CBS Poll: Americans Feel Inflation’s Effect on Life, Opportunities

TL/DR –

Inflation in the US is at a peak not seen in four decades and is considered to be suppressing the national economy and individual opportunities. Many Americans believe their current standard of living is worse than that of their parents, contradicting the traditional American dream. The majority also report that their income is not keeping pace with inflation, and there is a widespread perception that the opportunity for economic progression is only increasing for the wealthy, while the middle class is stagnating.

Inflation’s Impact on American Living Standards

Recent inflationary pressures have not only hit American pocketbooks but also stifled opportunity and negatively affected living standards, especially among millennials and Gen-Xers. A vast majority feel their incomes are not keeping up with inflation, contrary to optimistic economists’ reports of job growth and “soft landings”.

The Worst Economic Difficulties in Recent Decades

Many Americans believe the economic difficulties posed by the recent pandemic have been the worst in generations, surpassing the 2008-09 Great Recession, 90’s and 80’s recessions, and 1970’s inflation and gas shortages. This is a new experience for many, as it’s been four decades since such high inflation.

The Disconnect between Macro and Micro

Even though macroeconomic indicators signal strength, people pay more attention to their personal financial experiences. Despite the strong job market, three-quarters of Americans believe their incomes are not keeping up with inflation. Additionally, most people feel that economic opportunities are only increasing for the wealthy, not the middle class.

Controlling Inflation

Most Americans are not in favor of interest rate hikes or increased unemployment to control inflation. However, the majority support the idea of government price controls, a measure proposed during the high inflation period in the late 1970s. These views are prevalent among both Democrats and Republicans.

The Role of the White House

Many Americans believe a president has the power to control inflation. However, President Biden’s handling of the inflation issue has largely received negative reviews. The administration’s economic legislative efforts, including the Build Back Better Act and the Inflation Reduction Act, have had mixed evaluations, with many Americans stating that they haven’t heard enough about them.

This CBS News/YouGov survey was conducted with a nationally representative sample of 2,144 U.S. adult residents interviewed between December 6-8, 2023. The sample was weighted according to gender, age, race, and education based on the U.S. Census American Community Survey and Current Population Survey, as well as past vote. The margin of error is ±2.8 points. You can see the full Toplines here.