Poll: Americans Expect More Economic Misery in 2023

People shop in a grocery store in Manhattan, New York City, U.S., March 28, 2022. REUTERS/Andrew Kelly
January 3, 2023

A majority of Americans predict 2023 will bring more economic difficulties such as higher taxes and rampant inflation, according to a Gallup poll.

Eight in 10 respondents believe taxes will increase along with the federal deficit, while two-thirds of those polled believe prices will rise and the stock market will continue to tumble.

The polling comes amid troubling signs for the U.S. economy: Home sales fell for the 10th straight month in December and household wealth plummeted by $13.5 trillion in 2022.

Voters' pessimism extends to politics and world affairs with 90 percent of respondents anticipating domestic political conflict and 85 percent foreseeing a "troubled year with much international discord."

Americans' negative views of the economy have weighed down approval ratings for President Joe Biden, who has faced criticism for record-high inflation and deficit spending. A December Wall Street Journal poll found 65 percent of respondents believe the economy is "headed in the wrong direction."

While Republicans and independents are largely pessimistic about the country's prospects in the new year, Democrats are more positive in their predictions, Gallup found:

Majorities of Democrats foresee five positive developments in 2023. These include full or increasing employment (69%), a reasonable rise in prices (53%), a rising stock market (53%), an increase in U.S. power (56%) and a decrease in Russian power (79%). 

Democrats are least likely to predict political cooperation (13%) and a peaceful year mostly free of international disputes (21%).

Meanwhile, 61% of independents and 47% of Republicans expect Russian power in the world will decrease.

Aside from the 36% of Republicans who expect few labor union strikes in the year ahead, no more than 23% of Republicans expect a positive outcome for any of the other 11 dimensions.