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Before the pandemic, a number of variables were statistically significant indicators for consumer sentiment in our model; in particular, the most salient variables appear to be vehicle sales, gas prices, median household income, the federal funds effective rate, personal savings and household expenditures (excluding food and energy).

surprisingly, our pre-pandemic model didn't find a notable relationship between housing prices and consumer sentiment

All this taken together meant Americans were flush with cash but had nowhere to spend it. So despite the fact that the savings rate went way up, consumers still weren't feeling positively about the economy — contrary to the relationship between these two variables we saw in the decades before the pandemic.

Fast forward to 2024, and the personal savings rate has dropped to one of its lowest levels ever (the only time the savings rate was lower was in the years surrounding the Great Recession)

during and after the pandemic, Americans saw some of the highest rates of inflation the country has had in decades, and in a very short period of time. These sudden spikes naturally shocked many people who had been blissfully enjoying slow, steady price growth their entire adult lives. And it has taken a while for that shock to wear off, even as inflation has cre

the numbers align with our intuitive sense of how consumers process suddenly having their grocery store bill jump, as well as the findings from our model. In simple terms: Even if inflation is getting better, Americans aren't done being ticked off that it was bad to begin with.

During the pandemic, the personal savings rate soared. In April 2020, the metric was nearly double its previous high, recorded in May 1975.

However, in our post-pandemic data, when we examined how correlated consumer sentiment was with each indicator we considered, consumer sentiment and median housing prices had the strongest correlation of all****** (a negative one, meaning higher prices were associated with lower consumer sentiment)

"Right before the pandemic, the typical average transaction price was around $38,000 for a new car. By 2023, it was $48,000," Schirmer said. This could all be contributing to the break in the relationship between car sales and sentiment, he noted. Basically, people might be buying cars, but they aren't necessarily happy about it.

That's true even if a family has been able to save enough for a down payment, already a difficult task when rents remain high as well. Fewer people are able to cover their current housing costs while saving enough to make a down payment.

Low-income households are still the most likely to be burdened with high rents, but they're not the only ones affected anymore. High rents have also begun to affect those at middle-income levels as well.

In short, there was already a housing affordability crisis before the pandemic. Now it's worse, locking a wider array of people, at higher and higher income levels, out of the home-buying market

People who are renting but want to buy are stuck. People who live in starter homes and want to move to bigger homes are stuck. The conditions have frustrated a fundamental element of the American dream

In our pre-pandemic model, total vehicle sales had a strong positive relationship with consumer sentiment: If people were buying cars, you could pretty reasonably bet that they felt good about the economy. This feels intuitive — who buys a car if they think the economy

Cox Automotive also tracks vehicle affordability by calculating the estimated number of weeks' worth of median income needed to purchase the average new vehicle, and while that number has improved over the last two years, it remains high compared to pre-pandemic levels. In April, the most recent month with data, it took 37.7 weeks of median income to purchase a car, compared with fewer than 35 weeks at the end of 2019.

during the pandemic, low interest rates, high savings rates and changes in working patterns — namely, many workers' newfound ability to work from home — helped overheat the homebuying market, and buyers ran headlong into an enduring supply shortage. There simply weren't enough houses to buy, which drove up the costs of the ones that were for sale.

Inspired by our model of economic indicators and sentiment from 1987 to 2019, we tried to train a similar linear regression model on the same data from 2021 to 2024 to more directly compare how things changed after the pandemic. While we were able to get a pretty good fit for this post-pandemic model,******* something interesting happened: Not a single variable showed up as a statistically significant predictor of consumer sentiment.

This suggests there's something much more complicated going on behind the scenes: Interactions between these variables are probably driving the prediction, and there's too much noise in this small post-pandemic data set for the model to disentangle i

Changes in the kinds of purchases we've discussed — homes, cars and everyday items like groceries — have fundamentally shifted the way Americans view how affordable their lives are and how they measure their quality of life.

Even though some indicators may be improving, Americans are simply weighing the factors differently than they used to, and that gives folks more than enough reason to have the economic blues.

easy money. In an eye-opening new book, “What Went Wrong With Capitalism,” he makes a convincing case.

“When the price of borrowing money is zero,” Sharma told me this week, “the price of everything else goes bonkers.”

To take just one example: In 2010, as the era of ultralow and even negative interest rates was getting started, the median sale price for a house in the United States hovered around $220,000. By the start of this year, it was more than $420,000.

Nowhere has inflation (in the broad sense of the term) been more evident than in global financial markets. In 1980 they were worth a total of $12 trillion — equal to the size of the global economy at the time. After the pandemic, Sharma noted, those markets were worth $390 trillion, or around four times the world’s total gross domestic product.

But the worst hit is to capitalism itself: a pervasive and well-founded sense that the system is broken and rigged, particularly against the poor and the young. “A generation ago, it took the typical young family three years to save up to the down payment on a home,” Sharma observes in the book. “By 2019, thanks to no return on savings, it was taking 19 years.”

First, there was inflation in real and financial assets, followed by inflation in consumer prices, followed by higher financing costs as interest rates have risen to fight inflation

For wealthier Americans who own assets or had locked in low-interest mortgages, this hasn’t been a bad thing. But for Americans who rely heavily on credit, it’s been devastating.

Since investors “can’t make anything on government bonds when those yields are near zero,” he said, “they take bigger risks, buying assets that promise higher returns, from fine art to high-yield debt of zombie firms, which earn too little to make even interest payments and survive by taking on new debt.”

The hit to the overall economy comes in other forms, too: inefficient markets that no longer deploy money carefully to their most productive uses, large corporations swallowing smaller competitors and deploying lobbyists to bend government rules in their favor, the collapse of prudential economic practices.

“The most successful investment strategy of the 2010s,” Sharma writes, citing the podcaster Joshua Brown, “would have been to buy the most expensive tech stocks and then buy more as they rose in price and valuation.”

In theory, easy money should have broad benefits for regular people, from employees with 401(k)s to consumers taking out cheap mortgages. In practice, it has destroyed much of what used to make capitalism an engine of middle-class prosperity in favor of the old and very rich.

The social consequence of this is rage; the political consequence is populism.

“He promised to deconstruct the administrative state but ended up adding new rules at the same pace as his predecessor — 3,000 a year,” Sharma said of Trump. “His exercise of presidential authority to personal ends shattered historic precedents and did more to expand than restrict the scope of government. For all their policy differences, both leading U.S. candidates are committed and fearless statists, not friends of competitive capitalism.”

We are wandering in fog. And the precipice is closer than we think.

They also claim that OpenAI has used hardball tactics to prevent workers from voicing their concerns about the technology, including restrictive nondisparagement agreements that departing employees were asked to sign.

“OpenAI is really excited about building A.G.I., and they are recklessly racing to be the first there,” said Daniel Kokotajlo, a former researcher in OpenAI’s governance division and one of the group’s organizers.

Other members include William Saunders, a research engineer who left OpenAI in February, and three other former OpenAI employees: Carroll Wainwright, Jacob Hilton and Daniel Ziegler. Several current OpenAI employees endorsed the letter anonymously because they feared retaliation from the company,

At OpenAI, Mr. Kokotajlo saw that even though the company had safety protocols in place — including a joint effort with Microsoft known as the “deployment safety board,” which was supposed to review new models for major risks before they were publicly released — they rarely seemed to slow anything down.

So was the departure of Dr. Leike, who along with Dr. Sutskever had led OpenAI’s “superalignment” team, which focused on managing the risks of powerful A.I. models. In a series of public posts announcing his departure, Dr. Leike said he believed that “safety culture and processes have taken a back seat to shiny products.”

“When I signed up for OpenAI, I did not sign up for this attitude of ‘Let’s put things out into the world and see what happens and fix them afterward,’” Mr. Saunders said.

Mr. Kokotajlo, 31, joined OpenAI in 2022 as a governance researcher and was asked to forecast A.I. progress. He was not, to put it mildly, optimistic.In his previous job at an A.I. safety organization, he predicted that A.G.I. might arrive in 2050. But after seeing how quickly A.I. was improving, he shortened his timelines. Now he believes there is a 50 percent chance that A.G.I. will arrive by 2027 — in just three years.

He also believes that the probability that advanced A.I. will destroy or catastrophically harm humanity — a grim statistic often shortened to “p(doom)” in A.I. circles — is 70 percent.

Last month, two senior A.I. researchers — Ilya Sutskever and Jan Leike — left OpenAI under a cloud. Dr. Sutskever, who had been on OpenAI’s board and voted to fire Mr. Altman, had raised alarms about the potential risks of powerful A.I. systems. His departure was seen by some safety-minded employees as a setback.

Mr. Kokotajlo said, he became so worried that, last year, he told Mr. Altman that the company should “pivot to safety” and spend more time and resources guarding against A.I.’s risks rather than charging ahead to improve its models. He said that Mr. Altman had claimed to agree with him, but that nothing much changed.

In April, he quit. In an email to his team, he said he was leaving because he had “lost confidence that OpenAI will behave responsibly" as its systems approach human-level intelligence.

“The world isn’t ready, and we aren’t ready,” Mr. Kokotajlo wrote. “And I’m concerned we are rushing forward regardless and rationalizing our actions.”

On his way out, Mr. Kokotajlo refused to sign OpenAI’s standard paperwork for departing employees, which included a strict nondisparagement clause barring them from saying negative things about the company, or else risk having their vested equity taken away.

Many employees could lose out on millions of dollars if they refused to sign. Mr. Kokotajlo’s vested equity was worth roughly $1.7 million, he said, which amounted to the vast majority of his net worth, and he was prepared to forfeit all of it.

Mr. Altman said he was “genuinely embarrassed” not to have known about the agreements, and the company said it would remove nondisparagement clauses from its standard paperwork and release former employees from their agreements.)

In their open letter, Mr. Kokotajlo and the other former OpenAI employees call for an end to using nondisparagement and nondisclosure agreements at OpenAI and other A.I. companies.

“Broad confidentiality agreements block us from voicing our concerns, except to the very companies that may be failing to address these issues,”

They also call for A.I. companies to “support a culture of open criticism” and establish a reporting process for employees to anonymously raise safety-related concerns.

They have retained a pro bono lawyer, Lawrence Lessig, the prominent legal scholar and activist

Mr. Kokotajlo and his group are skeptical that self-regulation alone will be enough to prepare for a world with more powerful A.I. systems. So they are calling for lawmakers to regulate the industry, too.

“There needs to be some sort of democratically accountable, transparent governance structure in charge of this process," Mr. Kokotajlo said. “Instead of just a couple of different private companies racing with each other, and keeping it all secret.”

A lot of the news, however, is bad.

The bad news includes examples of people who reacted to Saturday’s events by glorifying violence, or by mocking its victims

The abject tactical failures of the Secret Service pose structural questions that urgently need to be answered.

The first conspiracies came from Trump’s detractors. As soon as the first pictures of his injury emerged, some influential Democratic activists and advisors suggested that this was a false flag operation, designed to strengthen his appeal.

Biden has, for example, repeatedly claimed that he decided to enter the 2020 presidential race after hearing Trump referring to the neo-Nazis and white supremacists who assembled for a deadly rally in Charlottesville in 2017 as “very fine people.” But while Trump was characteristically meandering and irresponsible in his remarks after that rally, he explicitly stated that “I'm not talking about the neo-Nazis and the white nationalists, because they should be condemned totally.”

Parts of the left have justified some forms of violence in the last years. Movements like Antifa explicitly glorify political violence, reserving for themselves both the right to take action against anyone they consider fascist, and the right to determine who should be included in that category

All of this is shameful. It must be called out and condemned without hedging or special pleading. But it also shouldn’t be inflated to imply that the Democratic establishment or the mainstream media has in general started to glorify violence.

Conversely, there is no doubt that parts of the Republican Party and the conservative movement have glorified political violence in the last years.

All of this is shameful, all the more so for coming from the most senior officials within the Republican Party. All of this must be called out and condemned without hedging or special pleading, something that the conservative media ecosystem have notably failed to do.

no excuse for overstating the extent to which the other side embraces political violence. And that is something that the most senior Democrats, from Joe Biden on down, have consistently done.

But the extent of conspiracism was much worse on the right.

he question of the day has come to be whether it is appropriate to portray Trump as an existential threat to democracy.

If it was appropriate to resist Hitler by violent means, and Trump is his modern-day equivalent, then (so goes the tacit implication of the New Republic’s cover), why shouldn’t it be legitimate to resist Trump by violent means?

Depressingly often, in American politics, both sides are badly wrong. In this particular case, it seems to me that both sides are mostly right.

It is perfectly appropriate—even in the aftermath of Saturday’s unconscionable attack on Trump—to warn about what his presidency may mean for America’s democracy. But there is never an excuse—even and especially when the stakes are truly high—for fear-mongering that distorts the exact nature of that threat.

if moments of tragedy and upheaval reveal the true state of a country, the first draft of America’s report card puts it in danger of failing. Most Americans continue to abhor violence. Our mutual hatred still knows limits. And yet the mix of institutional failure, conspiracist thinking, and partisan fear-mongering is very potent. The risk that it may yet set in motion dynamics which overwhelm the decent instincts of most ordinary Americans remains very real

As a history teacher in a large, diverse suburban high school, I have spent more and more time in recent years trying (with mixed results) to "win back" white boys falling down dark internet rabbit holes of racist, Islamophobic and antisemitic conspiracy theories, misogyny, etc. Most of these boys of course do not end up as shooters (when I suspect that might be the case I go right to administration), but they do end up holding horrifying views that bode ill for the future of our polity.

What defies the typical "shooter" stereotype among most in this larger universe of white boys getting radicalized online is that most, though not all, of the latter (in my experience) are among my most intellectually curious, thoughtful and sensitive students. But, to use Professor Henderson's phraseology, they are not "alphas." Some have friends, even girlfriends, but none of them are part of the "popular" crowd. They are bright, but not "good at school" like the students who end up in your Ivy League courses. At 15 or 16 or 17, they feel (correctly) that they have something to offer the world, but feel they have been locked out of all the paths to success in their narrow world: They'll never be star athletes, or valedictorian, or one of the popular kids.

They feel like the message we as a society (schools, YA literature, "mainstream media") are sending them is that "You are privileged; you are the oppressor, you are the cause and beneficiary of all the world's injustices." The complexities of graduate level political theory are generally lost on a teenage boy who feels like the whole world is against him. The irony is these are the boys who actually care about issues of justice. The quarterback and the debate champion don't care if you throw their privilege in their face. They know their worth and are too busy to care.

I am sharing this comment not so much to identify what motivates shooters - I have no expertise in criminal pathology - but more in terms of the educational vacuum creating a generation of disaffected young men open to believe conspiracy theories because we are no longer offering them an alternative narrative of Americanism that speak to them as powerfully as those of the conspiracy theorists, the White Nationalists, and the miraculously save man who will be their retribution.

MAGA has replaced Reaganism as the chief operating system of the Republican Party.

If Democrats hope to win in the near future they have to take the MAGA worldview seriously, and respectfully make the case, especially to working-class voters, for something better.

In a volatile world, MAGA offers people security. It promises secure borders and secure neighborhoods. It offers protection from globalization, from the creative destruction of modern capitalism. It offers protection from an educated class that looks down on you and indoctrinates your children in school. It offers you protection from corporate predators.

the problem with MAGA — and here is where the Democratic opportunity lies — is that it emerges from a mode of consciousness that is very different from the traditional American consciousness.

we saw ourselves, as the dynamic nation par excellence. We didn’t have a common past, but we dreamed of a common futur

“the Spirit of America is best known in Europe by one of its qualities — energy.”

Americans have a zeal for continual self-improvement, a “need tirelessly to tinker, improve everything and everybody, never leave anything alone.”

Americans can’t be secure if the world is in flames. That’s why America has to be active abroad in places like Ukraine, keeping wolves like Vladimir Putin at bay.

Through most of our history, we were not known for our profundity or culture but for living at full throttle.

MAGA, on the other hand, emerges from a scarcity consciousness, a zero-sum mentality: If we let in tons of immigrants they will take all our jobs; if America gets browner, “they” will replace “us.”

MAGA is based on a series of victim stories: The elites are out to screw us. Our allies are freeloading off us. Secular America is oppressing Christian America.

MAGA looks less like an American brand of conservatism and more like a European brand of conservatism. It resembles all those generations of Russian chauvinists who argued that the Russian masses embody all that is good but they are threatened by aliens from the outside

MAGA looks like a kind of right-wing Marxism, which assumes that class struggle is the permanent defining feature of politics.

The American consciousness has traditionally been an abundance consciousness.

If Democrats are to thrive, they need to tap into America’s dynamic cultural roots and show how they can be applied to the 21st century

My favorite definition of dynamism is adapted from the psychologist John Bowlby: All of life is a series of daring explorations from a secure base. If Democrats are to thrive, they need to offer people a vision both of the secure base and of the daring explorations.

MAGA is a fortress mentality, but America has traditionally been defined by a pioneering mentality. MAGA offers a strong shell, but not much in the way of wings needed to soar.

Americans can’t be secure if the border is in chaos. Popular support for continued immigration depends on a sense that the government has things under control.

Americans can’t be secure if a single setback will send people to the depths of crushing poverty. That’s why the social insurance programs that Democrats largely built are so important.

offer people a vision of the daring explorations that await them. That’s where the pessimistic post-Reagan Republicans can’t compete

champion the abundance agenda that people like Derek Thompson and my colleague Ezra Klein have been writing about. We need to build things. Lots of new homes. Supersonic airplanes and high-speed trains.

If Republicans are going to double down on class war rhetoric — elites versus masses — Democrats need to get out of that business

They need to stand up to protectionism, not join the stampede.

Democrats need to take on their teachers’ unions and commit to dynamism in the field of education.

Democrats need to throttle back the regulators who have been given such free rein that they’ve stifled innovation.

tap back into the more traditional American aspiration: We are not sentenced to a permanent class-riven future but can create a fluid, mobile society.

The economist Michael Strain of the American Enterprise Institute has offered a telling psychic critique of MAGA economic thinking: “The economics of grievance is ineffective, counterproductive and corrosive, eroding the foundations of prosperity. Messages matter. Tell people that the system is rigged, and they will aspire to less

Champion personal responsibility, and they will lift their aspirations. Promoting an optimistic vision of economic life can increase risk tolerance, ambition, effort and dynamism.”

t aspiration is not like a brick that just sits there. Aspiration is more like a flame that can be fed or dampened

“The problem is desire. We need to *want* these things. The problem is inertia. We need to want these things more than we want to prevent these things.”