National Economic Council Director Kevin Hassett dismissed recent polls showing Americans deeply dissatisfied with the economy, arguing that consumer spending tells a very different story from voter surveys as the midterm elections approach.
Hassett Points To Strong Consumer Spending
“Ahead of an election cycle, the fact that there’s possibly partisan pollsters telling us that the people are really, really depressed, it’s a classic Democrat move,” Hassett told CNN’s Jake Tapper on Sunday. “And I just don’t buy it.” He said strong consumption and retail activity were “radically inconsistent with the polls.”
Government data support Hassett’s spending argument. Personal consumption expenditures jumped 0.9% in August, or $190.8 billion, while U.S. retail and food-service sales rose 1.2% from July and 6% from a year earlier, according to the Commerce Department.
“But, in fact, the retailers are doing well,” Hassett said, adding that banks tell him consumers are paying back their loans. He contrasted those trends with polling that he said exaggerates economic pessimism.
Polls Still Show Deep Economic Frustration
The polling, however, shows substantial frustration. An AP-NORC survey conducted Sept. 24-28 found only 26% approved of President Donald Trump’s handling of the economy, while just 17% approved of his handling of living costs. About 65% said Trump’s policies contribute to unusually high prices.
That discontent comes as affordability and fuel prices increasingly shape the midterm debate. Consumer prices rose 3.4% year over year in August, while gasoline jumped 3.9% during the month, according to the Labor Department.
Jobs And Fuel Costs Complicate Picture
Economic growth has remained positive. According to the final (third) estimate released by the U.S. Bureau of Economic Analysis (BEA) last week, ‘Real GDP’ expanded at a 2.2% annualized rate in the second quarter, with consumer spending among the contributors. But September payroll growth slowed to just 29,000 jobs, while unemployment edged to 4.2%, highlighting a softer labor market than Hassett’s spending argument alone suggests.
The administration also faces pressure from elevated energy costs tied to the Iran conflict. Diesel prices above $6 have become an affordability issue, while gasoline remained above $4 nationally in late September. EIA data put regular gasoline at $4.465 and diesel at $6.382 on Sept. 28.
Hassett nevertheless argued that “actions speak way louder than words,” saying Americans’ continued spending offers a better gauge of economic confidence than polls.
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