Other findings on economic attitudes include:
- Heading into 2008, one in five Americans (21%) felt more secure about their financial situation compared to the previous year. This year just one in ten (12%) say that;
- There aren’t any quick fixes expected for the economy as half of Americans (52%) say they think the economy will get worse in the coming year and only 18% think it will get better. A year ago, a plurality of Americans (45%) thought the economy would get worse in 2008 (and, obviously, they were right);
- Looking at personal finances, attitudes are a little more positive. Two in five Americans (41%) believe their personal finances will stay the same in the coming year, one-quarter (27%) say they will get worse and one in five (22%) believe they will improve. Going into 2008, people were somewhat, but not much, more positive as 31% said they thought their personal finances would improve;
- Looking to 2009, over half of Americans (55%) say they expect to cut back on their household spending while 45% expect to pay down their level of debt and 42% say they expect to save more in the year ahead. One-quarter of Americans (24%) will get rid of one or more credit cards, 21% say they will save more for retirement and 16% say they do not expect to do anything different financially in 2009; and,
- When it comes to responsibility, over three-quarters of Americans (77%) say they themselves are extremely/very responsible for how financially secure they will feel in 2009 while just under half (48%) say Congress is extremely/very responsible and 46% say the President is extremely or very responsible.
Perceptions about the Economy by Political Affiliation
With a new Democratic President taking office this month and a new Congress with an even stronger Democratic majority than the previous one, Democrats should be feeling more optimistic about the economy. But, in reality they are not feeling any better about it than Republicans. Half of Republicans (50%) expect the economy to get worse in the coming year as do 52% of Democrats and 56% of Independents. Over one-quarter of both Republicans and Democrats (27% each) say they expect their personal finances to get worse this year. In comparison to last year, half of Republicans (52%) say they feel less secure about their financial situation compared to 61% of Democrats who feel the same way.
Perceptions about the Economy by Generation
In looking at this by generation, Echo Boomers (those aged 18-31) are the ones least concerned about the economy, but they still have concerns. Two in five Echo Boomers (39%) say they expect the economy to get worse in the coming year, compared to over half of all the other generations. This youngest group is also the most optimistic about their own personal finances this year as one-third (32%) of Echo Boomers say they will improve compared to 21% of both Gen Xers (those aged 32-43) and Baby Boomers (those aged 44-62) and only 14% of Matures (those aged 63 and older).
So What?
As Americans wait for an economic stimulus plan to be introduced, debated, and implemented there is a strong sense of unease on what the year will bring. Most people are not expecting any quick fixes and they believe that the economy will continue to get worse as the year progresses. If these attitudes become more firmly entrenched, spending will continue to decline and vulnerable industries, such as the automakers, will be in even worse shape. The new President will have a short time period in which to do something to encourage Americans to spend and bolster the economy. Otherwise, it will be another long, dark year of more bad economic news.
