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Why Is Consumer Sentiment at Record Lows? May 27, 2026
Consumer sentiment is at record lows because there is zero visibility on any real-world trends that would be positive for the bottom 90%. Vague promises of super-abundance are not visibility.
Why is consumer sentiment at record lows while the stock market is at record highs? The media / social media are ablaze with coverage and commentary on this K-shaped economy, for example: The Stock Market Has Never Been So Good When People Have Felt So Bad: Stocks are partying like it's 1999. Americans haven't been this gloomy in 70 years. (wsj.com) While much commentary focuses on the rising cost of living (i.e. inflation) and the potential disruption of jobs by AI, these miss the larger dynamic of visibility, i.e. what is visible looking forward. If the horizon is clouded by uncertainty and unaffordability, then the core investments in the future--a family home and a family--are no longer in reach except for the lucky few inheriting wealth while they're young. A high-paying job that isn't secure is not a foundation, it's a temporary raft in a tempestuous sea. Why So Few Babies? We Might Have Overlooked the Biggest Reason of All. What unites these disparate cultures, policy environments and demographics, researchers are now realizing, is young people's inescapable and crushing sense that the future is too uncertain for the lifelong commitment of parenthood. The future has never been assured, but it feels as though we are living in a time of spectacular uncertainty. The Gen X writer Astra Taylor calls ours "the age of insecurity"; the Gen Z writer Kyla Scanlon has described "the end of predictable progress." Gen Z-ers' uncertainty about the future can't be captured by the usual metrics or entered neatly into a spreadsheet. But it may be the X factor in the global parenting free fall. Raising children is an inherently forward-looking project, and in Professor Vignoli's analysis, increasing exposure to a volatile global economy and accelerating technological change make it hard for young people to project a path forward with even a modest degree of confidence. In previous lows in consumer sentiment, current economic conditions were unfavorable because the economy was in a recession. I've indicated the three major recessions of the past 50 years on the chart below: 1973-74 (energy crisis / inflation), 1980-82 (inflation, higher interest rates), and 2008-09 (housing bubble burst, subprime mortgage meltdown triggers Global Financial Crisis). The most important difference between then (1973-2009) and now is that average households could still afford to buy a house and have a family and now those are out of reach for a significant percentage of median-income urban households. In previous recessions, consumers suffering the effects of recession had visibility on evidence that once the economy improved, they would still be able to afford to buy a house and raise a family. This visibility wasn't a top-down narrative bolstered by gamed statistics; it was visible across the entire spectrum of the economy. The truth few dare to recognize is there is no credible evidence that housing and having a family will return to being affordable for the majority in the foreseeable future. If these are what matters, then rising GDP (a favorite metric of those promoting the narrative that rising GDP means everything's getting better for everyone) offers no visibility on what matters to households. Also unsaid because it undermines the narratives of permanent Progress and the system benefits us all is the visible decline of the quality of everyday life. Life is more hectic, more precarious, less secure, and our health is declining in ways that go unrecognized because that undermines the narratives propping up the status quo. It's not just the cost of living is rising; the quality of life is deteriorating in ways that are not easily measurable. Healthcare claims being denied, busy-work being offloaded by Corporate America onto the household, the steady decline in quality of goods and services--in all these cases, what was once reliable and of good quality has been degraded. To contact customer service is now a nightmarish experience of being returned to the same menu of options, none of which address the problem you're trying to resolve. This Is Why You're Drowning in Busywork We have been told that AI will take people's jobs. What no one mentions is that many of those jobs are landing on us. The AI revolution involves a huge transfer of labor--not from worker to machine but from worker to consumer. Consumers have visibility on this degradation of the quality of everyday life, and they see no plausible evidence it's reversing. The trajectory of the future is more degradation, and there is no evidence AI will reverse this trajectory. Rather, in many ways it's accelerating it. There is a lively debate about whether AI will in aggregate create jobs or eliminate jobs, or generate churn that leaves the total number of jobs about the same. At this early stage, there is no visibility on how this will play out, but consumers have visibility on the potential for job losses, reductions of benefits, the collapse of job security and the possibility that most of the replacement jobs being created will be low pay and insecure. Households have no visibility on the promise that AI will generate vast prosperity that they will share, but they have clear visibility on AI decimating stable employment. Pundits offer up the historical record that previous Industrial Revolutions laid waste to social and economic security but eventually created more general prosperity. Households understand that this sounds nice while supporting the status quo inequality, but there is no guarantee in history; it's not gravity, it's contingent. This Industrial Revolution might just decimate social and economic structures and leave a dystopia in its wake that institutionalizes extreme inequality not just in wealth and outcomes but in opportunity and freedom of movement. What's visible is not warm and fuzzy, and insisting that consumers / households have it wrong because those set to reap extraordinary profits insist it wll all work out just fine is comically disconnected from reality. There is no visibility on all those promises of super-abundance that's going to lift all boats, and no visibility on society surviving the onslaught of Big Tech AI. The social order that underpins the economy has already been already discounted to near-zero by the technocratic value system and machinery of Big Tech's optimization to increase profitability by any means available, and the resulting decay of the quality of life and the moral foundations of a functional society. Why is consumer sentiment at record lows while the stock market is at new highs? Ask what's visible. What's visible is soaring corporate profits and stock indices only benefit the top 10% who own the lion's share of stocks. What's visible is the decline in security, affordability, the purchasing power of wages and the quality of life, and the absence of any evidence that this trajectory downward is about to reverse. What's visible is billionaires reaping outlandish gains from financializing technology promising that their gains will trickle down to the bottom 90% after the foundations of the bottom 90%'s security are gutted and reworked in some unforeseeable way that will magically make everyone rich. This isn't visibility; it's FantasyLand. What's visible is the decay and decline of security, employment, opportunity and visibility itself, and the emergence of a neofeudal society that is so corrupt that it no longer has the ability to recognize its own moral decay. We inhabit a Tower of Babel that's automating its own demise. We all have visibility on this, but to admit this is to admit the entire status quo is set on self-destruct while indulging in self-glorifying fantasies. Consumer sentiment is at record lows because there is zero visibility on any real-world trends that would be positive for the bottom 90%. Vague promises of super-abundance are not visibility. 
Here is the May 2026 snapshot of consumer sentiment: 
This is a 10-year chart of consumer sentiment: 
What do we have visibility on? How about the widening gulf between the wealthy and powerful and everyone else? 
My book Investing In Revolution is available at a 10% discount ($18 for the paperback, $24 for the hardcover and $8.95 for the ebook edition). Introduction (free) Become a $3/month patron of my work via patreon.com Subscribe to my Substack for free My recent books: Disclosure: As an Amazon Associate I earn from qualifying purchases originated via links to Amazon products on this site. THE REVOLUTION TRILOGY: Investing In Revolution Ultra-Processed Life The Mythology of Progress Systemic Problems/Solutions Investing In Revolution (2025) Introduction (free) The Mythology of Progress (2024) Introduction (free) Global Crisis, National Renewal (2021) Introduction (free) Money and Work Unchained (2017) Introduction (free) A Radically Beneficial World (2015) Introduction (free) What You Can Do Yourself Ultra-Processed Life (2025) Introduction (free) Self-Reliance in the 21st Century (2022) Introduction (free) When You Can't Go On: Burnout, Reckoning and Renewal (2022) Introduction (free) Get a Job, Build a Real Career and Defy a Bewildering Economy (2014) Intro (free) Novels The Adventures of the Consulting Philosopher Intro (free) The Secret Life of an Asian Heroine First chapters (free) Become a $3/month patron of my work via patreon.com. Subscribe to my Substack for free Investing In Revolution print $18, (Kindle $8.95, Hardcover $24 (145 pages, 2025) 
Only now do we see that we've been investing in revolution for decades--not the revolutions we thought we were investing in, revolutions in technology and finance, but in the social revolution made inevitable by the extremes that we've reached in our single-minded pursuit of private gains.
The pendulum that we've pushed to an extreme will swing to the opposite extreme, and the artifices that have propped up a facade a stability for decades will accelerate the disorder rather than reverse it. We now stand at the point of decision, and this book offers a path to a reformation and renewal that serves the shared interests of us all, not just the few. Introduction (free) Ultra-Processed Life print $16, (Kindle $7.95, audiobook, Hardcover $20 (129 pages, 2025) 
Ultra-Processed Life: the substitution of a synthetic, commoditized, very profitable facsimile for what was once authentic.
Ultra-Processed Life is my term for everything that is analogous to ultra-processed snacks: attractively marketed, instantly alluring, easy to consume, addictive by design, tasty in the moment but harmful over time, its origins a black box of unknown processes, the brightly colored product bearing no resemblance to the real-world ingredients, an idealized form of what is inherently imperfect, untethered from the natural world. As with many others, the catalyst for my exploration was a life-threatening medical crisis that did not have a specific cause. This led me to wonder if our entire way of life is like an ultra-processed snack: tasty but not healthy, edible but stripped of the nutrients we need to be healthy, addictive by design. Introduction (free) The Mythology of Progress, Anti-Progress and a Mythology for the 21st Century print $20, (Kindle $9.95, Hardcover $24 (215 pages, 2024) audiobook, Read the Introduction and first chapter for free (PDF) 
What if the policies to accelerate growth are no longer working because our fix for every problem--growth at any cost--is failing? We're told Progress is inevitable as a result of technology, but everyday life is getting harder, not easier--the opposite of Progress, what I call Anti-Progress.
What if the real source of the unraveling is far deeper than economics or politics? What if the problem is what we see as the inevitable destiny of humanity--Progress--is actually a modern mythology, disconnected from the real-world consequences of growth for growth's sake? We indignantly reject that Progress is a mythology, but our need for mythology hasn't gone away because we've mastered technology; we've created a modern mythology of technology that is heedless of its own consequences. To truly progress, we need a new mythology aligned to 21st century realities. Read the Introduction and first chapter for free
Recent entries: Why Is Consumer Sentiment at Record Lows? May 27, 2026 The Overstuffed Freezer Analogy May 25, 2026 When Unfairness Is Systemic, the Consequences Are Flight, Resistance, Revolt May 20, 2026 Inequality, AI and Digital Life Are Undermining Society May 19, 2026 We've Optimized Fragility, Failure, Denial--and Rage May 18, 2026 Remember: In a Crisis, Everyone Will Consider Themselves 'The Good Guys' May 13, 2026 Chaos Unleashed: When "Irrational" Makes Perfect Sense May 12, 2026 When US Treasuries Play a Reverse Card May 11, 2026 What Would Be Truly Bullish? Actually Fixing What's Broken May 6, 2026 Recession and Revolution: Our Experience Isn't a Model or System May 4, 2026 Why We're Helpless When Things Break Down May 1, 2026 AI, Money, Human Nature and the Problem with Problems April 29, 2026
Sex, Money and Demographics
April 27, 2026
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"There is no security on this earth; there is only opportunity." (Douglas MacArthur) "We are what we repeatedly do." (Aristotle) "Do the thing and you shall have the power." (Ralph Waldo Emerson) "Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction." (E.F. Schumacher, via Tom R.) "He who will not risk cannot win." (John Paul Jones) "When we drink coffee, ideas march in like the army." (Honore de Balzac) "Progress is not possible without deviation." (Frank Zappa, via Richard Metzger) "Victory favors those who take pains." (amat victoria curam) "The man who has a garden and a library has everything." (Cicero, via Lee Bentley) "A healthy homecooked family meal and a home garden are revolutionary acts." (CHS) "Do you know what amazes me more than anything else? The impotence of force to organize anything." 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Smith's Neofeudalism Principle #1: If the citizenry cannot replace a kleptocratic authoritarian government and/or limit the power of the financial Aristocracy at the ballot box, the nation is a democracy in name only. The Smith Corollary to Metcalfe's Law (The Network Effect): the value of the network is created not just by the number of connected devices/users but by the value of the information and knowledge shared by users in sub-networks and in the entire network. (CHS, 4/6/16) My Credo of Liberation: I no longer care if the power centers of our society--the distant, fortified castles of our financial feudal system--are changed by my actions, for I am liberated by the act of resistance. I am no longer complicit in perpetuating fraudulent feudalism and the pathology of concentrated power. I no longer covet signifiers of membership in the Upper Caste that serves the plutocracy. I am liberated from self-destructive consumerist-State financialization and the delusion that debt servitude and obedience to sociopathological Elites serve my self-interests. (Thank you, Klaus-Peter L., for reminding me) "We've become a culture of excuses rather than solutions: solutions always require sustained effort and discipline." (CHS 4/9/16) "Fraud as a way of life caters an extravagant banquet of consequences." (CHS 4/14/16) "Creativity = problem solving = value creation." (CHS 6/4/16) "Truth is powerful because it is the core dynamic of solving problems." (CHS 7/21/17) "We live in a system of human emotions that masquerades as a science (economics)." (CHS 1/1/18) "Always remember, your focus determines your reality." (George Lucas) "Diversity is for poor people. Sameness is for the successful." (GFB) "When power dissipates suddenly, it dissipates completely." (CHS 7/14/19) "Disobedience is the true foundation of liberty. The obedient must be slaves." (Henry David Thoreau) "Markets cannot price in the value of non-monetized natural assets such as diverse ecosystems." (CHS 7/14/19) "Magical thinking isn't optimism, it is folly." CHS 1/3/22) "Tune in (to self-reliance), drop out (of hyper-consumerism and debt-serfdom) and turn on (to relocalizing capital and agency)." (CHS 1/5/22) "The path to everything you desire starts here: like yourself as you are right now." (CHS 11/20/22) "There are only two signals: how many essentials you produce and share and if you're consuming less with better results. Everything else is noise." (CHS 12/17/22) "Liberation is no longer needing any confirmation or feedback from others or the world for one's sense of self. Wealth, fame, recognition, admiration, praise, prestige, approval, sainthood, martyrdom, success: none are needed, none are desired." (CHS 12/26/22) "When fame, wealth, prestige, status and glory are out of reach, you're free to pursue other more valuable things." (CHS 2/6/22) "It is the sacred duty of every activist who seeks to better their community to grow and share as much life-giving food as is humanly possible." (CHS 6/15/23) "Being anonymous, gray and unknown is the ideal state of freedom." (CHS 3/15/24) "We seem to have entered a world of anti-leisure and anti-productivity in which the unpaid shadow work demanded to keep all the complicated digital bits in motion obliterate our leisure and productivity." CHS (5/22/24) "It is axiomatic that failing systems work the best just before they fail catastrophically." Ray W. "Looking younger is mere technique; thinking younger demands creativity." CHS (10/16/24) "Tell me what's taboo and I'll tell you the truths that threaten the status quo." CHS (12/15/24) "This is the core of the Attention Economy: the ultimate addiction is the addiction to ourselves." CHS (1/28/25) "If You Seek the Truth, Look for What's Taboo." CHS (7/18/25) "My definition of self-reliance: the less you need, the easier it is to get what you need." CHS (7/26/25) "Mastery requires reading and doing." CHS (7/28/25) "The replacement of authentic value, quality, agency, choice, trust, legitimacy and experience with self-serving facsimiles is the key dynamic of Ultra-Processed Life, my term for the present-day human condition." CHS (8/12/25) "Ultra-Processed Life replaces an authentic experience with a synthetic, simulated, commoditized, highly profitable version that's superficially attractive but destructive over the long term." CHS (8/12/25) "What we see everywhere is the replacement of authentic things--including democracy--with synthetic facsimiles designed to maintain the illusion of choice and value." CHS (8/12/25) "Sometimes certainty is the enemy we don't even see and uncertainty is our most faithful ally." CHS (9/20/25) "Sanitized, homogenized, synthesized Ultra-Processed Life isn't more fun; it's just more profitable." CHS (4/6/26) "AI is ultra-processed cognition." CHS (4/6/26) |
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