Many Americans are pessimistic about the future of their economy. They predict a recession, higher debt, and more political divisions. They also doubt that the standard of living will improve. A new study by the Allianz Life Insurance Company of North America shows that the financial situation is worse than it was a year ago.
The report examines three key drivers: inflation, interest rates, and the decline of inflationary shocks over the last 18 months. It projects the S&P 500 will retest its lows from 2022 in the first half of 2023. It also believes the decline in inflation will be the dominant theme in 2023.
Increasingly, Americans are taking out more credit card debt. This may be a sign of desperation, but it’s not necessarily a sign of a recession. Rather, it may be a sign that people are simply drawing down their savings.
More than a third of Americans say inflation is a major financial strain. They also think that income inequality will worsen over the next 30 years.
Many adults also have concerns about climate change. A majority of voters think that politics will become more divisive over the next 30 years. They expect that extreme elements in both parties will influence debates more.
Younger voters are more pessimistic about the future of the economy. They are at the beginning of their careers. They are in an economy that is generally job-rich. However, they’re more likely to say that the financial situation is worse in 2014.
Among independent voters, more than half predict that the economy will worsen in the next year. Meanwhile, Republicans are more pessimistic than Democrats.
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