Majority of Americans wrongly believe US is in recession

Nearly three in five Americans wrongly believe the US is in an economic recession, and the majority blame the Biden administration, according to a Harris poll conducted exclusively for the Guardian. The survey found persistent pessimism about the economy as election day draws closer.

The poll highlighted many misconceptions people have about the economy, including:

  • 55% believe the economy is shrinking, and 56% think the US is experiencing a recession, though the broadest measure of the economy, gross domestic product (GDP), has been growing.
  • 49% believe the S&P 500 stock market index is down for the year, though the index went up about 24% in 2023 and is up more than 12% this year.
  • 49% believe that unemployment is at a 50-year high, though the unemployment rate has been under 4%, a near 50-year low.

The poll underscored people’s complicated emotions around inflation. The vast majority of respondents, 72%, indicated they think inflation is increasing. In reality, the rate of inflation has fallen sharply from its post-Covid peak of 9.1% and has been fluctuating between 3% and 4% a year.

In April, the inflation rate went down from 3.5% to 3.4% – far from inflation’s 40-year peak of 9.1% in June 2022 – triggering a stock market rally that pushed the Dow Jones index to a record high.

A recession is generally defined by a decrease in economic activity, typically measured as gross domestic product (GDP), over two successive quarters, although in the US the National Bureau of Economic Research (NEBR) has the final say. US GDP has been rising over the last few years, barring a brief contraction in 2022, which the NEBR did not deem a recession.

The only recent recession was in 2020, early in the Covid-19 pandemic. Since then, the US economy has grown considerably. Unemployment has also hit historic lows, wages have been going up and consumer spending has been strong.

Now we know how uninformed the USA public is about USA economics.

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True. What it also says is that a lot of people aren’t having a good time economically.

DB2

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Ah, but that is the key point. Tell they are still in a Covid 2019 recession as a result of bad economic decisions in 2017-2020 to destroy the US economy with (political party omitted) supply side economics–just like the start of the Great Depression(s) of (political party omitted) the 1800s, 1921, 1929-1940, 1973, 1980-82, 2001-2008, and the current 2017-2024 recession they claim is happening.

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Or they are consuming the wrong news - and it is bipartisan.

Trump supporters and voters with less education were most likely to attribute responsibility for abortion bans to Mr. Biden, but the misperception existed across demographic groups. Twelve percent of Democrats hold Mr. Biden responsible, according to New York Times/Siena College polls in Arizona, Georgia, Michigan, Nevada and Wisconsin and a Times/Philadelphia Inquirer/Siena poll in Pennsylvania.

“I think the buck stops with him, so he had the ability to fight that, and that’s not what I’m hearing that he did,” said Terri Yonemura, 62, an abortion rights supporter in Las Vegas who said she would not vote for Mr. Trump, but is unsure about Mr. Biden, so may not vote at all.


I guess that low-information voter thinks Biden can overrule SCOTUS - or so she heard? There is probably some leftist site out there that is actually promoting such.

On a bit of a tangent, I watched a clip yesterday of a guy who blamed 9/11 on Obama - claimed Obama was not in the office enough to stop it. This guy was clearly not smart enough to come up with that bit of misinformation on his own.

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Geee… I wonder who’s mostly responsible for messaging? For educating the electorate? For, in effect, depicting and defining things for The Public? Geee… I wonder…?

True. What it also says is that a lot of people aren’t having a good time economically.
DB2

This can be said, anytime anywhere. Remember the 1930’s? Tons of out-of-workers and buddy-have-ya-got-a-dimers. And some people made millions. And how about the Go-Go 90’s? First time the general public heard about actual Billionaires. Lots of high tech money being made. And many many many people where serially thrown out of work when all those flash-in-the-pan software companies flashed and flamed-out. So, yes, I guess some people are always out of work no matter how good things get. But it’s not the same people.

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It isn’t showing up in the numbers they are still spending. The jobless numbers are still at a historical low. The stock market is at a historical high. Inflation coming down.

I think it has to do with interest rates. Most people liked interest rates at 1 percent which everyone who understands anything knows that is not sustainable.

Andy

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It is probably safe to say “everyone” wants more money for themselves, and everything they want, to be cheaper, because they want more. Sort of like farmers who always declare the weather to be the worst ever, no matter what the weather is, and cry about how hard it is to make ends meet as a farmer.

Steve

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Depressing. We’re reaping what our poor education system has sowed. The future is bleak.

You have to be optimistic, this to shall pass. They can’t keep the lie going, when the cult turns on the leaders, it gets very ugly for the cult. It always turns.

Andy

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It’s not just being uninformed, it’s also a reluctance to learn and be open to differing opinions. I remembering the good ol’ days when the stupid people knew enough to keep their dumb mouth shut, or risk embarrassment.

“It’s better to keep your mouth shut and appear stupid than open it and remove all doubt” has been replaced with “Say it loud, I’m dumb and I’m proud”

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What I love is the number of people who think that they’re doing fine economically but everyone else is having a tough time so the economy is lousy. It goes back a lot to social media and the influence that certain public figures have over us all.

An article in the Atlantic several years ago remarked on a part of this phenomenon and it seems it has only intensified since.

Pete

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Oh my, of course they can. Fox News has been at it since the 1990’s and shows no signs of slowing down; indeed it’s proliferating into Alex Jones and similar all over the place.

This cult is not going to turn on its leaders. It happened in the past because people were forced to confront the truth; that is no longer true. With the kinds of news silos that have been erected no one ever needs find out anything that doesn’t fit their already established beliefs. And the amount of mis- and disinformation pingponging around is proof of it.

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Irregardless of the news, people know how they’re doing. They might not follow the stock market or the index of leading economic indicators, but they do know about their rent/mortgage payment or the cost of buying a used car. Later comes the question of causation and blame. A vast majority of people have no idea about fiscal stimulus or the state of the Fed’s balance sheet (or even what it is).

DB2

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“They” is everyone, though. So I think “they” can.

We’ve kind of sorted into groups advocating very different economic policy models. Group “A” believes that the current economic system is broken, and that dramatic - even radical - changes are necessary for the economy to genuinely benefit everyone. Group “B” believes that the current economic system is really good, and opposes radical change.

So when Group “A” is in a position to implement its policies, everyone is telling people that while things might be good for them, the economy is bad for everyone else. Group “A” is leading, but they need people to believe that other folks are suffering under the economy - else their policies are unnecessary. Group “B” needs people to believe that the economy is bad, too, else they can’t get into power to stop Group “A.” No one has an incentive to tell people that the relatively strong economic position that they themselves feel is actually pretty widespread.

So what’s to stop that from persisting?

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Everything has a beginning and ending. Just going back to the civil war, Spanish American War, World War 1, World War 2, Korea War, Vietnam war. On and ON and ON.

So tell me why do you think this will go on forever? When have you seen a populist movement that has never burned out?

Andy

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So tell me why do you think this will go on forever? When have you seen a populist movement that has never burned out?
Andy

Yes, but some of them can take a looong time to burn out. I’m trying to remain as hopeful as you seem to be

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I’m going to put on my optimist hat.

I think you need a Group “C” - people who believe the economic system isn’t completely broken, but realize that it needs to be tweaked. As with most social systems, responsible moderates can bring the extremes to the table.

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Yes, no one here thinks everything is fixed in place forever, thanks for the note. But populist leaders can go on for an awfully long time; Castro lasted half a century. Huey Long for less than that, although he was eventually assassinated. Andrew Jackson did untold damage in his fairly short reign.

How long was Juan Peron in place?

Fine if you want to I wait 20 or 30 years. Some of us have a shorter timetable.

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I would say the US tariff war upon China is populist in nature.
2018 to…ongoing.
How could the US tariff war be populist? Its US [worker class] vs THEM [elites]. In the USA globalization crushed manufacturing jobs and US supply chain jobs -not solely but in conjunction with automation.
Those unaffected receiving much lower pricing on goods. The tariff war & return to the US of certain sectors protect US jobs & products; keeping out foreign competition.

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[post deleted due to errant double post]