"Recovery Summer" is a big "no sale"
Gallup’s latest poll brings us back to reality:
Gallup Daily tracking finds Americans’ confidence in the economy significantly lower so far in July than in June. And confidence in June was, in turn, down from May. The Gallup Economic Confidence Index for July 1-13, at -35, is lower than any monthly average in more than a year.
Recovery summer isn’t off to a very blazing start. If the administration and its spinmeisters think they’re selling the recovery, they need to “reset” their calculation:
The decline in confidence seen in recent months is owing primarily to mounting public skepticism with the economy’s direction. Thus far in July, 30% of Americans, on average, have said the economy is getting better and 65% have said it is getting worse, for a net -35 economic outlook score. This is down sharply from -13 in April.
Economic confidence is a critical key to any recovery. Once consumers are sold on the economy’s recovery, positive growth is usually the result. The opposite is also true. That’s because consumers who have lost confidence in the economy are more likely to put off buying anything but necessities. The obvious economic repercussions of that sort of thinking is to slow growth and thus delay (or kill) any recovery.
The political problem here (I think the economic problems should be obvious to all) is that the confidence of the consumer in the economy is heading down while all the spin is telling us we’re recovering quite well, thank you very much.
In other words, the political sales job on the economy and recover – critical to Democrats going into the mid-term elections – isn’t taking. Consumers hear the pitch, look around them and not seeing what is said to exist, are rejecting it for the reality they are seeing and living.
Bad mojo for Dems looking at an election in 4 months. That’s has caused all sorts of inter-party whining, wailing and fighting. Meanwhile companies do what companies do when they lack confidence in the economy (and the policies of the government) – nothing.
Economically, without a true miracle, things will not begin to turn around sufficiently in the economy to be of any help to Democrats in November. It appears it isn’t a question of whether or not they’ll lose seats, it is a question of how many. With the numbers we’re seeing in various polls about how the electorate views the Democratic Congress and Obama administration’s economic policies, it’s clear that most have decided that giving the GOP another chance is the least of their bad choices for this coming election.
Whether that has much of any impact, given the demonstrated obstinate nature of this administration, in the new Congress (and assuming they take control of at least on house in Congress) remains to be seen. But if the Republicans take the House, the great blame-shifter in the White House will have a new entity on which to blame any continued economic failure.
Or, shorter for the GOP, be careful of what you wish for.