One of the most interesting comic book characters of all time is not one of its heroes but one of its villains. The Joker, initially a psychopathic nemesis to Batman, has emerged in popular culture as an unfeeling sadist whose perpetually artificial smile hides trauma and damage. The cover expresses joy while the underbelly bemoans the struggle. Sounds like a metaphor for the US economy.

The surface of the economy is filled with a shiny gloss. The President repeatedly declares that the war in Iran is over and that we won. Meanwhile Iran and the US trade missile attacks, and the US declares progress in negotiations to end the war (yes, the same one that is over and we won). And the Strait of Hormuz, the source of 20% of the world’s oil, a major source of jet fuel in Europe, and 30 – 35% of the world’s supply of helium (used in aerospace, semiconductor manufacturing, as well as MRI and CT production), remains effectively closed (traffic down 95%) despite the claims of the US that it will escort ships through the strait. But the happy talk from the White House was enough to reduce crude oil futures by 6% for the week. And happy talk was all the stock market needed to reach new highs.

But underneath is weak underperformance. This morning’s report on unemployment showed that employment has risen only 300,000 for the year, a far lower pace that the post-pandemic levels seen in 2023 and 2024 (2025 growth was an anemic 185,000 for the year). At the same time, the civilian labor force participation rate has still not recovered to pre-pandemic levels and the underemployment rate (those struggling to find full-time work or working part-time for economic reasons) is climbing to levels we more frequently see during economic slow-downs. A telling statistic regarding the state of employment in America – one in three men are not working (but aren’t counted in the ‘unemployment rate’ because they have left the workforce altogether).

Perhaps this is why the University of Michigan’s consumer sentiment index has fallen to its lowest mark ever. Gas prices continue to rise at the pump (with the West coast leading the charge, largely due to its lack of refining capacity and pipelines through the mountain West, but with states like Arizona, Ohio and Michigan close behind). Core CPI (excluding energy and food) is stuck at 2.6%, and wages are barely keeping up (if that). Perhaps that is why consumer credit is ballooning – increasing at a rate not seen since the post-pandemic inflationary cycle. In fact, revolving credit (credit cards with high interest rates) is up 30% in less than 5 years. Add those costs to the $11 – 13 billion more that Americans are spending on filling up their gas tanks each month, and you can see why they lack confidence in the economy.

No matter how many happy faces are painted on the US economy, it cannot conceal the structural damage in the scaffolding. And no array of spin is going to convince Americans otherwise.

And the national disgrace continues…