Americans Are Pessimistic About the Economy
Jessica Rettig

Although statistics show the economy is on the mend, an increasing number of Americans are pessimistic about the economic outlook over the next year.

The survey, conducted late last month, found that 62 percent of Americans -- 8 percentage points more than in April -- say that the nation is "on the wrong track." Forty percent think that economy will get worse over the next year, up from 27 percent who held that view four months earlier.

This pessimism is eroding President Obama's political standing, with his job approval rating dropping by 10 percentage points since last summer. Americans now are statistically split about whether they approve or disapprove the job that he is doing; 46 percent approve, while 49 percent disapprove.

Even so, more people still trust President Obama (42 percent) than Republicans in Congress (37 percent) to find economic solutions. The president's edge, however, has narrowed dramatically in the past year from 21 percent in September 2009 to 7 percent in April and to 5 percent in the most recent results.

The Heartland Monitor Poll, sponsored by Allstate Corp. and the National Journal, sampled 1201 adults by phone between August 27 and 30 on their views about the economy. The results have a margin of error of plus or minus 2.8 percent.

In a year in which the Tea Party movement is pressing for less government intervention, sixty-one percent say that the government should play an active role in the economy, though many express skepticism that government can do it effectively. An even larger share, 68 percent back either government support for critical industries or protectionist measures against imports.

Facing economic uncertainty, fewer people trust that the country's institutions will help. Asked to compare their perceptions today with those of a year ago, 58 percent of people are less confident in elected officials in Washington, 54 percent are less confident in corporations, and a similar majority has lost confidence in major banks. Leadership, according to 60 percent of Americans, should come from a joint effort between the government and business, rather than from one or the other.

What explains the disconnect between the economic recovery underway and the pessimism of many Americans? For many, it's personal experience. Seven out of 10 of those surveyed said that they know someone -- a close friend or family member -- who has been laid off since the economy first began declining in 2007. Twenty-one percent say they themselves are looking for a job.

According to panelists discussing the poll, these personal perceptions do matter and will impact how the nation moves forward. The recession isn't over until the public says it is, said Republicanpollster Glen Bolger. "It's really more about what the public perceives than what economists say," he said.

The poll also found that many Americans say they are moving toward a more conservative approach to their personal finances as a result of the recession. For example, 8 in 10 Americans say that reducing their own debt and learning more about their finances are extremely or very important. Three quarters say the same about saving more. Only 34 percent say that spending more money is very or extremely important for economic recovery.

While most of the Heartland Monitor Poll's trends appear negative, Tom Wilson, president and CEO of Allstate, said that the fact that Americans are so concerned about the economy in the first place and are looking for solutions is reason for optimism. "Americans get it. They understand the economy. They understand globalization. They understand that they have a responsibility as well," he said. "That's a good thing, as opposed to just drifting along and blaming it on somebody else."

Americans Are Pessimistic About the Economy

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