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July 17, 2008
The Rockefeller Foundation/TIME Magazine Survey of 2,008 Americans illustrates Americans’ worsening economic prospects and elevates five major findings:
1. The 20th century’s social contract is disintegrating
During the decades after World War II, workers, employers, and the government entered into an implied social contract which afforded Americans a basic level of social and economic security if they worked hard, followed the law, and took responsibility for their families. Today, Americans believe that 20th century social contract is unraveling and eight in ten (78 percent) yearn for a new one. Indeed, only half (52 percent) of Americans believe that they will achieve the American dream if they work hard and play by the rules and eight in 10 Americans (78 percent) feel their families face greater financial risks than in the past as a consequence. Now, the economy has worsened (85 percent say the economy is on the wrong track, an increase from 64 percent since 2007) and Americans must weather new challenges. Ultimately, Americans feel they can no longer rely on the institutions to which they historically turned for assistance – only two in ten Americans say the federal government helps them achieve economic security, for example: Only 21 percent say the president and 24 percent say the Congress helps them achieve economic security.
2. The American Dream is slipping further from reach
Americans’ faith in their individual economic prospects is low (72 percent say Americans are less secure today than 10 years ago whereas 63 percent believed so in 2007) and their concerns about their personal economic security have more than doubled in the last year (47 percent are worried about their personal economic security now compared to 24 percent in 2007). Four in five Americans (80 percent) rely primarily on themselves, their friends, and their families for financial support – and one in five have borrowed money to pay their bills. Nearly seven in 10 (66 percent) feel they are not saving enough for retirement in comparison to six in 10 just a year ago – and eight in ten members (79 percent) of the middle class feel their retirement savings are suffering, a 14 percent increase since 2007. Americans’ financial crunch is especially apparent in their spending habits: two in three Americans have reduced their spending on vacations and entertainment (64 percent cut back on vacations or entertainment in the past year because of their cost compared to 42 percent in 2007) and one in four are forgoing health care basics because of the costs (25 percent have not gone to a doctor in the past year because of the cost and 23 percent have not filled a medical prescription for the same reason).
3. Generation-Y, the cohort of Americans just entering the workforce, may become America’s next Depression-era Generation
Many members of the next generation to lead our country believe America’s best days are behind it (49 percent of those between ages 18 and 29 say America was a better place to live in the 1990s and will continue to decline). The majority of young people perceive Americans to be less financially secure today than 10 years ago (46 percent of 18 to 29 year olds say Americans today are less secure than they were 10 years ago). Half of Americans between the ages of 18 and 29 are uninsured (compared to 8 percent of older people, 20 percent of Baby Boomers, and 24 percent of Generation X’ers) and six in ten have failed to pay a bill on time (compared to 16 percent of older people, 34 percent of Baby Boomers, and 45 percent of Generation X’ers). Most stunningly, Generation-Y is less optimistic about its economic future than any other age group.
4. Americans are calling out for new solutions
Americans want to work hard and improve their families’ economic standing (80 percent believe they must be responsible for their financial security), but they are also calling out for new products and policy solutions to reinforce their efforts (70 percent say more government programs should help those struggling due to current economic conditions). Americans support major new government investments that create jobs – including public-works projects (82 percent favor), new measures to improve energy efficiency (84 percent favor), and initiatives to expand access to high-quality health care (77 percent favor). Americans also favor investments that make it easier for people to work – for example, paid family leave (68 percent favor) and government-funded child care (66 percent favor).
5. Minorities see bleak outlook: Overall, minorities perceive that they have been hit especially hard by the economic downturn
Nearly all African Americans (96%) and Hispanics (88%) say the economy is on the wrong track, and nearly half believe America’s best days are behind her (47% African Americans and 51% Hispanics). Concern over personal economic security has risen drastically for both groups -- 45% of African Americans and 61% of Hispanics are now worried about their personal finances – compared to only 3 in 10 in 2007. In an effort to address these concerns, 7 in 10 African Americans (73%) and 6 in 10 Hispanics (66%) have cut back spending on vacations and entertainment in order to meet expenses. But in addition to cutting extras, African Americans and Hispanics are making cuts on essentials like healthcare (29% of African Americans have not gone to the doctor in the past year because of cost – up from 20% since last year; Hispanics are 35%, up from 26% last year). However, even with these cuts, 6 in 10 African Americans (60%) and nearly half of Hispanics (49%) have failed to pay a bill on time in the last year.
They are in dire need of assistance: 93% of African Americans and 78% of Hispanics believe the social contract is broken, and 4 in 5 (African American 88%, Hispanics 80%) agree the government should help those struggling. Even more, they believe the government has greater responsibility (66% African Americans and 56% Hispanics) than other groups. But only 1 in 3 believe Congress is being helpful and even less say the President is (9% African Americans, 22% Hispanics). Above all else, both groups are looking for the government to help them empower themselves to achieve financial security. New policies and programs that would increase minimum wage (95% African Americans, 90% Hispanics) and public works that create new jobs (93% African Americans, 87% Hispanics) are the most favored.
Methodology
This survey of 2,008 Americans was conducted from June 19 to June 29, 2008 and was designed to understand attitudes and perceptions towards the economy, the state of the American Dream and social contract, as well as the role of government in helping Americans. The sample is balanced to reflect the US population. The survey was written and analyzed by Penn, Schoen and Berland Associates. SRBI, Inc. conducted phone survey using RDD. Tracking data from the Yankelovich, Inc survey was conducted from February 6 to February 19, 2007.
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