Economics: A very nice theory of why an inflation that is zero-sum with respect to the real household budget is, nevertheless, a source of great anxiety. Things that you purchase that you cannot adjust without a difficult conversation with your spouse have gone up in price, and you rationally fear that they may go up in price even more. And you cannot control whether that will happen, and that is a great source of anxiety:

Dan Davies: theories of the vibes <backofmind.substack.com…>: ‘everything's fantastic and nobody's happy…. What’s bad about economic bad times for consumers…. 2. Lack of control or agency over own economic life…. [That] is right in my wheelhouse…. The psychological sensation of not having control over your own life is really bad…. T..here’s a wedge between real household incomes, and the proportion of that income which the householder perceives as being under his or her control.  Measured consumption doesn’t distinguish between goods and services that are experienced as a personal decision and exercise of purchasing power, and those that show up as yet another monthly bill that has to be paid…

theories of the vibes
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2:44 PM
Dec 20