Another solid, numbers-and-logic based essay at ACX: Vibesession: Much More Than You Wanted To Know. I have seen a few people trying to sort this out, and this is as good or better than any.
Young people complain they’ve been permanently locked out of opportunity. They will never become homeowners, never be able to support a family, only keep treading water at precarious gig jobs forever. They got a 5.9 GPA and couldn’t get into college; they applied to 2,051 companies in the past week without so much as a politely-phrased rejection. Sometime in the 1990s, the Boomers ripped up the social contract where hard work leads to a pleasant middle-class life, replacing it with a hellworld where you will own nothing and numb the pain with algorithmic slop. The only live political question is whether to blame immigrants, blame billionaires, or just trade crypto in the hopes that some memecoin buys you a ticket out of the permanent underclass.
Meanwhile, economists say things have never been better.
Are the youth succumbing to a “negativity bias” where they see the past through “rose-colored glasses”? Are the economists looking at some ivory tower High Modernist metric that fails to capture real life? Or is there something more complicated going on?
Alexander first assesses the vibes according to usual metrics of consumer confidence and optimism. Are people, especially young people that discouraged and pessimistic or is this just click-seekers on social media? Answer: It's overstated but real. Next he looks at economists assessment of how we are doing, over the last five months, five years, and five decades. The short answer: Things are unevenly better all the time, but a few key things are worse.
And in particular, housing costs were at historic lows 2010-2012 - mortgages, interest rates, rents - and have risen since then. So they aren't bad until the covid years, but if you are young, they sure look it. That could be your vibes right there.
What looks like a throwaway line jumped off the page at me: Partly because the bill for ~50 years of NIMBYism has finally come due. Maybe I am overreading that, but it rings true. Housing is expensive because we don't have enough of it. Contractors make more money on bigger houses on more acreage, so that's what they build. Everyone knows we need to build more houses of less than 2500sf on 2 acres that cost half a million, but all the ways of getting there run into the roadblock of towns and neighborhoods not wanting that.
I was going to guess that getting more people into affordable houses would solve both the wealth accumulation and the vibes, because once people are in a house they are more likely to give up their weekends and travel, stay married, and volunteer in the community. But that's the reasoning that got us into the housing bubble of 2008. Maybe that would have not been as bad if we had regulated the mortgage market more tightly. Rule of thumb: When a percentage of Republicans asks for tighter regulations while everyone else is opening the throttle, that counterintuitiveness is worth examining.
Still, I have to think getting to the More Housing side of things would help.
I draw your attention to the section "The Brooklyn Theory of Everything," for some additional surprising insights.

