A recent Wall Street Journal-NORC poll, conducted from October 19 to October 24 and surveying 1,163 registered voters with a margin of error of plus or minus 4 percentage points, indicates a widespread and deepening economic pessimism in the United States, extending even to higher-income households. The survey found that only 25% of respondents believe they have a good chance of improving their standard of living, marking a record low in polling data that dates back to 1987. This sentiment is coupled with over three-quarters of Americans expressing a lack of confidence that the next generation's life will be better than their own. Nearly 70% of individuals surveyed feel that the American Dream, defined as achieving success through hard work, no longer holds true or never did, the highest level in almost 15 years of surveys.
Despite a somewhat brighter view of the current economy, with 44% rating it as excellent or good (up from 38% a year ago), a larger share of 56% still views the economy as not good or poor. Concerns about inflation remain stubbornly high, with 28% of all respondents reporting major financial strains due to rising prices, identical to a March 2023 poll when inflation was at 5%, compared to today's 2.7%. An additional 32% reported minor strains from inflation. Many respondents also expressed that prior generations had an easier time with milestones like homeownership, starting a business, or being a full-time parent, and lacked confidence in the next generation's ability to buy a home or save for retirement.
This pervasive negative sentiment exists even as traditional economic indicators suggest a robust economy, a disconnect that has puzzled economists and impacted political outcomes. The poll also revealed that only 17% of Americans believe the U.S. economy surpasses all others globally, while nearly 40% feel other nations have better economies—a 15-point increase from 2021. Experts like Karlyn Bowman of the American Enterprise Institute suggest that this sour public mood is a reaction to multiple economic shocks, including the 2008-09 financial crisis, the COVID-19 pandemic, and current issues like inflation, labor market concerns, and tariffs, which she described as a "triple whammy." This economic anxiety is particularly pronounced among young adults and women, with only 28% of women and those under 50 believing the American Dream for hard work still holds true, compared to 46% of men and 48% of those age 65 or older.
Related polls further underscore these concerns. A CNN poll found that strong majorities are pessimistic about the overall economy, with almost 7 in 10 believing a recession is likely in the next year. Concerns about the cost of living, including food and gas prices, are prevalent across all demographics, with 23% specifically mentioning gas prices as a top financial concern, up from 5% a year ago. A third of Americans worry their income isn't enough to meet expenses, and only about a third feel they can comfortably afford a $1,000 emergency or save for the future. Similarly, a Gallup poll reported that 31% cite inflation and high prices as their top financial problem, with 55% saying their financial situation is getting worse, a record high. Energy costs are also a significant concern for 13% of Americans, tying housing costs as the second-biggest worry.
