As the United States inches closer to an election year that general public grows more and more pessimist about the economy. According to the USA/Gallup poll: 80% believe that the economy is in a recession and that it has not improved over the past year.
Further more 60% of Americans predict that the economy will worsen or be the same over the next year. This is truly a chilling statistic as major economists belief that this type doom and gloom outlook can become a self-fulfilling prophesy.
Why? Because if the general public believe that the economy is getting worse they will curb their spending, thus decreasing the money flow into the business. Causing the business community to pull back on spending and hiring. The classic trickle down affect.
The International Monetary Fund sharply decreased the US economic outlook for 2011 and 2012, 1.5% to 1.8%. This is an anemic rate and one that leading economists warn is a “dangerous new phase”.
Who is to blame? While the current administration has been blaming the previous one. The American public is going less convinced that all of the blame should be pointed at the Bush years. Infact for the first time since taking office President Obama is being blamed by over 60% of the independent voters.