Consider two economies. In the first, GDP grows at 3% annually, corporate profits reach record highs, and the stock market surges to new peaks. Yet median wages decline in real terms, household debt climbs to crisis levels, and half the population cannot cover a $400 emergency. In the second economy, GDP growth stalls at 1%, corporate earnings are modest, but median wages rise, household savings increase, and financial security improves for working families.
Which economy would you choose to live in?
We are living in the first economy. The United States is not in a recession by any official measure. GDP grew 3% last year. Unemployment sits at 4.1%. The S&P 500 has reached record highs. By the metrics economists and policymakers use to assess economic health, the American economy is robust.
Meanwhile, credit card delinquency rates have reached levels not seen since the Great Recession. Personal savings have collapsed to 2008 financial crisis lows. Nearly half of American households have zero retirement savings. Thirty-seven percent cannot cover a $400 emergency expense. By every measure that reflects whether ordinary people can afford housing, healthcare, food, and basic financial security, the economy is in crisis.
The problem is not that we are missing a recession. The metrics themselves measure the wrong things entirely.
A recession, by standard definition, is a significant decline in economic activity lasting more than a few months, typically identified by two consecutive quarters of negative GDP growth. This framework measures aggregate output and total employment. It asks whether the economy is producing less and whether fewer people are working.
These are not the questions that matter to household wellbeing. Consider what an economic system should optimize for. If the answer is human flourishing, then the relevant questions are different. Can people working full-time afford basic necessities? Can they save for emergencies? Can they retire with dignity? Is economic growth translating to improved living standards for the majority?
Our current metrics were not designed to answer these questions. They were designed to measure something else entirely.
Credit card delinquency hit 3.05% in Q1 2025, approaching Great Recession peaks and marking some of the highest levels in over a decade. This rate began climbing in late 2021 and has continued rising for over four years. The average household carrying credit card debt now pays over $2,300 annually just in interest at rates averaging 21–22%. These households borrowed to maintain living standards during inflation. Now they cannot service that debt even with nominal wage gains.
The bottom 20% of earners spend 62.7% of income on rent and utilities, leaving just $476 monthly for everything else. Food, transportation, healthcare, childcare, debt payments, emergencies. Nearly half of all renter households now spend over 30% of income on housing. Since 2001, median rents rose 21% inflation-adjusted while renter incomes grew just 2%.
Currently, food insecurity affects 47.4 million Americans. Nationally, 56% of food-insecure households had at least one adult employed full-time in 2023. Having a job provides no meaningful protection against hunger. Working poverty affects 6.4 million Americans who spent at least half the year employed but still fell below the poverty line, including 2.9 million full-time workers.
Strong GDP growth and record stock markets fail to improve these conditions because of who captures economic gains. The top 10% own 93% of all stock market wealth. The bottom 50% owns just 1%. When the S&P 500 gains 23%, the top 1% captures roughly 54% of those gains while the bottom half receives 1%. Since 1979, productivity grew 64.6% while median hourly pay grew just 17.5%. St. Louis Federal Reserve analysis found that 76% of recent profit growth went to shareholders through dividends while worker compensation as a share of national income remained flat.
The official unemployment rate counts only those actively seeking work in the past four weeks. It systematically excludes discouraged workers and those working part-time who need full-time employment. The broader U-6 measure reveals 86% more labor market distress than the headline number. GDP rises when billionaires increase spending or corporations boost investment, even as median household income declines.
The metrics we use to define economic health were not constructed by accident. They were designed to measure what matters to those who own capital. Aggregate output, corporate profits, and asset values. Whether working people can afford housing or healthcare is simply not what these frameworks were built to track.
The people who push “recession” and “economic strength” narratives are the same people whose wealth depends on corporate earnings and stock valuations. From their vantage point, an economy where GDP grows 3% while median wages fall is functioning perfectly well. It’s delivering exactly what it was designed to deliver.
The result is a measurement framework that treats household financial collapse as irrelevant to economic health. When half of American households spend over 30% of income on housing, this does not register as an economic problem in official statistics. When 37% cannot cover a $400 emergency, this does not factor into whether the economy is “strong.” When real wages decline while productivity surges, the system is working as intended.
By every measure that matters to household financial survival, most Americans are experiencing crisis conditions in 2025. “Recession” measures economic health the way a corporate balance sheet does. It tracks output and employment without regard to distribution, quality, or whether households can stay solvent. It tells you whether the economy is producing more, not whether that production translates to public wellbeing.
The disconnect between strong aggregate indicators and widespread household distress is the predictable result of a measurement framework designed to track capital returns rather than living standards. When economic gains flow overwhelmingly to those who already own most assets, GDP and stock markets can hit records while working people cannot afford rent, healthcare, or food.
Our economic framework was not built to measure your wellbeing. It was built to ignore it.
What do we do with this information? To start with, we know who not to trust. When someone cites GDP growth or the stock market to tell you the economy is strong, you know they are either ignorant of how these metrics function or they don’t care about the needs of the 99%. The metrics used by the oligarch media will not change because they want to convince people that their empty bank accounts don’t matter because Elon bought a new yacht and that’s good for GDP. But we no longer have to accept their framing of reality, and the more we can loudly and persistently shame its use, the more people will wake up.
If you found this article worthwhile, check out my book
Conservatism: America’s Empathy Disorder
https://a.co/d/6d4b1uH
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Democrats should blast these statistics out at every opportunity. Make the wealthy the bogeymen!
Great article. Should be required reading with a test later ( given to the current administration and MAGA).