Yikes: 75 Percent of People Worried America Slipping Back Into Recession

Posted: Jun 18, 2012 1:48 PM

The National Bureau of Economic Research defines a recession as, "a period between a peak and a trough, and an expansion is a period between a trough and a peak. During a recession, a significant decline in economic activity spreads across the economy and can last from a few months to more than a year. Similarly, during an expansion, economic activity rises substantially, spreads across the economy, and usually lasts for several years." The NBER declared the Great Recession over in December 2008, despite millions of Americans still being unable to find work. Regardless, a new poll from The Hill shows 75 percent of people fear the United States is moving toward another recession, even though they don't feel we ever got out of the first one.

Amid worrisome jobs numbers and the looming threat of a eurozone crisis, the survey found 75 percent of people were either very or somewhat worried the country is headed toward another recession.

Among those concerned, 46 percent said they were “very” worried and 29 percent said they were “somewhat” worried.

The survey underscores the influential role economic issues are expected to play in the November elections, particularly in the presidential race.

With the fallout from the 2008 economic crash still fresh in voters’ minds, just 18 percent of those surveyed said they are not very worried about another recession. Only 4 percent are not worried at all.

The level of concern about a second recession was most pronounced among middle-income and lower-income voters.

A Rasmussen Report out today echos those economic concerns, showing people do not beleive the economy will be better in a year and may actually get worse.

A new Rasmussen Reports national telephone survey shows that 36% of American Adults now think the economy will be stronger in a year. That’s consistent with findings so far this year and more optimistic than Americans were throughout 2011. But 52% don’t share that optimism, including 38% who believe the economy will be weaker in a year’s time and 14% who predict it will be about the same. Thirteen percent (13%) aren’t sure.

These numbers come after the Washington Post reported last week that Americans lost 40 percent of their wealth between 2007 and 2010.

The recent recession wiped out nearly two decades of Americans’ wealth, according to government data released Monday, with ­middle-class families bearing the brunt of the decline.

The Federal Reserve said the median net worth of families plunged by 39 percent in just three years, from $126,400 in 2007 to $77,300 in 2010. That puts Americans roughly on par with where they were in 1992.