The Happiness Gap: Why Good Economic Numbers Can't Fix Affordability

The Debate

There's a strange contradiction at the heart of the American economy right now. The headline numbers look fine — GDP is growing, unemployment is historically low, and the stock market keeps climbing. Yet consumer sentiment is in the dumps. People feel lousy. The question is: why?

Goldman Sachs recently offered a diagnosis that's equal parts fascinating and unsettling. In a note reported by CNBC, economist Joseph Briggs suggested that "broader pessimism in society" — essentially,...