In his article, "'Unprecedented' divide: Democrats fear recession, Republicans see a boom", Matt Egan looks at how consumer confidence is dependent on your political party affiliation. There has been an upswing in consumer confidence over the past three months in general in the United States, but this is mainly due a large increase in confidence among Republicans who believe large amounts of growth are coming to the economy. Democrats tend to be more pessimistic about the economy, believing a recession is coming, and Independents are somewhere in the middle. The party affiliation and amount of confidence in the economy seems logical to me during this time. Many other issues are becoming increasingly split along party lines. Confidence in the economy appears to be no different, although economists don't agree with the predictions of either major party. They think that economic growth or lack thereof is unclear for the future. We will just have to wait and see if who is proved right in the long run.
http://money.cnn.com/2017/02/24/investing/democrat-recession-republican-consumer-confidence-trump/index.html?iid=SF_LN
4 comments:
If this is the case, I wonder if the fact that because a large percentage of big business owners voted for Trump, there will be a spike in the economy's growth purely due to their confidence in him (rather than any actual policy). Now that this distinction has been brought to my attention, I will keep an eye on the topic and I am interested to see how this develops.
I can certainly see both sides of the argument. On the Republican end we can see the record-breaking upticks in the DOW and investment in general. When we see this on the news we learn the obvious: that investments are a good idea at the moment. However, the policies that the Trump administration aim to put in place, specifically deregulation, would not, in my opinion, produce long and sustained growth. Instead, we might see short term gains with a massive crash similar to the Great Recession. This is particularly concerning since Trump has specifically stated his intention to cut Obama's regulations such as the Dodd-Frank Act which was implemented to combat the this sort of thing in the future.
This is super interesting. The issue of the economy has always been at the top of the list in terms of voting issues, but I never thought about how partisanship can change your perception of the economy. As Liam eludes to, I wonder if this is because of the Trump phenomenon, or just the new norm.
This is an interesting article, it seems true that how the party affiliation influences people's confidence to the economy. On the other hand, I feel how people look at the economy will also affect their voting choice, so I do not think the party affiliation can actually influence the economic development that much. Whatever, we cannot deny the fact that people's confidence to the economy can really affect their investment and other financial choices.
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