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Polls Show Concerns Growing About U.S. Economy

Two recently-released surveys jointly-conducted by ABC News and the Washington Post depict just how negative Americans’ attitudes have become about the economy. Last night, MarketWatch reported that a weekly survey of consumer attitudes on the U.S. economy fell to its lowest level since late 1993. The ABC News/Washington Post consumer comfort index fell 6 points last week to negative 33. According to ABC, the index’s 13-point decline in the past month is “an unsettling sign,” as a 13-point drop occurred just before the 1990 recession and a 14-point drop took place prior to the 2001 recession. The record low for the index, negative 50, was reached in February 1992.

On Monday, Washington Post staff writers discussed a separate ABC News/Washington Post economic survey that was conducted at the end of last month, which showed Americans are more negative now on the economy than at any point in nearly 15 years. According to the poll:

• More than 8 in 10 Americans describe the economy as “not so good” or “poor.”
• Nearly 6 in 10 believe we are already in a recession.
• Three in 10 are pessimistic about their financial prospects for 2008.
• 39% of all Americans now cite the economy and jobs as the number one issue in the 2008 presidential campaign, up 10% in the past 3 weeks. No other issue reached double digits.

On the economic stimulus plan being crafted in Washington, only about 3 in 10 think it will be enough to avoid or mitigate a recession. When asked what they would do with the extra money, 27% said they would put it in the bank, 26% would pay off bills, and 5% percent would pay down debt. Only 20% of respondents said they would spend it. One individual told pollsters, “I’d go buy a hamburger.”

“Would you like fries with that?”

On America’s longer-term prospects, the respondents were evenly divided, with half saying the United States is in a long-term decline and the other half saying the fundamentals of the economic system are basically solid. Two-thirds are optimistic about what 2008 has in store for them and their families.