The number of Americans who describe themselves as being in a poor financial situation is growing according to new reports.
- Almost half of Americans report that they are struggling financially. Just a few months ago in March only 37% said the same, according to an Associated Press-NORC Center for Public Affairs Research survey.
- The survey was conducted from October 6 to October 10 and found that 46% of respondents feel their financial situation is poor while 54% say their situation is positive.
- The number who reported positive financial situations was at 62% during the pandemic in 2020, but prolonged high inflation is starting to have an effect on the average household.
- Worsening financial situations and continuing inflation are bad signs for the Biden administration heading into the midterms. President Joe Biden’s approval ratings have also begun to drop.
Why it’s news
Rising inflation has affected prices from groceries to energy bills, but incomes have remained relatively stagnant.
As financial situations for the average American worsen, President Biden’s approval numbers have declined.
Currently, Biden’s overall approval rating sits at 40% with 55% disapproving.
Households making less than $50,000 a year have been particularly affected by the downturn. Only 33% of those households say their finances are in a good situation. That’s down from 50% who said the same in March.
Around 63% of Americans say that they disapprove of the president’s handling of the economy. Despite these numbers, most Americans do not place all of the blame for the bad economy on President Biden. More than half say that the inflation is outside of the president’s control while 44% say that he is the main driver of inflation.
The president has blamed rising prices on the war in Ukraine. Only 25% of respondents feel the country is headed in the right direction.
On Monday, JPMorgan Chase CEO Jamie Dimon said that the U.S. could experience a recession in the next six to nine months due to rising inflation, interest rate hikes, and the war in Ukraine.
Around 65% of Americans believe that the U.S. is currently in a recession. The president told CNN’s Jake Tapper earlier this week that he doubted a recession was in the near future, and that if one were to occur, it would be a “very slight recession.”