In a recorded April 2026 discussion, Krugman and former Biden adviser Bernstein analyzed why negative public sentiment endures despite strong GDP growth and falling inflation since the pandemic.
They argue that the sharp rise in price levels during 2021-2022, compounded by subsequent shocks like tariffs, wars, and housing costs, left lasting impacts on consumer perceptions and affordability.
The economists highlight that wage gains and policy efforts were often overshadowed by price memories, with political polarization and social media amplifying dissatisfaction, raising concerns about future economic crises and policy responses.
Is our memory of pre-2020 prices the real reason for economic gloom?
How will rising global tensions and new tariffs impact your household budget?
Why do we feel poorer even when economic data says we are not?
Are traditional economic models now obsolete in a post-pandemic world?
Could a computer 'super simulator' predict the next economic crisis?
Can government affordability plans work without fueling more price hikes?