The U.S. economy has nearly recovered. Now someone has to convince Americans. Nearly half think the United States is still in recession, according to a recent Wall Street Journal poll. Some 76 percent don’t think their children’s generation will have a better life than they did. Americans are right to think they are worse off: Even if they have recovered financially, they have become aware that the economy is riskier than it used to be. They might never bounce back from that.
Economic well-being is not limited to wealth, earnings, and employment; security matters, too. All else being equal, a riskier environment is worse, economically speaking. Financial markets may be less volatile, but structural changes in the economy have increased risk for most Americans’ largest asset: future earnings.
