Is Social Media Misleading Americans About the State of the Economy?

A new report from the U.S. Bureau of Labor Statistics revealed an increase of 353,000 jobs in January 2024, marking 36 straight months of positive job numbers under President Joe Biden. Real gross domestic product grew at a respectable rate of 3.3 percent in the fourth quarter of 2023, and the stock market has seen record highs. Employee wages are also improving.

But Americans are not convinced that things are getting better financially. In fact, 65 percent of respondents to a recent poll from the Associated Press-NORC Center for Public Affairs described the economy as “poor.” Many are frustrated by rising prices for food and other necessities. In a mid-January Axios Vibes survey by The Harris Poll, 59 percent of participants said they felt “angry, anxious, or resigned” when shopping.

Social media has amplified these emotions. For example, a McDonald’s patron shared his receipt on TikTok last November to highlight the exorbitant cost of $16.10 for a Double Quarter Pounder, a large fries, and a drink. The post gained several hundred thousand views even though the meal was purchased in 2022.

Another shopper shared a more recent receipt, which showed he spent $51.05 on cereal, milk, deodorant, detergent, and a 4-pack of toothbrushes at Target. The same reel shows a woman who paid $70 for “two bottles of hair product, a bottle of shampoo, a box of trash bags, and one Halloween decoration.”  

Even multi-millionaire rapper Cardi B, in an expletive-filled video, claimed that “lettuce was like two dollars a couple of months ago, and now it’s like […] seven.” The artist has nearly 28 million followers on X and 148 million more on Instagram, so the message was heard loud and clear.

After the McDonald’s receipt went viral, the White House Office of Digital Strategy bristled at the video, claiming it was an exaggeration. They implied that it was an example of misinformation and disinformation because the price of other menu items, such as the Big Mac, haven’t gone up that much.

Indeed, The Washington Post highlighted three viral TikTok videos that shared what the newspaper deemed wrong or inaccurate claims about low purchasing power, dipping wages, and decreased disposable income.    

According to the White House, inflation has also been depicted misleadingly in the press and on social media. Biden said this month that the “cost of eggs, milk, chicken, gas and so many other essential items have come down.”

However, the media outlet TheStreet dug deeper and found that the price of eggs has actually gone up 47 percent since August 2021. Milk has also increased in price; for example, Walmart shoppers paid $1.38 for a gallon in 2022 and $3.46 in August 2023.

Biden claimed in January that high prices are the result of grocery stores and other businesses gouging consumers. “For all we’ve done to bring prices down, there are still too many corporations in America ripping people off: price gouging, junk fees, greedflation, shrinkflation.” The president also made a video, aired on Super Bowl Sunday, which explained that “[shrinkflation] means companies are giving you less for every dollar you spend.”

Biden and White House rapid responders may think social media users are passing along misinformation and disinformation. But if opinion polls are correct in assessing Americans’ sour mood regarding the economy, they appear to be losing the battle. The administration’s claims of fake news, shrinkflation, and price gouging don’t seem to placate consumers, who must dig ever deeper into their wallets despite reports of decreasing inflation.

This teases out an important point about the spread of misinformation and disinformation. When it comes to messaging on hot-button issues, people and groups across the political spectrum generate misleading content. Of course, there have been examples of inaccurate or exaggerated social media posts about the economy, but Biden himself has released wrongful claims about the prices of milk and eggs. Nevertheless, receipts don’t lie, and as long as social media influencers produce evidence of inflated prices, it will be difficult for the White House to counter that narrative.

It also seems that the veracity of what constitutes misinformation and disinformation depends on where you shop. Ruling elites cloistered in the bubble of Washington, D.C. might attribute high prices to nefarious gougers, while shoppers in rural Ohio might blame the president’s policies. This urban-rural inflation gap in which rural dwellers are subjected to higher prices than city residents has been documented and could encourage people in rural areas to lambast Biden for this discrepancy.

Regardless of the finger pointing, the president has the ultimate responsibility to communicate how the economy is improving on his watch while showing empathy for people struggling with inflated prices, high interest rates on credit cards, and unaffordable mortgage rates.

Going back to the stagflation that occurred under President Jimmy Carter in the 1970s, the American people have a tendency to blame the chief executive for their empty pocketbooks. Although some claims are based on inaccurate information, the perception of a bad economy can cost an incumbent the election. It will be up to Biden and his surrogates to convince the public that the economy is better today than it was under President Donald J. Trump. Simply blaming high prices on fake news and gougers may not win the argument—or the popular vote.