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Most Americans Say the Current Economy Is Helping the Rich, Hurting the Poor and Middle Class

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Most Americans Say the Current Economy Is Helping the Rich, Hurting the Poor and Middle Class FOR RELEASE December 11, 2019 Most Americans Say the Current Economy Is Helping the Rich, Hurting the Poor and Middle Class Roughly half of lower-income Republicans say current economic conditions are hurting them and their families BY Ruth Igielnik and Kim Parker FOR MEDIA OR OTHER INQUIRIES: Ruth Igielnik, Senior Researcher Kim Parker, Director, Social Trends Research Tanya Arditi, Communications Manager 202.419.4372 www.pewresearch.org RECOMMENDED CITATION Pew Research Center, December, 2019, “Most Americans Say the Economy Is Helping the Rich, Hurting the Poor and Middle Class” 1 PEW RESEARCH CENTER About Pew Research Center Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping America and the world. It does not take policy positions. The Center conducts public opinion polling, demographic research, content analysis and other data-driven social science research. It studies U.S. politics and policy; journalism and media; internet, science and technology; religion and public life; Hispanic trends; global attitudes and trends; and U.S. social and demographic trends. All of the Center’s reports are available at www.pewresearch.org. Pew Research Center is a subsidiary of The Pew Charitable Trusts, its primary funder. © Pew Research Center 2020 www.pewresearch.org 2 PEW RESEARCH CENTER Most Americans Say the Current Economy Is Helping the Rich, Hurting the Poor and Middle Class Roughly half of lower-income Republicans say current economic conditions are hurting them and their families By many measures, the U.S. economy is doing well. Public gives the economy mixed reviews; most say it’s Unemployment is near a 50- helping the rich, while few say it’s helping them year low, consumer spending % saying economic conditions in the country are … is strong and the stock market is delivering solid returns for investors. Despite these positive indicators, public assessments of the economy are mixed, and they differ significantly by income, according to a new Pew % saying current economic conditions are … Research Center survey. Majorities of upper-income and middle-income Americans say current economic conditions are excellent or good. But only about four-in- ten lower-income adults share that view, while a majority say the economy is only fair or Notes: Share of respondents who didn’t offer an answer not shown. Family incomes are poor. adjusted for differences in purchasing power by geographic region and for household size. Middle income is defined as two-thirds to double the median annual income for the survey sample. Lower income falls below that range, upper income falls above it. Source: Survey of U.S. adults conducted Sept. 16-29, 2019. Views of the economy are “Most Americans Say the Current Economy Is Helping the Rich, Hurting the Poor and Middle strongly linked to Class” partisanship, with PEW RESEARCH CENTER Republicans and independents who lean toward the Republican Party much more likely than their Democratic and Democratic- leaning counterparts to have a positive view of the current economy. While attitudes toward the economy have long been partisan, they are particularly so today – and virtually all the increase in positive views of the economy since Donald Trump became U.S. president has been among www.pewresearch.org 3 PEW RESEARCH CENTER Republicans. Still, income gaps persist within these party groups. In fact, lower-income Republicans are roughly four times as likely as those in the upper-income tier to give the economy an only fair or poor rating. To the extent that current economic conditions are helping particular groups, the public sees the benefits flowing mainly to the most well-off. Roughly seven-in-ten adults (69%) say today’s economy is helping people who are wealthy (only 10% say the wealthy are being hurt). At the same time, majorities of Americans say poor people, those without a college degree, older adults, younger adults and the middle class are being hurt rather than helped by current economic conditions. When asked how economic conditions are affecting them and their families, nearly half of adults (46%) say they are being hurt, 31% say they’re being helped and 22% say they don’t see much About two-thirds of lower-income of an impact. Overall, Democrats are more Americans frequently worry about likely than Republicans to say economic paying their bills conditions are hurting their own families, but % saying they worry about the following views differ significantly by income within parties. Every day Almost every day Net Paying your bills A variety of factors go into Americans’ All adults 25 16 41 assessments of current economic conditions, Upper income 7 7 14 the most prominent being perceptions about Middle income 19 16 35 wages and income, the availability of jobs and the cost of health care. Two of these three Lower income 44 21 65 factors are also seen as having a significant The cost of health care for you and your family impact on people’s own financial situations: All adults 22 17 39 51% say wages have a great deal of impact on Upper income 8 10 18 their household finances, and 43% say the same about health care costs. The overall job Middle income 18 19 37 situation is seen as less personally relevant. Lower income 36 19 55 Instead, 45% say consumer prices have a large Notes: Family incomes are adjusted for differences in purchasing impact on their own financial health. power by geographic region and for household size. Middle income is defined as two-thirds to double the median annual income for the survey sample. Lower income falls below that range, upper income A look inside the financial lives of Americans falls above it. Source: Survey of U.S. adults conducted Sept. 16-29, 2019. reveals an enormous gulf in the day-to-day “Most Americans Say the Current Economy Is Helping the Rich, challenges and worries that lower-income and Hurting the Poor and Middle Class” PEW RESEARCH CENTER upper-income adults experience. Two-thirds of www.pewresearch.org 4 PEW RESEARCH CENTER lower-income adults (65%) say they worry almost daily about paying their bills, compared with about one-third of middle-income Americans (35%) and a small share of upper-income Americans (14%). The cost of health care is also a worry that weighs on the minds of many Americans, particularly those in the lower-income tier. More than half of lower-income adults (55%) say they frequently worry about the cost of health care for themselves and their families; fewer middle- income (37%) and upper-income Americans (18%) share this worry. The nationally representative survey of 6,878 adults was conducted online from Sept. 16-29, 2019, using Pew Research Center’s American Trends Panel. Defining income tiers To create upper-, middle- and lower-income tiers, respondents’ 2018 family incomes were adjusted for differences in purchasing power by geographic region and for household size. “Middle-income” adults are in families with annual incomes that are two-thirds to double the median family income in our sample (after incomes have been adjusted for the local cost of living and for household size). The middle-income range for this analysis is about $40,100 to $120,400 annually for a three-person household. Lower- income families have incomes less than roughly $40,100, and upper-income families have incomes greater than roughly $120,400. Based on these adjustments, 31% of U.S. adults in total are lower income, 46% are middle income and 17% fall into the upper-income tier. See the methodology for more information about how the income tiers were determined. www.pewresearch.org 5 PEW RESEARCH CENTER Views of the economy differ depending on income and political leanings A majority of Americans (56%) say they think current economic conditions in the country are Views of the economy are highly excellent or good, including relatively few (10%) partisan, but income gaps persist within parties characterizing conditions as excellent and 46% saying they are good. Roughly four-in-ten % of each group who say that economic conditions in the country are … Americans (44%) say current economic conditions are only fair (35%) or poor (8%). While most Republicans and independents who lean to the Republican Party (75%) say economic conditions in the country today are excellent or good, only 41% of Democrats and Democratic leaners share that view. But within parties, views differ substantially by income. While roughly nine-in-ten upper- income Republicans (89%) feel positively about current economic conditions, lower-income Republicans are far less likely to share that Notes: Family incomes are adjusted for differences in purchasing opinion. Some 57% of lower-income power by geographic region and for household size. Middle income is defined as two-thirds to double the median annual income for the Republicans say current economic conditions survey sample. Lower income falls below that range, upper income are excellent or good, roughly similar to the falls above it. Source: Survey of U.S. adults conducted Sept. 16-29, 2019. share of upper-income Democrats who say this “Most Americans Say the Current Economy Is Helping the Rich, (55%). Only about one-third of lower-income Hurting the Poor and Middle Class” PEW RESEARCH CENTER Democrats (34%) rate current economic conditions positively. Looking to the future, about half of Americans (48%) say they expect economic conditions will be about the same in a year, roughly one-third (32%) say the economy will be worse and just 20% say they think the economy will be better. The share saying economic conditions will get better is largely consistent across income groups, but upper-income adults are somewhat more likely to say they expect things will get worse.
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