Recent data suggests that Americans may be experiencing a form of collective economic post-traumatic stress disorder, stemming from the unprecedented lockdowns that occurred five years ago. This
psychological phenomenon, traditionally associated with battlefield trauma, appears to be manifesting in current consumer sentiment and economic outlook.
Despite improving inflation numbers and slight gains in private sector employment, public sentiment has taken an unexpected downturn. A study commissioned by the Brownstone Institute in 2024 revealed that the United States has actually been in a technical recession since 2022, with no meaningful recovery since 2020. The research, which examined industry price data and realistic output estimates, has gone unchallenged.
The University of Michigan’s Consumer Sentiment Index, after showing positive trends for three years, has recently demonstrated a significant decline. Curiously, this comes at a time when inflation rates are at their lowest point in four years. The institute, which conducts these surveys with approximately 1,000 participants, receives substantial federal funding – up to $100 million annually from various government agencies including the NIH, NSF, and Social Security Administration.
The public’s current economic anxiety might be attributed to delayed recognition of financial realities: decreased real income, diminished savings, and mounting expenses. This recognition comes after years of media assertions about economic recovery that may have been more illusion than substance.
The five-year anniversary of the COVID-19 lockdowns marks a pivotal moment in collective trauma. These unprecedented restrictions devastated countless businesses, closed essential institutions, and fundamentally disrupted economic activity. Similar to veterans who rarely discuss their war experiences, many people still find it difficult to process or discuss this period.
A recent airport interaction captured this dynamic perfectly: when asked about an “I won’t be locked down” awareness bracelet, a traveler’s brief response of “Yeah that sucked” followed by “We haven’t really had a kind of reckoning with all that, have we?” exemplifies the unprocessed nature of this societal trauma.
The economic data landscape has become increasingly complex since the lockdowns disrupted traditional reporting methods. The distinction between economic growth and decline has become blurred, leading to widespread uncertainty. Recent declines in major financial indexes have seemingly triggered a shift from public indifference to pessimism.
Questions have emerged about the reliability of economic indicators, particularly given the funding structures behind research
institutions. The revelation that supposedly independent research centers receive significant federal funding has led to increased scrutiny of economic data and reporting.
The period before the lockdowns represents the last moment of economic innocence for many Americans. The recovery process mirrors the stages of trauma response: denial, anger, bargaining, depression, and eventually acceptance. Current indicators suggest we might be entering the acceptance phase, where reality is finally being confronted despite years of contrary messaging.
This collective PTSD manifests in heightened sensitivity to economic threats, persistent anxiety about financial stability, and a general distrust of official economic narratives. The delayed recognition of economic challenges, combined with the unprocessed trauma of the lockdown period, has created a complex psychological and economic landscape that continues to influence public sentiment and behavior.