Half of Americans Report They are Worse Off, the Highest Percentage Since the Great Recession

Gallup Poll released Wednesday showing that half of Americans think they are financially worse off than they were a Year Ago, which is the highest level of decline reported since the financial crises.

These results are extraordinary.

“Since Gallup first asked this question in 1976, it has been rare for half or more of Americans to say they are worse off. The only other times this occurred was during the Great Recession era in 2008 and 2009,” Gallup News .

The survey results, which were taken between January 2nd & 22nd, show the severe impact of inflation on many Americans’ financial situations. In 2022, the average hourly and weekly wage fell for the second year consecutively. This was due to higher prices outweighing pay increases. Gallup said higher interest rates and the decline in the stock market also weighed on people’s view of their financial situation.

This is because unemployment has dropped to its lowest level since 1969 and there are more job openings than ever before.

The Americans split 41 percent to 41% last year on their economic status. The year before, they were also evenly divided.

Even though President Joe Biden said that his policies are intended to “build an economy from the bottom up and the middle out, not from the top down,” Lower-income Americans are more likely to say that they were worse off in the second year under the Biden administration. According to Gallup, 61% of households earning less than $40,000 reported that they were in worse shape. Only 26 households reported being better off.

This is an increase from last year’s 41% who said they were poorer.

Nearly half (50%) of middle-income households feel worse off than they did last year. 37% report that their household finances have improved.

Among higher-income Americans, forty-three percent say they are worse off, up 10 points from last year’s survey. Three-quarters of those surveyed said they are more fortunate.

It is possible that partisan politics could be impacting how people view their personal finances. Sixty-one per cent of Republicans believe they are less fortunate than the 37 percent of Democrats. Fourty-seven per cent of Democrats claim they are better off.

Many Americans believe that the worst is over. The survey shows that sixty percent of respondents expect to be more fortunate in a year. Twenty-eight% anticipate being worse off. Gallup found that this optimism is shared by all income levels. Americans are still optimistic about the economy, despite inflation and unemployment expected to increase and interest rates rising. However, economic growth is expected to continue. Stock prices are expected to fall.