A

O N T H L Y

Political Report
P
O L L

O mp I L a T I O N

Volume 9, Issue 11 December 2013

Economic Insecurity in The United States

Job Anxiety
Improved economic news conceals substantial levels of economic insecurity across the nation. Americans concerns about various aspects of their jobs increased sharply after the nancial crisis in the fall of 2008, and they have stayed high. Their worries about the security of their jobs are not without cause. Pew reports that 15 percent of respondents lost their job in the last year. Around two-thirds say jobs in their area are difcult to nd. And although reports about a dearth of job opportunities are not as prevalent as they were a few years ago, concern remains higher than pre-recession levels. Although job loss anxiety is high, worries about reduced benets are even higher. Around two in ve working adults tell Gallup they are worried that their benets will be reduced.
Q: Next, please indicate whether you are worried about each of the following happening to you, personally, in the near future. How about . . . ?
50%

43%
40%

34%
30%

Worried that your benets will be reduced

31% 29%

20%

20% 17%

That you will be laid off That your wages will be reduced
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

10%

1997

Note: Sample is adults employed full or part-time. Source: Gallup, latest that of August 2013.

New AEI Report

The data in this issue of the AEI Political Report are drawn from a new AEI Public Opinion Study that looks at peoples everyday concerns in great depth. Economic Insecurity: Americans Concerns about their Jobs, Personal Finances, Retirement, Health Costs, Housing, and More is a comprehensive collection of polls from major pollsters that examines attitudes over time on these topics.

Q: For each of the following please tell me whether or not it is something that happened to you in the past year. Have you . . . ? Been able to save money for the future Gotten a pay raise at your current job or gotten a better job Had problems paying your rent or mortgage Been laid off or lost your job
Source: Pew Research Center, March 2013.

41% 28 23 15

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Availability of Jobs?
Q: Thinking now about job opportunities where you live . . . ?
90%

80%

79%

70%

60%

Jobs are difcult to nd

67%

50%

40%

30%

Plenty of jobs available

20%

24%

10%

12%
Jan-04 Aug-04 May-05 Mar-06 Jun-07 Jan-08 Jul-08 Feb-09 Mar-10 Jul-11 Oct-12

0% Jan-92

Source: US News, Pew Research Center, and ABC News/Washington Post, latest that of April 2013.

Out of Work?
Q: How concerned are you that in the next 12 months . . . ?
60%

50%

Very concerned that you or someone else in your household might be out of work and looking for a job

40%

31%
30%

32%

20%

10% Oct-02

Oct-04 Feb-08 Oct-08 Feb-09 Apr-09 Sep-09 Feb-10 May-10 Sep-10 Jan-11

Jun-11 Jan-12 Sep-12 Jun-13

Source: CBS/New York Times, latest that of June 2013.

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Personal Financial Worries

Most people arent overly optimistic or pessimistic when it comes to assessing their nances. They tend to put themselves in the middle, avoiding descriptions such as excellent, very good, very poor, or very bad. When asked to look into the future and evaluate their prospects for the upcoming year, the optimism of Americans comes through. In a May ABC/ Washington Post question, two-thirds were optimistic about their familys nancial situation. In Pews June 2013 question, a majority said they expected their situation to improve a little in the next year. This is despite the fact that many Americans tell pollsters 60% that they have just enough to meet their current needs 50% 45% Good and obligations or that they dont have enough to make 40% 39% ends meet.
Q: How would you rate your own personal nancial situation? Would you say you are ...?
Source: US News and Pew Research Center, latest that of June 2013.

32%

33%
30%

Only fair
20%

18%

Poor

20%

10%

4%

Excellent

7%

0% Jan-92 Jan-93 Sep-96 Jun-01 Jan-03 Jan-05 Oct-06 Nov-07 Apr-08 Feb-09 Nov-09 Sep-10 Apr-11 Jun-12 Mar-13

Is Your Income Enough?

Q: Thinking about your household income, would you say that it is . . . ?
60%

55%
50%

Just enough to meet bills and obligations

40%

47%

33%
30%

27%

Enough so that you can save and buy extras 18% Not enough to meet your bills and obligations

20%

16%

Source: CBS/New York Times, latest that of February 2013.

10%

0% 1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Maintaining Your Standard of Living

Q; Next, please tell me how concerned you are right now about each of the following nancial matters, based on your current nancial situation are you . . . ?
70%

Not condent about being able to maintain the standard of living you enjoy
60%

56%
50%

51% 48%

43%
40%

Condent
30%

20% Apr-01 Feb-02 Dec-02 Oct-03 Aug-04 Jun-05 Apr-06 Feb-07 Dec-07 Oct-08 Aug-09 Jun-10 Apr-11 Feb-12 Dec-12 Apr-13

Source: Gallup, latest that of April 2013.

Financial Situation
Q: Thinking about the next 12 months, would you say you feel . . . ?
90%

80%

75% Optimistic about your own family's nancial situation 66%

70%

60%

50%

40%

30%

Pessimistic 23%

29%

20%

10%

Dec-04 Dec-05 May-06 Dec-06 Dec-07 Feb-08 Apr-08 Sep-08 Dec-08 Feb-09 Apr-09 Dec-11 Mar-12 Dec-12 May-13

Source: ABC/Washington Post, latest that of May 2013.

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Familys Financial Situation

Q: Over the course of the next year, do you think . . . ?
60%

50%

51% 46%

40%

The nancial situation of you and your family will improve a little

30%

20%

19%
10%

Get a little worse Improve a lot Get a lot worse

18% 12% 7%

9% 5%

0% Jan-92 Oct-92 May-97 Jun-01 Jun-02 Mar-03 Jan-05 Dec-06 Jan-08 Oct-08 Jun-09 Nov-09 May-10 Apr-10 Jan-12 Dec-12 Jun-13

Source: US News and Pew Research Center, latest that of June 2013.

Retirement Anxiety
Retirement worries also rose after the nancial crisis. Today, six in ten non-retired adults say they are worried about having enough money for retirement.
80% Q: Next, please tell me how concerned you are right now about each of the following nancial matters, based on your current nancial situationare you . . . ? 70%

Worried about having enough money for retirement

60%

53% 43%

61%

50%

40%

30%

Not worried

35%

20% 2001

2002

2003

2004

2005

2006

2007

2008

2009

2011

2012

2013

Note: Sample is non-retired adults. Source: Gallup, latest that of April 2013.

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Health Care Anxiety

The cost of health care is clearly a concern for many. In September, the Kaiser Family Foundation asked respondents about actions they have taken that are associated with the inability to afford normal health care. More than a third had skipped dental care and, in a separate question, used home remedies or over the counter drugs instead of seeing a doctor. A third had put off or postponed getting the health care they felt they needed.
Q: In the past 12 months, have you or another family member . . . ? Skipped dental care or checkups Relied on home remedies or over the counter drugs instead of going to see a doctor Put off or postponed getting health care you needed Not lled a prescription for a medicine Skipped a recommended medical test or treatment Cut pills in half or skipped doses of medicine Had problems getting mental health care
Source: Kaiser Family Foundation, September 2013.

Because of cost, you or another family member in your house 37% 35 34 27 26 19 12

Paying Your Mortgage or Rent

Concern about being able to pay rent or a mortgage spiked after the nancial crisis in 2008 and again in the fall of 2011. Today, 47 percent say they are worried about this while a bare majority, 52 percent, say they are not.
Q: Im going to read you a list of things that some people worry about and others do not. Id like you to tell me how worried you are about each of the following. How worried are you about . . . ?
70%

Not worried about being able to pay your rent or mortgage

60%

50%

56%

52% 47%

40%

43%

Worried

30%

20% Feb-04

Oct-04

Jun-05 Feb-06

Oct-06

Jun-07 Feb-08

Oct-08

Jun-09 Feb-10

Oct-10

Jun-11

Feb-12

Oct-12

Jun-13

Source: Kaiser Family Foundation, latest that of June 2013.

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Q: Do you . . . ? Expect the value of your home to increase Decrease Stay the same
Note: Asked of a half sample. Source: CNBC, June 2013.

38% 14 48

Comparative Anxiety
Below, we rank the anxieties people have based on responses to two different pollsters questions. The wording of the Kaiser Family Foundation and Gallup questions differs slightly. In both, health care concerns rank high.
Q: Im going to read you a list of things that some people worry about and others do not. Id like you to tell me how worried you are about each of the following. How worried are you about . . . ? (Kaiser Family Foundation) Q: Next, please tell me how concerned you are right now about each of the following nancial matters, based on your current nancial situationare you very worried, moderately worried, not too worried, or not worried at all? If a particular item does not apply to you please say so. First, how worried are you about . . . ? (Gallup) Very worried Kaiser Family Foundation Your income not keeping up with rising prices 46% Losing your health insurance coverage 32 Not being able to pay your rent or mortgage 30 Not being able to afford the health care services you think you need 29 Losing your job 20 Not being able to afford the prescription drugs you need 20 Being a victim of a terrorist attack 15 Having to stay in your current job instead of taking a new job for fear of losing health benets 12 Very worried Gallup Not being able to pay medical costs in the event of a serious illness or accident 34% Not being able to pay medical costs for normal health care 24 Not having enough money to pay for your childrens college 22 Not being able to maintain the standard of living you enjoy 20 Not having enough to pay your normal monthly bills 16 Not being able to pay your rent, mortgage or other housing costs 16 Not being able to make the minimum payments on your credit cards 9

Source: Kaiser Family Foundation, June 2013; Gallup, April 2013.

(Continued on the next page)

AEI POLITICAL REPORT CONTRIBUTORS Karlyn Bowman, Senior Fellow; Norman Ornstein, Resident Scholar; Michael Barone, Resident Fellow. Research Assistants: Jennifer Marsico, Editor; Andrew Rugg, Editor. Interns: Madeline Glista; Kate Wildman.

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Q: Now Im going to read you a list of some different nancial decisions that many Americans face in their lives. For each one, please tell me how realistic each one would be for you to meet, given your nancial situation, if you were faced with that decision today . . . Paying your day-to-day bills Paying medical bills for you and your family Paying off your debt Making your mortgage payment Maintaining a comfortable standard of living in retirement Investing your money for the future Affording six months of expenses in case of an unexpected job loss or health emergency Paying for college Realistic for me Not realistic 90% 9% 71 68 68 59 58 25 23 16 38 39

52 45

46 47

Source: Allstate/National Journal, November 2013.

Recovery?
Even though the great recession ended in June 2009, a majority of Americans tell pollsters that the US is still in one. The response should not be evaluated in terms of public knowledge of how recessions are dened, but rather as an expression of the prevailing belief that the country continues to struggle economically. Very few Americans say that the job market, household incomes, or the housing market have fully recovered from the recession that began in 2007. Morethough only about one in vesay that the stock market has recovered.
Q: Do you . . . ? Think that the US economy is currently in a recession Is not 2013 2008 54% 78% 38 17

Note: A more recent November Allstate/National Journal poll found that 53 percent thought the country was in a recession, while 41 percent did not. Source: McClatchy/Marist, latest that of July 2013.

Q: Thinking about the recession that began in 2008, please tell me whether you think each of the following has fully recovered from the recession, partially recovered, or hardly recovered at all. Think each of the following has recovered Fully recovered The job situation 2% Household incomes 2 Real estate market 4 Stock market
Source: Pew Research Center, September 2013.

21

Partially recovered 45% 42 59 53

Hardly recovered 52% 54 33 18

(Continued on the next page)

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Obama and the Recovery

People are also dissatised with President Obamas handling of the economy. Fifty-three percent disapprove of his performance in this area in Pews latest poll. In another question, 22 percent say they are better off since he took ofce while a third say they are not as well off. Not only is Obama receiving more negative remarks on his performance, but views of his empathy have also taken a hit. In the latest ABC/Washington Post poll, 47 percent said Obama understands the problems of people like you. That response is down from 55 percent in January of this year.
Q: Do you . . . ?
70%

60%

Disapprove of the way Barack Obama is handling the economy 56% 53%

50%

40%

42% Agree

30%

20%

24%

10% Feb-2009

Aug-2009

Feb-2010

Aug-2010

Feb-2011

Aug-2011

Feb-2012

Aug-2012

Feb-2013

Aug-2013

Source: Pew Research Center, latest that of December 2013.

Q: Would you say you, yourself, are . . . ? Better off nancially than you were when Obama became president Not as well off About the same
Source: ABC/Washington Post, October 2012.

22% 33 45

Q: Please tell me whether following applies to Obama, or not . . . ? [Obama] understands the problems of people like you Does not Nov. 2013 47% 51 Jan. 2013 55% 43

Source: ABC/Washington Post, November 2013.

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

Struggling to Make Ends Meet

Surveys show that a sizable minority of people in the United States are struggling. Americans in this group, which numbers around twenty percent of the population, cant meet their current obligations, occasionally dont have money to buy food, cant consistently pay their rent or mortgage, and are worried about paying for basic health care. These polls provide a heartbreaking reminder of the needy among us.
Q: Which of the following statements best describes your situation? I nd it hard to make ends meet
Source: Allstate/National Journal, September 2012.

21%

Q: And, how would you rate your . . . ? Personal nancial situation is in poor shape
Source: Allstate/National Journal, November 2013.

17%

Q: Thinking ahead to this time next year, do you expect that . . . ? Personal nancial situation will be worse
Source: Allstate/National Journal, November 2013.

15%

Q: How would you describe your households nancial situation? Household doesnt have enough to meet basic expenses
Source: Pew Research Center, November 2012.

11%

Q: Think about your household income, would you say . . . ? Household income is not enough to meet your bills and obligations
Source: CBS News, February 2013.

27%

Q: Have there . . . ? There were times during the last year when you did not have enough money to buy food your family needed
Source: Pew Research Center, March 2013.

24%

Q: Have you . . . ? Had problems paying your rent or mortgage

Source: Pew Research Center, March 2013.

23%

Q: Next, please tell me how concerned you are right now about . . .? Very worried about not being able to pay medical costs for normal health care
Source: Gallup, April 2013.

24%

1150 Seventeenth Street, NW, Washington, DC 20036 202.862.5800 www.aei.org

10