Some experts say that the U.S. economy is performing well, however, the average American does not necessarily agree. According to an exit poll conducted by NBC, nearly half (45%) of voters stated that their current economic situation is worse than it was four years ago, marking the highest percentage since 2008.
The Wall Street Journal also noted that approximately 40% of voters consider the economy their top concern, with 60% of those voters supporting Trump. The Associated Press’ VoteCast reported that a staggering 96% of voters indicated that the high prices of gas, groceries, and other commodities influenced their voting decisions.
When it comes to voting, most Americans do not consider macroeconomic GDP growth numbers or economic “soft landings.” Rather, voters are concerned about their food and grocery bills and the seemingly unattainable goal of homeownership.
The post-pandemic surge in inflation has been particularly hard for Americans to bear. During Biden’s presidency, inflation rates soared, and while there has been some moderation recently, prices still remain significantly higher than they were when Trump left office. The Consumer Price Index from the U.S. Department of Labor in September of this year showed an almost 20% increase compared to January 2021, marking the largest single-term inflation since President Reagan.
Americans are now shocked by the rising prices of various goods, from cleaning supplies to a cup of coffee. Many people are dissatisfied with the economy, and it goes beyond just prices – they also feel discontent and anxiety about the future. The “American Dream” of owning a home and building a family is now facing challenges.
Brett House, an economics professor at Columbia Business School, also acknowledges that prices in the U.S. remain high. He stated, “Americans are still frustrated by the persistently high prices post-pandemic, with everyday expenses like groceries, burgers, rent, and gas prices being startlingly high.”
In response to this, Amanda DiAntonio, a 36-year-old hairstylist from Henderson, Nevada, voiced her concerns, saying, “We are exhausted, everyone we know is exhausted, the past four years have felt like someone’s foot constantly pressing down on the chest of the American people.” She voted for Trump, believing that he would prioritize the livelihoods of the working class. His election brought her a sense of relief, saying, “Let’s keep moving forward, we will be okay.”
Chris Abramowicz, 39, from Rockford, Illinois, who runs a small IT business, expressed frustration over the rising grocery prices, particularly irked by the soaring egg prices. He remarked, “It’s not just that eggs are now 20% more expensive, it’s as if the chickens went on strike because they formed a union.”
He feels that while some politicians insist that the economy is thriving, he and everyone around him feel worse off. He finds it hard to accept, stating, “You look around and see the reality, but you’re told, ‘Oh no, everything is great.'”
Many Americans are feeling the pressure of rising interest rates. Federal Reserve data shows that before the Fed began hiking rates in 2022, the average credit card rate was 14.6%. By August 2024, prior to the first rate cut by the Fed, the credit card rate had climbed to 21.8%.
Auto loan and mortgage rates have also been on the rise. Freddie Mac reported that the average interest rate for a 30-year fixed-rate mortgage went from under 3% when Biden took office to 7.8% last year, hitting a multi-decade high before dropping to 6.7%.
The soaring housing prices have made it increasingly difficult for many families to buy homes. The National Association of Realtors’ Housing Affordability Index shows that housing affordability in the U.S. is at its lowest level since the early 1980s.
A July survey conducted by The Wall Street Journal and NORC (National Opinion Research Center) revealed that 89% of American adults believe that owning a home is crucial to their future vision, yet only 10% of respondents find it easy to transition into homeownership.
Demarion Richey, a 30-year-old, shared his experience, saying that five years ago when he worked as a restaurant server in Las Vegas and earned $50,000, he could have bought a house. However, now he struggles with the idea, stating, “I tried buying a house, and it was a complete failure.”
There are also signs of a slowdown in the labor market. The U.S. Bureau of Labor Statistics reported that the quit rate in September was 3.1 million, a 1.9% decrease from the previous quarter. Company recruitment has also slowed down, with the Bureau pointing out that there were only 12,000 new job opportunities in October, significantly lower than the expected 100,000 growth and below the 223,000 jobs added in September.