Over 50% of Americans believe economy is in recession, survey

More than half of Americans think the country is in a recession and the economy is shrinking, despite experts saying there hasn’t been one since 2020, according to a new Harris poll released yesterday by the Guardian.

A recession is defined as a period of negative economic growth for two consecutive quarters or more.

The survey conducted this month among 2,119 adults showed misconceptions about the economy.

• Around 56% think the US is in a recession despite gross domestic product (GDP) growth, and 55% believe the economy is shrinking.

• Nearly 49% believe unemployment is at a 50-year high, while it has been under 4%, near a 50-year low.

• Almost 49% think the S&P 500 is down for the year, though it increased 24% in 2023 and is up over 12% this year.

• More than 70% believe inflation is on the rise.

Moreover, 58% blame President Joe Biden and his administration for what they perceive as a worsening economy. It will be a challenge the current administration will find tough to overcome as over 60% of respondents are skeptical about economic news.

Why?
Despite easing inflation, increasing food, grocery and fuel prices make people think the economy is in a downward spiral. In reality, the rate of inflation has been fluctuating between 3% and 4% a year, a sharp decline from its peak of 9.1% in June 2022.

As the presidential election nears, inflation plays a major role in voters’ decisions. The poll shows 70% of Republicans and 39% of Democrats think Biden is mismanaging the economy. The hashtag #Bidenflation is always visible on social media.

The overall sentiment indicates a significant gap between economic data and public perception, posing a challenge for Biden’s re-election efforts.