The following article excerpt by Ruy Teixeira, author of The Optimistic Leftist and other works of political analysis, is cross-posted from The Liberal Patriot:
The Abundance Problem
Abundance means just what you think it means: more stuff, more growth, more opportunity, being able to easily afford life’s necessities with a lot left over. In short, nicer, genuinely comfortable lives for all.
That’s what voters, especially working-class voters, want. But that’s not what they have. Recent Echelon Insights data show more voters think owning a home in a safe neighborhood with good schools is “out of reach” for the average American family (47 percent) than believe that is “financially within reach” (41 percent). That net negative score of 6 points is matched by views on the feasibility of caring for an elderly family member. And views are even more negative on whether starting a small business in financially within reach (-14), saving up for retirement excluding Social Security (-21), sending a child to college (-28), dealing with a major illness (-33) and raising a child on one parent’s income (-34).
Other Echelon Insights data find just 35 percent of working-class (non-college) voters saying they “can comfortably afford” paying their mortgage or rent on their current household income “without having to cut back in other areas”. Only 30 percent of these voters say they can comfortably afford medical and prescription drug costs; on child care it is 4 percent; on a vacation, 20 percent; on going out to eat, 37 percent; on insurance, 29 percent; on transportation, 34 percent; on new clothes, 29 percent; on saving for retirement, 15 percent; and on placing money in an emergency fund, 21 percent.
Whatever that is, it ain’t abundance. Of course, some of this has to do with the baleful effects of high inflation. Over the last two years, workers’ wages have actually lost ground relative to inflation. This is particularly true for workers in the middle of the income distribution. Compared to a year ago, prices are up 28 percent for fuel oil, 27 percent for utility gas, 15 percent for transportation, 12 percent for electricity and 11 percent for groceries. While overall inflation has abated relative to the middle of last year, it clearly remains a large presence in workers’ lives.
In light of all this it is unsurprising that voters’ views on the economy and the effects of Biden administration policies are distinctly negative. In a recent CBS News poll 53 percent said Biden’s policies have made the economy worse, compared to 27 percent who say his policies have made it better. The analogous figures on “your own family’s finances” are 49 percent vs. 18 percent; on inflation, 57 percent vs. 22 percent; and on gas prices, 55 percent vs. 21 percent.
Recent Gallup data found half in the country saying they are financially worse off today than they were a year ago, the highest level since 2009 in the midst of the Great Recession. Among the working class, the level saying they are worse off than a year ago is even higher.