Economic optimism wanes with an increase in concerns: 55% predict detrimental effects of budget cuts to federal programs
A Cut-to-the-Chase Analysis of America's Economic Woes
In the US, economic concerns have skyrocketed under President Donny T, the latest CNN poll from SSRS reveals. Only 28% believe his policies have boosted the economy, while a staggering 55% foresee negative consequences from federal program cuts.
Economic prospects tremble as opinions on the country's fiscal future are split right down the middle. Forty-nine percent expect good economic conditions a year from now, but 51% anticipate poor ones. This pessimism has swelled by 7 points since Trump took office in 2020.
The Wall Street jitters are real, with Trump's economic policies causing the stock market to nosedive. Trump himself has been inconsistent, stirring speculation about a possible recession.
The President's approval ratings for prosperity-related issues mirror his overall approval ratings (44% for his handling of the economy, compared to 45% for his presidency overall). His lowest marks are on tariffs (39% approve).
The poll also shows that even though some indicators of confidence have risen under Trump, views of the economy remain unchanged. Findings from the same survey indicate an increasing number of people believe the overall situation is improving (35%, an increase from 29% in January). However, sentiments about the economy staying strong have stayed constant since January (28%).
In regards to personal finances, there's been some improvement compared to summer 2023, but 7 in 10 Americans are still reluctant to splurge, while 71% are cutting back on luxury items. The shift seems largely due to the change in political affiliation, as Democrats and Republicans have traded places regarding perceptions of the economy.
The future seems less optimistic for Trump's economic optimism among Democrats and independents, who are growing increasingly pessimistic. Republicans remain relatively unchanged, while independents and Democrats have seen drastic drops in positive outlook (Independents: 54% in January to 41% now; Democrats: 31% in January to 18% now).
Impact of Federal Government Cuts:
Americans see negative repercussions from Trump's federal program cuts. 55% believe the cuts will harm the US economy, with 51% expecting personal harm and 52% anticipating consequences for their local communities. On the flip side, just 34% expect the cuts to help the economy, while 22% foresee positive effects on their families and communities.
Respondents envisioning positive impacts typically spoke of reduced taxes and the potential for eventual economic growth. Those expecting negative impacts highlighted concerns such as increased costs, loss of health benefits, and job insecurity. One individual went so far as to express fear for the future of their democracy.
Demographic and Partisan Shifts:
Younger adults, a critical voting bloc, have experienced a decline in economic optimism, particularly among those aged 18-34 (43% now, compared to 54% in January). This shift seems to span political lines, as older Republicans have grown more confident in the economy.
Americans in the youngest age group are generally less satisfied with their personal finances and are more likely to have made economizing changes due to current economic conditions.
Nearly all Democrats (86%) and most independents (57%) view Trump's policies as detrimental to the economy, while only 10% of Republicans share this sentiment. The vast majority of Democrats expect negative effects for themselves, their community, and the economy at large, while Republicans generally see economic benefits (74%), but less so for their families and communities.
The survey was conducted from March 6-9, online or by telephone with a live interviewer, with a margin of sampling error of ±3.3 percentage points. CNN's Ariel Edwards-Levy and Edward Wu contributed to this report.
- Americans have expressed concerns about the potential impact of President Donny T's political decisions on the economy, with 55% believing federal program cuts will harm the US economy.
- Opinions on President Donny T's economic policies have created a divide amongst the partisan lines, with nearly all Democrats viewing his policies as detrimental to the economy, while only 10% of Republicans share this sentiment.
- As the survey results show, there are indicators of uncertainty in the American economy, such as the increasing pessimism about future economic conditions and the reluctance of 7 in 10 Americans to splurge on luxury items.
