Meet the Gen Z Author and Economic Commentator Who Coined the Term ‘Vibecession’
In an economic landscape rife with complexities, where raw data often contradicts consumers’ sentiments, Kyla Scanlon has emerged as a significant voice in the conversation. At just 27 years old, Scanlon has delved into the intricacies of the economy, gaining recognition for her engaging and accessible commentary. Her work, highlighted by her coining of the term “vibecession,” encapsulates the growing disconnect between economic indicators and public perception.
The Rise of Kyla Scanlon
Scanlon’s rise to fame has been impressive, not thanks to a lengthy career on Wall Street or an advanced degree, but rather her ability to articulate complicated economic concepts in straightforward terms. Recently, her contributions landed her a spot on the MarketWatch 50 list of the most influential figures in market commentary. Underpinning her success is her keen understanding of both the mechanics of the economy and the psychology of consumers.
Understanding ‘Vibecession’
Scanlon describes “vibecession” as a reaction to positive economic data juxtaposed with widespread consumer pessimism. She first noted this phenomenon in 2022 amid a backdrop of historically high inflation and declining consumer confidence, even as unemployment was low and the economy appeared to be recovering from the pandemic. Scanlon observed, “We had this economic data telling one story, and then we had consumer sentiment telling a completely different story.” Her insight suggests that merely focusing on raw economic numbers fails to capture the true mood of the public.
Limits of Federal Reserve Policy
According to Scanlon, the Federal Reserve wields significant influence over economic conditions but is limited in addressing deeper systemic issues. “The Fed has a really, really hard job, and they have a really, really blunt tool that they have to do that job with,” she explains. While interest rates can influence consumer spending and business investment, they do not directly tackle supply shortages in crucial sectors like housing and food production. As Scanlon points out, “The Fed can only do so much to influence the supply of housing units,” making it clear that more complex factors underlie current economic imbalances.
The Structure of Current Economic Challenges
Scanlon identifies underlying structural issues in the economy that contribute to the vibecession phenomenon. Major household expenses have skyrocketed due to inflation, prompting discontent despite seemingly favorable economic indicators. While inflation has somewhat eased, Scanlon warns that consumer sentiment remains fragile, and political factors may exacerbate disconnection between data and public sentiment. “Sentiment is more so being driven by politics right now,” she notes, hinting that upcoming elections could influence perceptions of the economy irrespective of its actual state.
The Importance of Economic Education
As an advocate for financial literacy, Scanlon emphasizes the need for clear communication about economic realities. Her journey into economics was spurred by her observations during a college internship selling cars, where she found that many consumers lacked basic financial knowledge. This realization prompted her to explore economics formally, leading to her eventual foray into social media and content creation.
Connecting with Audiences
Through her engaging content—ranging from short videos analyzing significant market events to her recently published book, In This Economy? How Money & Markets Really Work—Scanlon aims to demystify economics for the general public. Her book tackles topics such as cryptocurrencies, supply chain dynamics, and traditional economic principles, aiming to equip readers with the knowledge they need to navigate their financial decisions effectively.
The Future of Economic Commentary
As Scanlon continues to connect with her audience through various formats, she remains adaptable to the evolving media landscape. Acknowledging the potential for a TikTok ban, she reflects, “I don’t think the platform is good for people,” asserting that her mission remains focused on delivering quality economic education, wherever her audience might be. For Scanlon, understanding economics extends beyond mere survival; it encompasses empowerment and improving one’s position within the economic system.
Conclusion
Kyla Scanlon represents a new wave of economic commentators who prioritize accessibility and understanding in an area often considered arcane. By coining the term “vibecession” and advocating for economic literacy, she sheds light on the emotional side of the economy. As bad vibes linger, her efforts offer a reminder that consumer sentiment matters just as deeply as the numbers that underpin our financial systems.