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The State of President Joe Biden's Economic Approval and Handling of the Economy
Economic Approval Ratings
Despite efforts by the White House to promote President Joe Biden's economic policies, his approval ratings on the economy remain largely disapproved of by the majority of Americans, according to the CNBC All-America Economic Survey. While the survey shows a slight increase in Biden's economic approval ratings, with a 3% rise in approval and a 4% drop in disapproval, his net-negative rating remains at 21 points. This improvement was driven mainly by gains in approval from Democrats, as well as men and retirees.
American Views on the Economy
The survey also reveals that American views on the economy have seen small gains, though they still remain at low levels. The percentage of Americans who believe the economy is excellent or good increased by 6 points, but still sits at a low 20%. On the other hand, the percentage of Americans who believe the economy is fair or poor decreased by 6 points, but is still high at 79%. Additionally, only 24% of respondents believe that the economy will improve in the next year, while 43% expect it to worsen.
Possible Factors Influencing Views on the Economy
Jay Campbell, partner at Hart Research, suggests that the slight improvement in American views on the economy could be due to a combination of messaging and the perception that the economy is not as bad anymore. However, Campbell emphasizes that it is too early to determine whether this improvement is the beginning of a trend. Despite these small gains, the overall approval rating for President Biden remains unchanged at 39%.
Inflation as the Top Issue
The survey identifies inflation as the top concern for Americans, with 30% of respondents naming it the number one issue. This is more than twice the percentage of respondents who expressed concerns about other issues such as threats to democracy, immigration and border security, healthcare, and crime. Furthermore, when it comes to handling key economic issues, Republicans are believed to have better policies than Democrats, leading by double digits on the economy, inflation, and improving respondents' personal financial situations. They lead by single digits on jobs and energy costs.
Impact of Higher Interest Rates
The survey also reveals that Americans are feeling the impact of higher interest rates on their finances and spending habits. As a result of these higher rates, many Americans say they are less likely to purchase a car or home, take out a home equity line of credit, or even consider job relocations. However, there is some good news in the housing market, as 44% of American homeowners believe their home prices will increase in the next year, signaling potential recovery in the housing market.
Optimism and Pessimism in the Stock Market
While there is a slight return of optimism in the stock market, with 33% of respondents believing it is a good time to invest, negative views still prevail. A significant 46% of respondents believe it is a bad time to invest in the stock market, highlighting the lasting impact of the pandemic on people's perception of equity investments.
In conclusion, although President Biden's economic approval ratings have seen a slight uptick and American views on the economy have improved marginally, there is still significant disapproval and concerns regarding inflation. Republicans are believed to have better policies for handling key economic issues. The impact of higher interest rates is causing Americans to adjust their financial decisions, and while there are some positive indicators in the housing market, optimism in the stock market remains subdued.
Hot Take: How Biden's Economic Approval May Impact New Businesses
President Joe Biden's economic approval ratings and handling of the economy could have significant implications for new businesses. While there has been a slight improvement in his economic approval ratings and American views on the economy, concerns regarding inflation and the perception of better economic policies from Republicans persist. This complex economic landscape can have both positive and negative effects on new businesses.
On the positive side, the potential recovery in the housing market, as indicated by the belief of 44% of American homeowners that their home prices will increase in the next year, could create opportunities for businesses in the real estate and construction sectors. Additionally, the slight return of optimism in the stock market and the belief of 33% of respondents that it is a good time to invest might attract new investors and provide a boost to innovative and growth-oriented businesses.
However, the concerns about inflation and higher interest rates could pose challenges to new businesses. Inflation can increase input costs and reduce consumers' purchasing power, making it harder for new businesses to maintain profitability and attract customers. Moreover, the impact of higher interest rates on consumers' spending habits can further dampen demand for certain products and services, affecting the growth prospects of new businesses.
The perception that Republicans have better policies for handling key economic issues could also influence regulations and legislation that may impact new businesses. Depending on the policies implemented, new businesses may face different levels of support or hurdles in areas such as taxation, government programs, and business regulations.
In conclusion, the state of President Biden's economic approval and handling of the economy can have both positive and negative effects on new businesses. While there are potential opportunities in the housing market and stock market, challenges related to inflation, higher interest rates, and political factors should be carefully considered by entrepreneurs entering the market.
Article First Published at: https://www.cnbc.com/2023/07/20/bidens-economic-approval-rating-rises-slightly-but-is-still-just-37percent-despite-bidenomics-push.html