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12/9/17: Partisan Gap in Consumers’ Perception of the U.S. Economy Explodes

trueeconomics.blogspot.com / by Constantin Gurdgiev / Tuesday, September 12, 2017

A quick post, H/T @profsufi. Here is a chart from the U of Michigan consumer survey showing an explosion in partisan gap between Democrats and Republicans when it comes to self-reported consumer sentiment:

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As Sufi stated in his tweet, “Rise in partisan bias in economic expectations according to Michigan Survey of Consumers data”. Notably,

  1. Democrats negative perceptions are not at extraordinarily low levels. Similar applied for the Republicans during Obama 1 Administration and Carter Administration, and for Democrats in Carter Administration and Bush W2 Administration. So negative perceptions are not the key driver of the gap dramatic rise.
  2. Republican’s optimism during the Trump Administration [short so far] tenure is the main driver of the partisan gap.
  3. Current partisan gap reflects data that barely touches Trump Administration, with majority of economic performance figures still impacted heavily by the inertia inherent from the Obama Administration days.

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