A state of economic anxiety
Mass. residents believe recovery will be slow and long, poll indicates
Massachusetts residents believe the economy has begun to rebound, but they remain worried about their jobs and cautious about spending, suggesting a slow and difficult recovery ahead, according to a Suffolk University/Boston Globe poll.
While the poll indicated that nearly two of three respondents think an economic recovery is underway, it also revealed increasing anxiety. Less than one-third of those surveyed expected the economy to get better by the end of the year, a more pessimistic view than reflected in a similar poll conducted in the spring.
Also increasing is the fear of job loss. Forty-four percent of those surveyed last week said they were concerned about keeping their jobs, including 15 percent who were “very concerned,’’ slightly more than in the spring.
The poll, which was conducted Oct. 11-13 and includes answers from 400 residents across the state, “suggests something darker than slow recovery,’’ said Alan Clayton-Matthews, an economics professor at Northeastern University. “It had seemed we hit the bottom this summer, but I’m not so sure anymore.’’
The numbers underscore the fragility of a recovery that has been supported by massive government spending, including consumer tax breaks targeted at hard-hit industries such as housing and automobiles.
Despite clear signs of an improving economy, including a surging stock market, unemploy ment continues to rise, undermining the confidence of consumers, whose spending drives the US economy.
The state unemployment rate rose to 9.3 percent in September, the highest since 1976. The national rate, 9.8 percent, is the highest since 1983. Some economists worry whether the recovery can be sustained if consumers don’t pick up their spending as federal stimulus programs begin to fade. Meanwhile, 41 percent of the people who were polled said they were spending less than six months ago, compared with 37 percent in March.
The recent increase in the state sales tax, to 6.25 percent from 5 percent, is also squeezing consumers, according to the poll. Nearly 40 percent said the added tax led them to cut spending.
Bill Fitzgerald, 52, of Weymouth, is typical of the kind of consumer worrisome to economists. Even though Fitzgerald, a father of two, still has his job, he and his family have cut their spending. For example, he said, they’ve stopped going to restaurants, movies, or even video rental stores.
“You have to spend wisely, be prepared, because you never know when your job is going to be gone,’’ Fitzgerald said. “I don’t get the sense it’s getting much better out there.’’
Many others don’t either. Nearly half of those surveyed said the economy would need three or more years to recover. In March, less than one-third expected it to take so long.
At first glance, it’s surprising that residents were more optimistic in March, when conditions were much worse, said David Paleologos, director of Suffolk University’s Political Research Center. But hopes were being raised in March by the first hints that the worst was over and a quick recovery might be on the way.
Since then, Paleologos said, hope has given way as people realize it will take time to repair the damage from the worst housing and financial crashes since the Great Depression. The pace of layoffs has slowed, but employers are reluctant to hire. Credit remains tight. Home sales are rising, but foreclosures remain high and the market sluggish.
In the poll, only 5 percent said they were thinking about buying a home in the next six months. Only 6 percent said they were thinking of selling.
“We’re still seeing that glimmer of light at the end of the tunnel,’’ Paleologos said, “but we’re realizing the tunnel is longer.’’
The poll did contain some of that glimmer. For example, the number of people who said they were “very concerned’’ about maintaining their standards of living declined to 28 percent from 32 percent in March. The number who said they were “very concerned’’ about paying mortgages slipped to 13 percent from 14 percent.
Leonard Garfield, 96, of Peabody, said he’s been buoyed by a rising stock market. Garfield, who lived through the Great Depression, said it could be much worse.
“I’m getting Social Security. I still have stocks,’’ he said. “I’m much better off than I was then.’’
For the most part, Massachusetts residents said they have benefited little from the recent pickup in economic activity. For example, eight in 10 said the $787 billion federal stimulus package approved earlier this year has had no impact on their lives.
Nearly one in five said someone in their household has lost a job during the recession. Of those, three-fourths are still out of work and more than half have been unemployed for at least six months, according to the poll, which has a margin of error of plus or minus 4.9 percent.
Meanwhile, President Obama’s approval ratings have suffered in Massachusetts. Fifty-seven percent approved of his handling of the economy, down from 65 percent in March, according to the poll. Governor Deval Patrick’s approval rating was unchanged from March, remaining low. Only 28 percent approved of his handling of the economy.
For Colleen Pina-Garron of New Bedford and her husband, Christopher Garron, these are particularly anxious times. Both are state employees. Last week, Patrick warned he might have to cut as many as 2,000 jobs because of a growing budget shortfall. State workers are also facing the prospect of pay and benefit reductions.
Pina-Garron, a state probation officer, said the couple are cutting expenses by dropping the premium channels in their cable television package and no longer going to restaurants, among other things. “The stock market is going up, but that’s not helping middle-class people,’’ she said. “You never know when the bottom is going to drop out in this economy.’’
Still, she believes some good may come from this historic recession.
“It’s brought people closer to their families,’’ she said. “Hard times make people sit back and reflect on what’s important in life. I think the future is going to be better.’’
Robert Gavin can be reached at rgavin@globe.com. ![]()




