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Americans Expect Worsening Economy

Americans don’t expect good economic news anytime soon, according to a new poll by Discover Financial Services’ U.S. Spending Monitor:

the portion of consumers that expect the economy will get worse rose to more than half for the first time this year–up 4 percentage points at 53%–as sentiment among men worsened.

Meanwhile, people expect to spend more on necessities:

While 28% of respondents planned to spend more next month, the increase was driven mostly by an increase in anticipated spending on nondiscretionary items. About 38% of respondents expect to spend more on household expenses.

These eery echoes of the “stagflation” of the Carter era are bad news for the Obama re-election campaign (and the president isn’t exactly helping us ignore those echoes).

Overall, it’s just not a good time to be an incumbent.

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  • Luke Lea

    My view is that stagflation was a product of inflationary monetary policies combined with automatic cost-of-living adjustments (COLA’s)in union contracts. Organized labor was a real force in the 1970’s.

    Today the problem is the reverse: a lack of inflation (insufficient inflationary monetary policy) in the absence of COLA’s. If there were a faster rise in the consumer price index real wages would fall (real wages = nominal wages – inflation) and the demand for labor would rise.

    (Of course I’m not in favor of a lower standard of living, but in the short-run that is the only solution to the problem of involuntary unemployment.)

  • Gerald

    I certainly wish the economy would improve, but there is little reason to believe that it will. While I support Mr. Romney and the Republican Party in general and believe that they will do less damage to the economic prospects of our county than Mr. Obama and the Democrats, the truth is that the magnitude of the problems that we face in terms of entitlements of all sorts, systemic unemployment, lack of competitive skills and disfunctional government will take many years to fix regardless of who wins in November. The fundamental issue is to at least find local, state and federal politicians with the will and courage to attempt to address real problems. It will be really helpful if we can stop worrying about trivial issues such as the beliefs of Chik-Fil-A management, etc. and concentrate on real problems. Government at all levels is becoming more and more the real problem and less and less a part of a solution. If nothing else, it would be good if the government could at least stop making things worse.

  • alex scipio

    The economy only will get worse if we re-elect the guy in the Oval Office. The policies he has pursued have ALWAYS led to economic decline, in every time and nation. Re-electing him will only be more of same.

    OTOH, if we are smart enough to elect Romney and a GOP House & Senate, things will get better – much better – almost immediatlely; the Ryan budget will ensure that.

  • Mick The Reactionary

    I support Mr. Romney and the Republican Party in general and believe that they will @Gerald:

    “the magnitude of the problems that we face … systemic unemployment, lack of competitive skills … will take many years to fix”

    What competitive skills we, Americans, are lacking?

    Please list skills that will get a young kid after HS or college a job with health benefits?

    Please provide factual base for your assertions.

    On this blog only the Master is allowed to make unsupported assertions.

  • Kenny


    And how fitting then that the president who gave us stagflation in the 1970s, Jimmy Cater, will be a featured speaker at B. Hussein Obama’s national convention in 2012.

    Yes sir, Carter and Obama, perfect together.

  • Eurydice

    In a recent “Random Experts Butting Into Your Personal Business” poll, 98% of my friends and family responded that they’re sick and tired of hearing how sick and tired they are. The lone holdout was Great Aunt Jeanne, who never tires of telling people how sick she is.

  • Vickee

    Amazing. I am surprized at how much the negative/ false ads are helping Barack Hussein Obama and his poll numbers. I used to think nice guys won, but not with this chicago style thug administration. You realize Obama won the Senate seat by having his opponents DIVORCE records UNSEALED! Now. think abou this. What if we fought to have Barack Hussein Obamas college/ medical etc records unsealed. What would we find out … I think enough to make him a one term pressie from the stessie.

  • teapartydoc

    I’m sure the only reason things are this bad are Bush and the fact that Romney hasn’t shown us his underwear–I mean his tax records.

  • njcommuter

    Overall, it’s not a good incumbent!

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