As more families become pessimistic about the future, the percentage of Americans who anticipate the economy to improve in 2022 is rapidly declining. The Associated Press-NORC Center for Public Affairs Research survey said only 35 percent of Americans thought the US economy was healthy. Meanwhile, 65 percent of the respondents said it was terrible. The same survey indicated 45 percent of Americans believed the economy went well last month. However, the numbers are now comparable to where it was at the start of 2021. When asked whether they expected the economy to improve in 2022, 47 percent answered they thought it would deteriorate.
US Economy Declining Due To Different Factors
Different factors caused the economy to decline throughout the year. According to the Centers for Disease Control and Prevention (CDC), the COVID-19 Delta variant boosted the number of fatalities and infections countrywide, with the current death toll standing at 743,410. Despite the fact that the number of cases has steadily dropped and the vaccination rate in the United States has increased, the struggle against COVID-19 is far from over.
After implementing a large stimulus measure earlier this year, and via its efforts to get more Americans vaccinated, the Biden administration has emphasized the economic recovery’s strength. However, the effects of COVID-19 on global supply networks and the pace with which the economy recovered left many firms unprepared to handle a surge in demand.
Inflation has risen to its highest level in decades as a consequence of continued supply issues and rising government expenditure. According to both the Consumer Price Index (CPI) and the Personal Consumption Expenditure (PCE), prices for actual products like food and energy have risen in the recent year.
Pessimism Not Reflecting Well With Current Administration?
According to the poll, this growing pessimism does not speak well for President Joe Biden’s administration. According to an AP-NORC survey, 58 percent of Americans disagree with Biden’s economic management. Meanwhile, the FiveThirtyEight project said 43.8 percent disapprove of his handling of COVID-19.
Economic pessimism has crept in even within Biden’s Democratic Party, with just 51 percent of identified voters believing the economy would improve. Republicans, on the other hand, predict that the economy will continue to deteriorate before improving.
These figures seem to have struck a chord with the President, Axios said. Biden is banking on Congress approving two multibillion-dollar spending packages in the run-up to the 2022 midterm elections, which he expects would give his party a legislative triumph. The government has also taken steps to alleviate supply chain bottlenecks that are causing supply shortages and inflation in the United States.
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