Northwoods Reporter

Americans are less confident about the economy than they were a year ago, even as it nearly bounced back to its level at the start of the COVID-19 pandemic, the New York Times reported.

“There was a lot of optimism a year ago," Harvard economist Karen Dynan told the Times. "We’d gotten the vaccines faster than we’d thought, and we thought our lives were going to be able to go back to normal, and people just expected the economy to come along with that. And maybe that was a little naïve.”

New Gross Domestic Product figures reported by the New York Times showed near full economic recovery since the start of the pandemic. However, recent price gains appear to diminish a majority of that progress.

In a recent Gallup Poll, 67% said the economy was getting worse, while only 29% believed it was improving, the story said.

According to consumer expectations data produced by the Federal Reserve Bank of New York in December 2021, 26.3% of consumers expect to be financially worse off in December 2022. Similar data from the end of 2019 revealed only 9.9% of consumers felt this way. Inflation expectations tracked by the same survey have surged as well.

Following the release of gross domestic product (GDP) data, President Joe Biden announced the rebuilding of the American economy “with the fastest economic growth in nearly four decades, along with the greatest year of job growth in American history,” the Times said. 

Yet, inflation is absorbing much of the recovery Biden boasts about. As wage increases become more prevalent, workers are finding their larger paychecks aren’t benefiting them any more than their previous smaller ones, the story said.

In light of poor economic conditions, Americans’ opinion of political leaders have shifted since the 2020 election. A national poll distributed by McLaughlin & Associates in January 2022 surveyed Americans’ outlook on the current leaders of the Biden administration. On average, 57% believe Biden is an unfavorable leader, while 42% say he is favorable. By the same token, 56% of people believe Vice President Kamala Harris is unfavorable, while 39% say she is favorable. Opinions of Nancy Pelosi followed a similar pattern, as 61% say she is unfavorable and 33% say she is favorable. In their monthly survey of national trends related to the American political environment, McLaughlin & Associates seeks insight to voters’ outlook on and opinion related to a number of current topics. The January 2022 survey was conducted from Jan. 13 to 18 and polled 1,000 likely general election voters.

Inflation continues to raise prices at the gas pump. According to current AAA reports, there has been an observed 5% increase in average gas prices over the last month nationally. The current national  average is $3.49 per gallon for regular gas, while a month ago, the average was $3.31 per gallon.

In the 2020 election, the state of Wisconsin voted for Biden and Harris for president and vice president.