Based on a recent study conducted by Bankrate just before the midterm elections, most Americans who say their financial situation worsened since the inauguration of President Joe Biden blame the president and his legislative supporters.
Voters are predicted to be motivated to vote by looking at rising inflation, distribution network constraints, pricey residential real estate, and shrinking retirement accumulations, all of which go in the direction of the Republicans.
Four in ten people in the Bankrate survey said their cash flow is worse now than two years ago; only about two in ten said they are better off and the majority of those in the former group blamed Democrats.
Americans are falling behind on saving for retirement and inflation is making it harder to keep up. According to a new survey from Bankrate, 55% of those surveyed felt they were behind where they needed to be. pic.twitter.com/86h1afWQh1
— Barchart (@Barchart) October 25, 2022
Lead economic expert at Bankrate, Mark Hamrick, noted many individuals are quick to ascribe blame or praise to elected politicians in light of the country’s divisive political climate and the context of a complex, highly dynamic economic scenario.
He went on to say the midterms would be significant because they will determine which party controls the Congress for the next two years; this could have repercussions for the next national election.
Many Americans "are perhaps fixated to some degree on the presidency," Bankrate Senior Economic Analyst @hamrickisms says. "And frankly some lack the nuanced understanding of government and the economy to be able to sort of slice and dice where the blame might actually be cast." pic.twitter.com/FYZLieF3Wl
— Yahoo Finance (@YahooFinance) October 31, 2022
69 percent of those who said their finances worsened blamed Biden at least somewhat, while 71 percent blamed Democrats in Congress.
Of those polled, 54% placed the responsibility on Republican lawmakers. Whereas 93% of Republicans who have a dimmer financial outlook blame Biden, only 30% of Democrats share this view.
The American public also displays a significant amount of pessimism about its economic future.
Hamrick speculated a “bunker mentality” was developing among consumers, with only 26% anticipating financial improvement over the next two years, 32% expecting a financial decline, and 42% expecting their situation to remain unchanged.
It’s logical, given that consumers have been adjusting as inflation eats away at their purchasing power and they brace for a probable worsening of the employment market.
Blame and What is To Come
The Biden presidency tried to pin the blame for the economy’s dismal performance on Republicans, arguing they blocked billion-dollar spending packages on everything from climate change to chip production just before the midterm elections next week.
As the economy grew at an annualized rate of 2.6% in the latest quarter, the White House responded by saying “doomsayers” were “rooting for a fall” and incorrectly asserting a recession is underway.
Biden said in a statement that lowering prices for American households should be a major economic priority.
According to him, the Republican plan in Congress is very different and will increase inflation and the deficit by lowering taxes for the wealthy and huge corporations; it would drive up the prices of medicine, medical care, and power for American families.
Yet, earlier this year, the country fulfilled the rule-of-thumb criteria of a recession when the economy shrank at an annual rate of 1.6% during the first quarter and 0.6% in the 2nd quarter.
The White House responded by downplaying recession concerns, saying only a formal assessment from the National Bureau of Economic Research would indicate the economy was in a lengthy decline.