43 Percent of Americans Say Finances Have Worsened Since 2021: Survey

Shoppers are seen in a Kroger supermarket on October 14, 2022, in Atlanta, Georgia. (Elijah Nouvelage/AFP via Getty Images)

As voters contemplate their choices at the ballot box in November, they are also assessing their pocketbooks, and new research suggests that the state of their finances could play a huge role.

Forty-three percent of Americans say their finances have worsened since January 2021, according to a new survey conducted by Bankrate.

The poll found that fewer than a fifth (19 percent) of Americans report their finances have improved, while more than a third (35 percent) say they have remained about the same.

Bankrate researchers found that there’s a divergence along party lines. More than two-thirds (68 percent) of Republican voters say their financial situation has worsened since January 2021. By comparison, 51 percent of independents and 16 percent of Democrats report comparable trends.

Nearly half (46 percent) of U.S. adults say that they are “less likely” to vote for President Joe Biden because of the economy.

A little more than one-quarter (26 percent) were “more likely,” and 23 percent were neither more nor less likely.

While respondents didn’t pinpoint the candidates’ specific policies they favor, slightly more than one-third (37 percent) said former President Donald Trump would be better for their finances.

Thirty-two percent cited President Biden as preferable for their wallets.

Six percent identified independent candidate Robert F. Kennedy, Jr. as a superior choice for their financial situations.

“I think that partisanship is the primary story here, and as we know, that informs a lot of opinions with respect to different issues,” Mark Hamrick, the senior economic analyst at Bankrate, said in an interview with The Epoch Times.

“People do tend to associate the quality of the economy with the person who sits in the Oval Office, and that is a sort of time-tested reality and tradition.”

Age was also a factor in political support, the survey found: younger individuals tended to favor the incumbent, and older people picked the Republican nominee.

Bankrate recently reported that one-third of workers are living paycheck to paycheck.

Economy Top Issue for Voters

Scores of polls persistently show that the economy continues to be the top issue for many voters.

According to new Gallup findings, 36 percent listed the economy as the most important problem facing the country, followed by immigration (22 percent).

Last week, a Center Square Voters’ Voice Poll found that inflation (45 percent), illegal immigration (36 percent), and the economy (28 percent) were the issues that mattered most to voters ahead of the November election.

President Joe Biden speaks during an event at the South Court Auditorium in the Eisenhower Executive Office Building in Washington on Oct. 23, 2023. (Anna Moneymaker/Getty Images)

Many Americans have a pessimistic view of present economic conditions.

Recent Pew Research Center data found that 23 percent of U.S. adults think the economy is in excellent or good shape, down from 28 percent at the start of the year.

The University of Michigan’s Consumer Sentiment Index weakened for the fourth consecutive month in July as consumers still worry about high prices and economic uncertainty.

“Nearly half of consumers still object to the impact of high prices, even as they expect inflation to continue moderating in the years ahead,” said Joanne Hsu, the surveys of consumers director at the University of Michigan.

“With the upcoming election, consumers perceived substantial uncertainty in the trajectory of the economy, though there is little evidence that the first presidential debate altered their economic views.”

Federal Reserve officials anticipate inflation is on track to reach the central bank’s 2 percent target, with investors planning for the first interest-rate cut in September. However, various metrics suggest that the public thinks sticky and stubborn inflation will be here for a while.

The New York Fed’s June Survey of Consumer Expectations and the monthly University of Michigan report showed a one-year inflation outlook of 3 percent.

Price inflation has eased since hitting a peak in June 2022. However, as policymakers and economists observe the rate of change, consumers are still witnessing their buying power being eroded, Mr. Hamrick notes.

“Elevated prices or the lack of affordability really need to be the focus of the consideration and the conversation, as opposed to inflation, which is a concern for economists and central bankers,” he said.

“But inflation is sort of what brought us here, and lack of affordability or elevated prices are descriptive of the current reality.”

Since January 2021, the purchasing power of the U.S. dollar has tumbled 17 percent, according to the Bureau of Labor Statistics. Additionally, real (inflation-adjusted) hourly compensation for all workers has declined more than 4 percent.

Housing affordability has been another chief concern for voters.

Median existing home prices climbed to an all-time high of $419,300 in May, the National Association of Realtors reported last month.

Median asking rents advanced 0.7 percent year-over-year in June to $1,654, the highest level since October 2022.

The White House has been on a public policy blitz over the past several weeks, announcing new measures to restore housing affordability, from tax credits to rent increase caps.

Whether these efforts will result in lower home prices in the near term remains to be seen, but shelter costs continue to contribute significantly to the consumer price index (CPI).

In the June CPI report, shelter costs, which account for 36 percent of the CPI, rose 0.2 percent and are up 5.2 percent compared to the same time a year ago.