Half of Americans say they are worse off now than they were last year, the highest proportion since the height of the Great Recession, a poll released on Wednesday found.
Exactly 50% of Americans say their personal financial situation has deteriorated over the past 12 months, a level not seen since the 54% who said they were worse off in May 2009, according to a Gallup poll.
Meanwhile, the poll found that just 35% of Americans say they are better off now, down from a high of 59% in January 2020.
Gallup, which has been asking the question since 1976, pointed out that it is “rare” for more than half of Americans to say they are worse off financially.
The discouraging outlook follows a year when the annual inflation rate hit 9.1% — the highest in 40 years — causing prices of everything from automobiles to eggs to soar.
Inflation has since cooled off, but remained above 6% in December.
The percentage of people who say they are better off has slipped to or below 35% several times since 1976, including in the late 1970s and the early 1990s, with the most sustained drop occurring from January 2008 to May 2012, when it recovered to 37%.
As recently as January 2022, Americans were evenly divided over whether they were better off or worse off from the previous year (41% apiece).
The poll also shows that the economy has most affected lower-income Americans — defined as those who earn under $40,000 a year.
Among that bracket, 61% say they are worse off, compared to 49% of middle-class (defined as those making between $40,000 and $99,999) and 43% of upper-income households (those earning $100,000 per year or above).
Only 26% of lower-income people say they are better off compared to 37% of those in the middle class and 39% in the upper class.
On a more positive note, 60% say they believe their financial condition will change for the better in the next year, while 28% say they expect it to be worse.
That optimism is evident among all economic backgrounds — with 62% of lower-income, 60% of middle-income and 59% of upper-income Americans saying they expect to be in better financial shape by the start of 2024.
The Gallup poll surveyed 1,011 adults between Jan. 2 and 22 and has a margin of plus or minus 4 percentage points.