Democratic party needs to listen and at the very least fluff up a response that people in this situation feel heard. Even if there nothing they can really do. It's all about appeasing emotions.
Also, maybe look into a little history while youre at it - the economy is not even close to the worst one ever, see: 1930s, 1970s, the turn of the millenium, and 2008-2012 for examples in living memory.
I'm tired of pretending it's not. Want to call me a coastal elite like it's a slur? I'll wear it with a badge of honor. We are better than you at economic planning and becoming prosperous - also with defending social freedoms (i.e. legalizing the mushrooms).
We lost the low information voters. Bad from the perspective of winning elections but good from the perspective of self selecting your friends and people you associate with. The democrats really are a social club.
This is what matters.