If the economy is good, why do some Americans still feel like everything is ‘falling apart’?
64% of Americans said they believe the U.S. economy will enter a recession in the next 12 months.
These cracks aren’t just showing up in sentiment, either: The chief economist at Moody’s Analytics estimates 22 states are already in a recession, while another 13 are treading water economically.
Positive indicators like GDP growth and a booming stock market have not been enough to boost confidence for large swaths of the population.
Because the top 10% of earners now account for 50% of spending in the U.S., their outcomes can easily overshadow what is happening with the remaining 90% of the Americans.
“The economy is just so weird” right now, recruiter Julie Reed, the founder of IKR Enterprises, told MarketWatch. “Are there tariffs? Are there no tariffs? Do people have money? Do we not have money? What is even happening?”
Caught in a tide of conflicting information, “it doesn’t feel like anything is real,” she said. “It’s like we’re all on some weird reality TV show.”
Venessa Wong and Andrew Keshner MarketWatch Oct. 20, 2025
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