A new poll conducted by Gallup showed that half of Americans believe their financial situation has worsened compared to last year, marking the highest level of decline since the financial crisis.
The results of the survey taken between January 2nd and 22nd indicate the impact of inflation on the finances of many Americans, as average hourly and weekly wages decreased for the second consecutive year in 2022, with pay increases unable to keep up with rising prices.
Additionally, the decline in the stock market and higher interest rates also played a role in people’s perception of their financial situation.
Despite the current low unemployment rate, which is the lowest since 1969, and record-high job openings, lower-income Americans are more likely to say they are worse off. In fact, 61% of households with incomes under $40,000 reported that they were worse off, while only 26% reported being better off. This is a significant increase from last year, when only 41% of lower-income Americans reported being worse off.
The survey also indicated that partisan politics may influence people’s evaluation of their personal finances, with 61% of Republicans saying they were worse off and 37% of Democrats reporting the same. On the other hand, 47% of Democrats reported being better off.
Despite these findings, many Americans remain optimistic and believe their financial situation will improve in the future. Sixty percent expect to be better off in a year, and this optimism extends across all income levels. However, there are concerns about the future of the economy, with expectations of rising inflation, unemployment, and interest rates, as well as declining economic growth and stock prices.
In conclusion, the latest Gallup poll shows that half of Americans believe their financial situation has worsened compared to last year, marking the highest level of decline since the financial crisis. The results indicate the impact of inflation, higher interest rates, and the decline in the stock market on people’s finances.
Lower-income Americans are more likely to report being worse off, and partisan politics may also play a role in people’s evaluations of their personal finances. Despite these findings, many Americans remain optimistic about their financial future.