Edward Conard

Top Ten New York Times Bestselling Author

  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “Unintended Consequences is far smarter and more thought-provoking than most economics written for the general public” - Greg Mankiw, Harvard University, Former Chairman of the Council of Economic Advisors
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
Upside of Inequality Oxford Unintended Consequences

AI Summary. University of Michigan survey data show consumer sentiment declining for households earning both above and below $100,000, with job-loss worries at levels typically seen in recessions and a record-high share of consumers saying business conditions are worsening. Income expectations are falling while inflation expectations are rising rapidly.

Torsten Sløk Apollo
Date Posted:

The March Michigan Survey of Consumers shows both consumer sentiment and employment expectations deteriorating “at an alarming rate.” Torsten Sløk notes, “Consumer worries about losing their jobs are at levels normally seen during recessions.”

Is consumer sentiment declining rapidly across income levels?

Core argument: The University of Michigan's March consumer sentiment survey shows sentiment declining rapidly among households earning both above and below $100,000, with a record-high share of consumers saying business conditions are worsening.

The March survey of consumer sentiment from the University of Michigan shows the following: Consumer sentiment is declining rapidly both for households making more than $100,000 and less than $100,000. Consumer worries about losing their jobs are at levels normally seen during recessions. A record-high share of consumers think business conditions are worsening. Households’ income expectations are declining. Inflation expectations are rising at an unprecedented speed. The bottom line is that consumer sentiment is deteriorating at an alarming rate.

Takeaways by Macro Roundup® AI

  1. The University of Michigan's March consumer sentiment survey shows sentiment declining rapidly among households earning both above and below $100,000, with a record-high share of consumers saying business conditions are worsening.
  2. Consumer worries about job loss in the March University of Michigan survey stand at levels normally seen during recessions, while households' income expectations are declining.
  3. Inflation expectations in the March University of Michigan survey are rising at an unprecedented speed, part of a broader deterioration in consumer sentiment.

Related Articles:

  • How Do Electoral Votes, Presidential Approval, and Consumer Sentiment Respond to Economic Indicators? — The authors estimate that unemployment, current inflation, and a set of noneconomic factors explain much of the variation in US presidential approval ratings since 1956, with the economic indicators' combined contribution almost always negative. Once noneconomic effects are included, the Michigan Consumer Sentiment Index loses its advantage over the economic variables.
  • The Cost of Money is Part of the Cost of Living: New Evidence on the Consumer Sentiment Anomaly — Variation in the University of Michigan consumer sentiment index that inflation and unemployment cannot explain is strongly correlated with growth in consumer borrowing costs, such as mortgage and car loan rates. The authors estimate that including interest payments and homeownership costs in the consumer price index would raise measured inflation from 3% to 9%.
  • It’s No Longer The Economy, Stupid — The long-standing link between economic sentiment and government popularity has disappeared in the US while remaining strong in France and Germany and, to a lesser degree, the UK. The author attributes this decoupling to hyper-partisanship, arguing that American voters' political allegiances now shape their economic perceptions rather than the reverse.
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