Mich. residents lose financial optimism

Personal finances are a source of concern for adults across the state, according to MSU’s quarterly State of the State Survey.

The random telephone survey, which is conducted about four times each year by MSU’s Institute for Public Policy and Social Research, was established in 1994.

The latest survey titled, The Mood of Michigan’s People Approaching Election 2008, randomly polled the opinions of 1,012 Michigan residents on economic and governmental issues.

“In pretty much every category, there has been a trend toward more negative responses,” said Charles Ballard, the director of the survey.

MSU students shared many of the same negative responses as the Michigan residents polled.

Personal Finance

Most Michigan residents polled in the State of the State Survey assessed their current financial situation as being good or fair, and only 5.1 percent described their current financial situation as excellent.

About 20 percent assessed their current situation as being not so good or poor.

Fifty-six percent, more than ever before, said their financial situation was worse now than it was one year ago. In 2007, 44.6 percent of people said their financial situation was worse than one year earlier.

Only about 23 percent said their current financial situation had improved from one year ago.

Predictions

Optimism has also declined. About 44 percent of people, the lowest rate since 1994, anticipated an improvement in their financial situation within the next year. In 2007, about 45 percent of people said they anticipated that their financial situation would improve within one year, and in 2005, 51.4 percent anticipated improvement.

Since 2001, the percentage of people who said they expected their financial situation to improve has decreased by 16.1 percent.

About 35 percent of people said they expect their financial situation to be worse in one year. This percentage has steadily increased over the past several years.

Since 2001, the percentage of people who said they anticipated their financial situation to worsen within one year, has increased by 15.7 percent.

About 21 percent of people said they expect their financial situation to remain about the same.

Assessment of Government

Michigan residents’ assessment of both state and federal government leadership have been increasingly negative since 2002, with one slight exception.

The percentage of people who assessed Gov. Jennifer Granholm’s performance as excellent or good has declined every year since 2002, with a rate of 20 percent this year.

Coincidentally, 21.6 percent of Michigan residents assessed the performance of President Bush as being excellent or good. A slight increase from the 20.5 percent last year, but part of an overall downward trend since 2002.

Published on Monday, May 12, 2008