Real wages have risen in America and are rebounding in Europe

Not much unites the world these days. Yet there is one sentiment shared by many people, regardless of nationality: pessimism about the economy. Just one in ten Americans thinks they are better off than a year ago, according to a recent poll conducted for The Economist by YouGov. Similar negativity shows up in surveys elsewhere.

Such glumness persists in America despite the remarkable feat performed by its economy: workers’ real wages are significantly higher than before the covid-19 pandemic—even after controlling for inflation. Those on low incomes have done particularly well, benefiting from tight labour markets since 2021.