Inflation Takes a Toll on Americans’ Broader Economic Trust

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Inflation
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Inflation impacts blue and red states alike, as prices surge at the fastest pace in 4o years. Yet, based on last Tuesday’s Gallup poll, Democrats are less concerned than Republicans, 35% and 79%, respectively.

On the other hand, 25% of Democrats said they were only concerned about the significant cost growth, while only 5% of Republicans have a more challenging attitude towards inflation.

Gallup conducted random interviews of 1,017 American adults between March 1 to 15 across all 50 states and Washington D.C. The results revealed that Americans’ utmost economic concern is the rising cost and damaging the widespread morale in the economy.

The data revealed a surprising gap in how Americans view the far-reaching headwind confronting economic recuperation. More concerning was an 0.8% month-over-month boost; last year’s events shaped the one-year assessment. This one-month increase suggests that the inflation did not ease during early 2022.

The rationale behind the contrast between the Democrats’ and the Republicans’ inflation points of view is that Republicans tend to be older Americans. This is because they lived through the inflation crisis of the 1970s and early 1980s, according to Yahoo!. Conversely, the Democrats tend to be younger Americans who have mostly lived through the inflation period below the 2% Fed target. Considering how tough the inflation that rocked the economy in the 1970s, it makes perfect sense that older Americans are fearful of replication.

inflation
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Republican legislators criticized President Joe Biden’s spending program. They contend that his pandemic lawmaking whim siphoned too much hard cash into the economy, according to Yahoo.

The Democrats have a more sloppy perspective on inflation than the Republicans. According to a Gallup report, only one-third of Democrats are concerned about the economy compared to more than three-quarters Republicans. Nonetheless, Republicans (33%) and Democrats (25%) agree that the labor demand is good and have little to worry about unemployment.

Approximately 17% of Americans mentioned the high cost of living, and 4% raised fuel prices as the most significant issue currently facing the U.S. Together, these sums up to 35% of Americans citing that half of the economic problems are the U.S. top problem.

Concurrently, 68% of American adults name the main problem related to non-economic issues. This concern is led by classifications of criticism of the government administration (22%) and the situation in Ukraine and Russia (9%). Immigration and racism each garnered 5%, and only 3% mentioned coronavirus.

Since the upward trend began, the inflation percentage rose from 2% in 2021 until October to a 17% increase in the past month. The inflation rate persists and is now at its optimum in 40 years.

Gallup’s economic summary shows the lowest morale score since the outset of the pandemic, with 75% saying the situations are getting more threatening. Inflation does not dominate Americans’ perception of the problem facing the country today the way it did in the early 1980s. Still, it is taken a toll on Americans’ broader economic trust over three decades.

Written by Janet Grace Ortigas
Edited by Cathy Milne-Ware

Sources:

The New York Times: Americans, especially Republicans, are getting more worried about inflation; by Jeanna Smialek
Yahoo! Sports: Republicans and independents are way more worried about inflation than Democrats; by Ben Winck & Madison Hoff
GALLUP: Inflation Dominates Americans’ Economic Concerns in March; NY LYDIA SAAD

Featured and Top Image Courtesy of CK, Carl, Carlo, Carlito’s Flickr Page – Creative Commons License
Inset Image Courtesy of Alexander Fox|PlaNet Fox’s Pixabay Page – Creative Commons License

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