Brendan Smialowski AFP | Getty Images Americans have some of the most negative views of the economy since recovering from the Greater Financial Crisis, and some of their behaviors are consistent with those seen only during the recession, according to the latest CNBC All-America Economic Survey. Amid rising inflation, 47% of the public say the economy is “poor”, the highest number since 2012. Only 17% rate the economy as excellent or good, the lowest since 2014. Only one in five Americans describes their personal financial situation as “moving forward”, the lowest number since 2014. Most say they “remain in place” and 1 in 10 say they are “falling behind”. Meanwhile, 56% say there will be a recession next year, a level reached in the survey only in a real recession. “Previously the anxiety was more about what was going to happen in the economy and now we have moved to a new place where we are much more pessimistic about what is happening right now,” said Micah Roberts, a fellow at Public Opinion Strategies. and the Republican pollster for the survey. “There is no overwhelming pessimism in this in this research. It is on every page and it is inevitable.” The survey of 800 Americans nationwide was conducted from April 7 to April 10 and has a margin of error of plus or minus 3.5%.
The negativity that prevails
The prevailing pessimism is clearly dragging the American views on President Joe Biden. In fact, nothing seems to work in Biden’s presidency from the point of view of the public. The president’s approval rating fell to a new low of just 38%, with 53% disapproving. Biden’s -15% net approval rating is measurably worse than his -9% approval rating in the December CNBC poll. Biden’s acceptance rating in the economy fell for the fourth consecutive survey to just 35%, with 60% disapproving, putting the president 25 points deep under water. Zoom Icon Arrows pointing outwards The president saw a double-digit drop in economic acceptance among the key constituencies that brought him to power: women aged 18-49, people of color and young Americans aged 18-35 compared to a year earlier. The president’s handling of the war in Ukraine is hardly better, with 40% approving and 49% disapproving. His new proposal to tax unrealized profits splits the country in half with 43% in favor and the exact opposite in proportion.
Inflation as a bipartisan focus
Jay Campbell, an associate at Hart Research and the Democratic research pollster, said the problem for Biden was that the issue of inflation was bipartisan. “The cost of living has just driven away everything else, including Covid. And part of the reason for that is that there are behaviors about the economy that are largely a partisan phenomenon,” he said. “It’s not a case of inflation, or at least not right now. It’s a top issue for Democrats, independents and Republicans.” Zoom Icon Arrows pointing outwards Inflation was selected by 48% of respondents as one or two of the top issues facing the country, an increase of 9 points since October. The war in Ukraine came in second with 31%, followed by immigration and border security and jobs and crime. Coronavirus, which some time ago was by far the most important issue, ranked eighth with just 14%, down 25 points. There is a lot of responsibility for inflation and apparently almost no one is spared, except perhaps former President Donald Trump. Indeed, 69% of the public blame the supply chain disruption, while 66% say it is the result of companies taking advantage of the situation. Meanwhile, 55% point to Russian President Vladimir Putin and 49% blame President Biden’s policies. Just over 3 in 10 respondents say it is the Federal Reserve and 28% cite President Trump’s policies. Americans, meanwhile, are saving as much as ever because of higher prices, with 84% cutting spending in some form to make ends meet. He starred in 62% reporting a reduction in entertainment spending such as going to movies, concerts and restaurants. Most Americans also say they travel or drive less and are immersed in savings. But only 16% say they have been motivated by higher prices to buy an electric car. The only good news comes from the expectations of 52% of the public that their house prices will rise next year, the highest level since 2017. However, this optimism could be questioned in the coming months by higher mortgage rates. Among the participants, 37% see their salaries increase by an average of 5% over the next 12 months, the best number since 2019. Unfortunately, 82% see their cost of living increase.
