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Vibecession is a neologism describing a disconnect between a country's economic indicators and the public's negative perception of the economy. The term was coined by economic commentator Kyla Scanlon in a June 2022 newsletter discussing Americans' attitudes toward inflation and recession fears.[1] A portmanteau of "vibe" and "recession", the term refers to situations where economic data shows growth or stability, yet people feel as if they are living through a recession. Scanlon described it as "the vibes of a recession, but maybe not the economic reality of one (yet)."
Some interpretations of the term suggest it represents a broader shift in how economic narratives and emotions shape real-world outcomes. For example, a 2025 article published on the platform *The Vibe Economy* characterizes vibecessions as a by-product of the emerging "vibe economy", where stories and collective sentiment carry economic weight, and widespread anxiety can lead to reduced spending, delayed investment, and real market consequences.[2]
Definition
The term was coined to describe public perception of the American economy during the presidency of Joe Biden.
The United States was described by some journalists and economists as entering a period of "vibecession" in early 2022, which continued into 2023 and was speculated by some to taper off by early 2024.[3][4][5][6][7]
Surveys in 2024 revealed that many Americans continued to feel economically insecure. For example, 59% of adults surveyed by Affirm Holdings in June 2024 believed the country was in a recession, with March 2023 often cited as its start date.[8] This perception persisted despite strong GDP growth and declining inflation, with many Americans expressing anxiety about the job market instead.[9][10]
Media influence and psychological explanations
Some commentators attributed the vibecession to the role of negativity bias in media consumption, where consumers are more drawn to alarming headlines than positive news.[11] Others cited the influence of economic forecasts predicting a recession in 2023 that never materialized, arguing that media narratives shaped public expectations disproportionately.[12]
Analysis and criticism
Critics of the term have called it dismissive or condescending. In a March 2024 article for The Daily Telegraph, journalist Ben Wright argued that the disconnect between sentiment and statistics was easily explained by inflation, higher prices, and rising debt levels. He noted that public optimism plummeted immediately after price spikes in mid-2022.[13]
Similarly, economist Ruchir Sharma argued that the U.S. economy's flaws were real and long-term. Writing in the Financial Times, he pointed to intergenerational inequality and stagnant social mobility, observing that only a third of Americans feel better off than their parents.[14]
Others highlighted persistent inequality. Cetera Financial Group's Gene Goldman and JP Morgan's Joyce Chang both cited a widening gap between high- and low-income households, arguing that headline statistics fail to capture this disparity.[15]
Andrew Keshner of MarketWatch noted that Americans’ personal savings rates remained low despite easing inflation, suggesting the vibecession might reflect broader economic instability in households.[16]
Alternative interpretations and cultural analysis
A 2025 article on The Vibe Economy suggested that the vibecession is not a misreading of the economy but a sign that conventional measures like GDP and inflation fail to capture lived experience. The article argues that modern economies are shaped as much by perception and emotional volatility as by data, and that public trust in institutions has declined.
It positions the vibecession as part of a broader shift toward what it calls the "vibe economy," where stories and feelings carry economic weight. According to the article, when millions of people feel anxious, they may cut spending, delay investments, or withdraw money—turning bad vibes into real economic consequences.[2]
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