With stocks hitting near record highs and a surprising surge in growth last year, one might expect U.S. citizens to be overjoyed about the present state of the national economy. However, this is not the case. Although there is a slight improvement in public sentiment, the majority of Americans still believe the economy is in a poor state.
The State of the National Economy
A recent poll conducted by The Associated Press-NORC Center for Public Affairs Research reveals that only 35% of U.S. adults consider the national economy to be in a good state. This is a slight uptick from the 30% who held this view back in late last year and a significantly better figure than the 24% who held this opinion a year ago. Despite this gradual increase in optimism, a significant 65% of adults still perceive the economy as being in a poor state. However, this figure also represents an improvement when compared to the 76% who held this view a year ago.
Impact on the Presidential Election
This public sentiment towards the economy could play a crucial role in the upcoming Presidential Election. The economy is consistently rated as a top issue by voters. Interestingly, despite many Wall Street and academic economists predicting a recession as a consequence of efforts to lower inflation, data shows that growth actually accelerated last year. Furthermore, inflation has returned closer to the Federal Reserve’s 2% target.
Public Perception of Presidential Performance
Despite positive economic indicators, President Joe Biden is yet to see a significant increase in support. The same poll places his approval rating at a mere 38%, a figure that has remained largely consistent over the past two years. His approval rating on handling the economy is only slightly lower at 35%.
The public’s perception of the economy is often based on personal experiences and observations. For some, it is gauged by their grocery bills, gasoline prices, housing prices, or job prospects. For others, it’s about the rise in federal debt or the increase in migrants illegally crossing the U.S. southern border.
Conclusion
In conclusion, while the economy has shown signs of improvement over the past year, this has yet to translate into substantial support for the current administration. A significant portion of the population still perceives the economy to be in a poor state. This sentiment, coupled with the fact that the economy is a top election issue for voters, could prove crucial in the upcoming Presidential Election. Regardless of the hard data presented, public sentiment towards the economy seems to be influenced more by personal experiences and perceptions than by economic indicators.
Given this, it remains to be seen if the continued improvement in the economy will eventually result in increased support for the current administration or if personal perceptions and experiences will continue to dominate public sentiment.
