The US economy is growing on paper, but Americans every day feel pressured. Why one expert says we are in a boomcession
You’ve heard of recessions and depressions – but what about a “boomcession”? That’s the term Matt Stoller coined to describe the current economic climate. A portmanteau of the words “boom” and “recession,” the term highlights the disconnect between booming economic data and the financial hardships that many Americans see in their daily lives.
“Traditionally, the economy does very well,” shared Stoller, an antimonopoly attorney and research director at the American Economic Liberties Project, a nonpartisan think tank. “But ordinary people say they are not.”
The stock market is booming, and consumer spending is high, pointing to a healthy economy. But many Americans do not feel good about their financial future (1). A study from Pew Research found that the majority of Americans have a negative view of the economy, with 72% of American adults rating the state of the country’s economy as good or bad (2).
Economists examine specific data when assessing the state of the economy – typically GDP (gross domestic product, or the average of all goods and services produced by a country), the stock market, inflation, the labor market, and consumer sentiment. And right now, those numbers tell different stories.
GDP is up (3), the stock market is hitting hard (4), and inflation is down (5), which are all indicators of a strong economy. The labor market has been sending mixed signals, especially after recent revisions that sharply reduced previously reported job growth, and consumer sentiment is at its lowest level in five years. So what gives?
“I’ve never seen anything like this,” said Diane Swonk, an economist at communications firm KPMG. “I’ve been doing this for 40 years. And I haven’t seen anything like this in a long time” (1).
Part of the disconnect is that inflation doesn’t hit everyone equally. Although overall inflation has decreased, the most important categories (grocery and housing) have increased significantly between 2020 and 2025. Those essentials make up a large portion of the budgets of low-income families, meaning price increases hit them the hardest.
Debt adds to the difficulty. Credit card balances reached a record $1.28 trillion in the fourth quarter of last year, according to the New York Fed. With interest rates still elevated, carrying a balance is more expensive than a few years ago.
The labor market is also sending mixed signals. Economists have described today’s environment as a “collapse of employment” or “rising unemployment.” At the same time, productivity has increased, raising concerns that companies can produce more with fewer workers. That would leave national workers vulnerable, even if unemployment remains relatively low (1).
Simply put, the economy may be growing, but the benefits are not shared equally. And for Americans who don’t own stocks or have large financial holdings, a booming market doesn’t translate into everyday security.
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When you feel financial stress, you don’t think things through. While the national numbers look good, many everyday Americans are feeling the pinch on the budget. Here are a few ways to build financial security in today’s development:
Start or build your emergency fund. Saving for a rainy day can be difficult when you’re struggling to make ends meet. But even small donations add up over time. Putting a few dollars a month into a high-yield savings account can create a safety net over time. Set aside three to six months’ worth of expenses, but focus on saving every time things are tight.
Tackle high-interest loans first. With credit card balances reaching record highs, monthly payments can quickly eat into any financial wiggle room. Focus on paying off high-interest debt first, then move on to low-interest debt. If you qualify, consider opening a new card with a low or no introductory interest rate. Just make sure you can pay off the balance before the introductory period ends.
Combine your sources of income. In today’s job market, you cannot rely on one company to provide income for your entire family. Depending on your situation, that could mean freelancing, gig work, or opening a service-based business on the side. Having more than one way to pay off debts can ease financial stress and provide a cushion in the event of a job loss.
Learn new skills to help you spend less money. Look for ways to work with what you already have. Repairing or altering clothes can be a fulfilling activity and a way to spend less money on clothes. Use online how-to videos to learn basic skills like fixing a broken washing machine or a leaking faucet. Search for recipes that offer easy swaps of basic ingredients to use up what’s already in your pantry.
Lean on your community. The difficult economic conditions serve as a reminder that we are not alone in this. Look for self-run community groups, sometimes called mutual aid, that offer support. Look for grassroots community groups that offer support. Many neighborhoods have local sharing networks, free food pantries or barter groups where neighbors help each other in difficult times. And if you can’t find what you need in your community, consider creating one. You may find your neighbors are looking for a similar solution.
The idea of a “boomcession” captures a strange moment in the US economy, where strong global indicators coexist with real domestic stress. While individuals cannot control the wider economy, saving money, reducing debt and strengthening social relationships can make uncertain times manageable.
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CNBC (1, 4); Pew Research Center (2); Bureau of Economic Analysis (3); YCharts (5)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
