Republicans feel worse about the economy after the election, Democrats unfazed

Expectations for the health of the U.S. economic sank among Republicans after the 2020 elections while Democrats felt neither more pessimistic nor more optimistic.

The drop in Republicans’ outlook was so dramatic that members of the GOP now forecast their least-favorable economic expectations since before President Donald Trump took office in January 2017, according to the University of Michigan’s latest survey of U.S. consumers.

“Interviews conducted following the election recorded a substantial negative shift in the Expectations Index among Republicans, but recorded no gain among Democrats,” Richard Curtin, chief economist for the Survey of Consumers, said in a release.

“It is likely that Democrats’ fears about the covid resurgence offset gains in economic expectations: 59% of Democrats reported that their normal life had changed to a great extent due to the coronavirus compared with just 34% among Republicans,” Curtin added.

Democrat Joe Biden defeated Republican Trump in the 2020 presidential election that took place on Nov. 3. Trump and his legal team have contested the results in a number of key battleground states.

Despite the fall in Republican expectations, members of the GOP are still slightly more optimistic than Democrats, who have for months said they’re more concerned by what Covid-19 could do to economic activity.

Curtin noted that the opinions of both Republicans and Democrats could whipsaw over the next few months as President-elect Biden takes office and if a coronavirus vaccine is approved for widespread use.

Overall, consumer sentiment fell in early November to 77 from 81.8 in October between a record level in daily Covid-19 cases in the U.S. and fears over Biden’s proposed tax plans.

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