In her opinion piece published in the Washington Post, Megan McArdle argues that many individuals fail to perceive the positive developments of the modern economy, primarily because these advancements are not tangible on a personal level. Despite significant improvements in various sectors, a substantial portion of the population continues to believe that the economy has not progressed over the decades. The root of this misconception lies in what she describes as a 'probability economy', where consumers are inclined to pay for protections against rare events rather than for noticeable improvements in everyday life.

McArdle uses the example of modern automobiles to illustrate her point. The average price of a new car in the U.S. has surged to over $50,000, a stark contrast to the $15,000 average in 1990, which would today equate to around $38,000 when adjusted for inflation. While this price increase might suggest economic decline, she argues that it actually reflects a shift in consumer behavior. Rather than indicating a worsened economic situation, it signifies that consumers are willing to spend more of their surplus income on safer and more advanced vehicles, thereby showcasing improvements in automotive technology and safety features.

Ultimately, McArdle suggests that the perception of stagnation in the economy arises from a disconnect between individual experiences and broader economic trends. As society evolves, understanding and recognizing the benefits of these changes require a shift in perspective, enabling individuals to see beyond personal financial situations and appreciate the broader advancements that characterize the modern economy.