Source: Paul Krugman
by Paul Krugman
“I noted last week that the Biden era vibecession — people feeling bad about an economy that looked good by standard measures — has persisted under Trump. In fact, public perceptions of the economy appear to be plumbing new depths. Honestly, I’m surprised. One factor in poor economic sentiment under Biden was partisanship. People’s reported perception of the economy is strongly affected by whether their preferred party is in power …. This is true for both parties, but historically Republicans have tended to cheer harder and boo louder than Democrats. So other things equal we would have expected average sentiment to improve under Trump II. Now, things aren’t equal. Objectively, the economy is worse in important ways than it was a year ago. Still, the extent of the plunge in perceptions is remarkable.” (11/20/25)