How Do People Understand Economics?

Shawn and Matt raise some good points about the need for a more compelling progressive economic narrative. Before venturing into a discussion of messaging, it would be beneficial to reflect upon contextual factors that may shape the reception of any economic narrative, especially on the state and local levels. Four factors in particular are worthy of consideration:

1) Limited popular understanding of economics
Not only is economics often poorly taught in schools, but there also are few outlets that help adults develop economic literacy. The business sections of daily newspapers, for instance, generally confine themselves to the stock market and corporate affairs. Limited knowledge, in turn, leads a surprising number of people to fail to perceive issues like labor market policy as actually being about economics.

2) A barrier of fear
In communities negatively impacted by economic change, fear often forms a barrier to change. In my home state of North Carolina, for example, some of the greatest resistance to raising the minimum wage came from communities with high concentrations of low-wage work. Many of these communities have proved willing to accept the argument that a higher minimum wage will destroy jobs and leave people worse off.

3) A cultivated sense of helplessness
Many individuals, even those with some economic literacy, too often view the economy as a natural force that is beyond the ability of anyone to manage or control. Conservatives have worked to cultivate this mindset, which fosters a sense of helplessness.

4) Unintended consequences
In a state like North Carolina, discussions framed in terms of job quality often open the door to positive discussions of economic affairs. The problem comes when people draw the wrong conclusions. For example, people may understand that the growth of low-wage work is a problem, but the conclusion that too often is drawn is that immigrants, not policy choices or structural factors, are to blame.