Partisan Views of the Economy Mirror Presidencies

Number of the Day: The most relevant or interesting figure in personal finance

7

That’s how many months it took for Democrats and Republicans to completely swap places in terms of optimism about the future of the U.S. economy, a benchmark consumer index from the University of Michigan shows. 

Just as Donald Trump’s election in 2016 created a huge amount of doom and gloom among Democrats who were asked about the economy, Republican attitudes have plunged since right around Joe Biden’s election, the University of Michigan’s Index of Consumer Expectations shows. At the same time, the new president’s ascent has created a surge of optimism among Democrats for Biden’s ambitious economic agenda. In fact, when broken out by party, Democrats are almost exactly as optimistic as Republicans were in July, and vice versa.

The latest survey, taken in late January and early February, is considered the preliminary result for February. Each month, at least 500 people are asked for their outlook on their own financial situation, business conditions, and the economy as a whole over the next one or five years.