afford.
The size of the product I buy at the grocery store is smaller but has the same tagged price. Some of my favorite snacks went up a dollar a few weeks ago. People might use credit cards or take on more debt to maintain their standard of living or keep up with the lifestyles of others, even in the face of higher prices. This can create a situation where individuals are still making purchases but are accumulating debt in the process.
It is no secret that the cost of education has skyrocketed on many metrics which is part of a broader crisis enveloping higher education in this part of the world. “Can you afford to buy your own house today?” The cost of housing is another problem.
Home ownership is particularly difficult for younger buyers such as millennials. Not everybody is born with a silver spoon. They are already saddled with more debt than they can afford to pay with mediocre wages.
Higher interest rates are a problem too making it more expensive for borrowers to service their loans. On another lighter note, higher interest rates are good for savers. For the first time in many years, you can find decent yields on savings and fixed deposit accounts.
The employment picture is misleading as it has been hard for young and middle-aged people to find decent jobs. Others left the traditional workforce and turned to new technologies to create new income streams. Those with stable jobs are expected to work even after retirement.
Damn it! I know some people who never made it in their career not because they lacked skills or an education. They struggled in a political world infested with racism and discrimination under the guise of populism. Elsewhere, some people are stuck in a cocoon and are too lazy to learn or understand anything. This is not funny at all.
I don’t like to comment about politics. I have to watch my blood pressure these days, so I will stick to economics in this post. No matter what the official numbers tell you about the economy, the bottom line at the end of the day is it’s all about our personal economy.