Tyler Schipper, an economist and associate professor in the College of Arts and Sciences at the University of St. Thomas, recently spoke with WCCO Radio about the growing disconnect between consumer sentiment and financial market performance. Despite rising stock indices, many Americans continue to report financial strain, highlighting a split in how different segments of the population are experiencing the economy.
“Ultimately, people are anxious about economic conditions,” Schipper explained. “They still feel financially squeezed. That’s the prevailing mood among everyday consumers when surveyed.”
The host noted the apparent contradiction: while markets appear robust, many individuals report struggling with costs. Schipper responded by framing the economy as increasingly segmented. “I’ve come to view the economy as divided into three parts,” he said. “Two-thirds of the population—what I refer to as average households—are feeling significant pressure. Survey data consistently reflects this sense of constraint. Meanwhile, the top third, particularly higher-income individuals, are far more optimistic. They’re benefiting from strong returns on investments, stable employment, and sustained spending power. Their consumption patterns are, in fact, helping to maintain overall economic growth.”
This divergence underscores a broader trend where macroeconomic indicators may not fully reflect the lived realities of a large portion of the population. While asset owners see gains in equities and real estate, wage earners without substantial portfolios face persistent inflation and high living expenses. Schipper’s analysis suggests that economic well-being is becoming increasingly uneven, with financial health closely tied to income level and asset ownership.
— news from Newsroom | University of St. Thomas
— News Original —
In the News: Tyler Schipper on the Divide in Economic Sentiment – Newsroom
Tyler Schipper, economist and associate professor at the College of Arts and Sciences at the University of St. Thomas, was interviewed by WCCO Radio on how while consumer sentiment is low, the stock market continues to grow. n nHost: What do you see going on right now? n nSchipper: At the bottom line, people are nervous about the economy. They’re still feeling pinched. That’s how consumers are feeling at the end of the day. n nHost: There is this competing information out there. Markets seem to have been going great. I think that’s confusing for people, how that can be going on while other things seem to be going a different way. n nSchipper: More and more, I’ve been seeing the economy as divided in three parts. Two-thirds of the economy, “regular people,” are really feeling pinched. They say so when asked in survey data. Then you also have that one-third part of the economy, the wealthier people, who are feeling pretty good about the economy right now. They are feeling pretty good about their stock market portfolios, their jobs are going well. Their consumption is keeping growth up.