PESSIMISM ABOUT A STRONG ECONOMY.

The article discusses the disconnect between the positive state of the United States economy and the public's perception of it. Several explanations are offered, including measurement errors in economic indicators, partisan influences on survey results, media focus on negative news, and the lag between perception and reality. The article argues that despite higher prices, US households' purchasing power has increased in real terms. It concludes that the lag hypothesis is the most persuasive explanation for negative perceptions and suggests that Americans are starting to realize that the economy is improving. [Extracted from the article]