Americans' pessimism about the economy cuts across political lines

Economic Sentiment - More than half of Americans, specifically 53%, believe the economy is worsening, a slight improvement from 58% in late April [2] - About 60% of respondents feel the cost of living has increased since the start of the year, and 47% perceive the job market as worse [2] Partisan Perspectives - There is a significant partisan divide, with only 24% of Republicans believing the economy is deteriorating, compared to 60% of independents and 67% of Democrats [3] - Among rural Americans, who previously supported Trump by a margin of 69% to 29%, half have become more pessimistic about the economy since summer [3] Aspirations and Optimism - 38% of rural Americans report increased pessimism about achieving the American dream, while only 25% feel more optimistic [4] - Urban Americans show a contrasting trend, with 41% feeling more optimistic compared to 28% who are pessimistic [4] Educational Divide - Among Americans with less than a four-year college degree, pessimism outweighs optimism by 38% to 26% [5] - Conversely, those with at least a bachelor's degree report more optimism, with 43% feeling positive compared to 26% who are pessimistic [5] Economic Performance vs. Sentiment - The US economy is growing steadily, with the unemployment rate slightly over 4%, near historical lows [7] - Despite a 13% increase in the S&P 500 driven by AI investments, 37% of respondents feel their financial security is worsening [8] Disconnect in Perception - The disparity between a booming stock market and general financial gloom may stem from the nature of technology, with fears that AI could threaten jobs [9] - Economic prosperity is concentrated among a narrow set of companies focused on AI, while overall business investment remains weak [10] Policy Impact - Trump's tariffs have negatively impacted key sectors, with China limiting access to rare earth minerals and reducing soybean purchases, affecting Midwest farmers [12] - The crackdown on immigration is creating a labor shortage in agriculture, threatening food supply [12] Political Climate - Trump's rhetoric contributes to a negative economic outlook, as he emphasizes threats from foreign countries and crime in Democratic cities [13] - Despite a reduction in immigration, only 11% of Americans view it as the biggest risk to the economy, indicating a disconnect between policy and public perception [14]