Plain English with Derek Thompson Why American Happiness Just Fell Off a Cliff
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May 8, 2026 
David Wallace-Wells, journalist who writes about climate and large‑scale risks, and Morgan Housel, bestselling financial writer focused on behavioral money matters, explore why Americans feel worse despite prosperity. They discuss the post‑COVID collapse in happiness, pandemic trauma, collapsing trust and social isolation, inflation’s psychological weight, and social media’s role in inflating expectations and comparisons.
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Inflation Feels Personal And Immediate
- Inflation is psychologically salient because people perceive everyday prices in real time.
- Morgan Housel explains items like gas and rent register immediately, so inflation's bite feels constant even if macro metrics are opaque.
Housing Created A Bifurcated Economy
- The housing market created a sharp generational split between those who bought before 2020 and those who couldn't.
- Housel notes owners who saw massive gains feel wealthy while recent buyers face unaffordability, fueling resentment and distrust.
Social Media Inflated Expectations By Making Everyone A Peer
- Social media expanded peer comparisons from celebrities to apparent peers, inflating expectations.
- Housel contrasts MTV Cribs (non-peer comparison) with social feeds that make viewers feel like they're failing versus their peers.
