Paul Krugman makes an important point today that I’ve been dying for someone with a big perch to make about the economy. The constant media refrain that the “American public” is deeply dissatisfied with everything, especially the economy ,does not tell the whole story: The economy is good, but Americans feel bad about it. Or do they? The more I look into it, the more I’m convinced that much of what looks like poor public perception about the economy is actually just Republicans angry that Donald Trump isn’t still president. Last year was a very good one for the U.S. economy. Job growth was strong, unemployment remained near a 50-year low and inflation plunged. Some reports I’ve seen suggest that this favorable combination was somehow paradoxical and contrary to economic theory. In fact, however, it’s exactly what textbook economics says to expect in an economy experiencing an improvement in its productive capacity. […] Furthermore, the source of the positive supply shock is obvious: The economy finally got past the disruptions caused by the Covid-19 pandemic. Working out those disruptions took longer than almost anyone expected, then happened faster than almost anyone expected, but there’s no great mystery here. If some prominent economists denied that such a thing was possible, well, that’s their problem. What is a mystery is why the improving economy hasn’t been reflected in public perceptions. There have been some fairly elaborate analyses of the divergence between economic fundamentals and consumer sentiment, but here’s a simple version: The blue line…