61% of Americans Doubt That Economy Will Improve Over Next 12 Months
According to a recent Gallup poll, 80% of Americans believe that the United States is currently in a recession.
The majority (61%) of those included in the poll also said they believe that the economy will not improve over the next 12 months.
The heart of this widespread pessimism is a weak jobs market. With a national unemployment rate of over 9%, many Americans are either out of work or fearful that they will lose their jobs. With the unemployment rate not expected to meaningfully dip below 9% anytime soon, it's easy to see why this sky-high unemployment rate would translate into pessimism over the near-term direction of the US economy.
On top of that, Americans have to worry about turmoil in Europe, rising energy prices, rising food prices, falling housing prices, trillion dollar deficits, a sky-high national debt load and a volatile stock market, just to name a few. It's no wonder that the average US citizen is feeling a little dark when they think about the state of the economy.
All of these worries translate into slackened consumer demand, which in turn leads to reduced need for workers. Instead of deploying record piles of cash that they are currently sitting on, many companies are opting to just stay on the sidelines, waiting for any sign of an upturn.
It's a vicious cycle that will very likely depress the US economy for years to come.
Source: Gallup.com - In U.S., 6 in 10 Do Not Expect Economy to Improve Soon
Filed under: The Economic Meltdown