Power Rankings: What's in an Economy?

 

Power Rankings: What's in an Economy?

**Voters disapprove of Trump on cost of living and inflation, but polls show they're no happier with the Democratic alternative**

## The Paradox of 2026

Here's the thing about American politics right now: nobody's happy.

The economy is the number one issue heading into the midterms. Inflation is cooling, but it's still painfully high. Gas prices are through the roof. And voters are looking for someone to blame.

They're blaming Donald Trump. Big time.

His approval rating on inflation and the cost of living just hit a record low of 17% — with 69% of Americans disapproving of how he's handling it. His overall approval rating has sunk to 33%, the lowest since the Financial Times started tracking it in May. Even among Republicans, only 72% approve of his performance — another fresh low.

But here's the kicker: voters aren't exactly rushing into the arms of the Democratic alternative either.

For the first time in nearly a decade, Americans now say they trust Democrats slightly more than Republicans on the economy. A Reuters/Ipsos poll found 37% of registered voters prefer the Democratic approach, compared to 36% for Republicans. It's a lead, sure — but it's barely a lead. It's more like a shrug.

So what's going on? Let's break it down.

## Trump's Dismal Numbers: A Deeper Dive

The numbers are brutal for the White House. And they're getting worse.

Only 33% of registered voters approve of Trump's performance as president. That's down three points from the previous month and the lowest ever recorded in the FT/Focaldata poll.

On the specific issue of "inflation and the cost of living," his net approval is a staggering 17% — with 69% disapproving. On "jobs and the economy," his approval has slid to 26%.

And here's the part that has to hurt: even his own voters are turning on him.

Among Republican voters, only 53% approve of the president's handling of jobs and the economy — a nearly eight-point drop from the previous month. A slim majority of Republicans — 51% — actually disapprove of Trump's handling of inflation. When your own base is questioning your economic competence, you've got a problem.

The broader sentiment is even more damning. Sixty-six percent of Americans say the economy is heading in the wrong direction. Fifty-seven percent say they are financially worse off under Trump — up from 53% the month before. Only 18% say they're better off.

As one political scientist put it: "Economic anxiety is usually bad news for the party in power. When people are worried about paying bills or buying gas or putting food on the table, they blame whoever is in charge".

## The Democratic "Lead": Why It's Not a Victory Lap

So if Trump is underwater on the economy, why aren't Democrats celebrating?

Because their "lead" is barely a lead at all.

In the Reuters/Ipsos poll, 37% of voters said Democrats have a better approach to the economy, compared to 36% for Republicans. That's a one-point margin — well within the margin of error. Twenty-seven percent said they weren't sure or thought a different party would do better.

On cost of living specifically, Democrats do slightly better: 36% prefer their approach, compared to 28% for Republicans. But again, that leaves more than a third of voters either unsure or convinced that neither party has a good answer.

The bottom line: voters are unhappy with Trump, but they're not exactly excited about the alternative. It's not a mandate for Democratic policies. It's a rejection of Republican ones.

## Why Voters Are Still Skeptical of Democrats

The Democratic lead on the economy is a relatively new phenomenon. Republicans held the advantage on the economy through most of Trump's first term, throughout Joe Biden's presidency, and into Trump's second term.

What changed? The Iran war.

Gasoline prices have surged by more than 25% since the U.S.-Israeli attacks on Iran began in February, with Americans paying more than a dollar extra per gallon at the pump. The Strait of Hormuz remains effectively closed, and diesel prices have hit all-time highs.

But voters aren't just blaming Trump for high prices — they're also questioning the broader economic picture. In one poll, 65% of respondents said they believe Trump's policies are making the economy worse in the short term, and 50% said the administration is making it worse in the long term. Nearly 70% said they are not getting a clear understanding of the situation in the Strait of Hormuz.

The war has become a major liability for the administration. And while Democrats have been critical of Trump's handling of the conflict, they haven't offered a clear alternative vision that resonates with voters.

## The Midterm Implications

All of this matters because the midterms are just two months away.

Republicans are defending narrow majorities in Congress, and the economic discontent is cutting across party lines. Registered voters currently give Democrats a 7.5-point lead in the generic congressional ballot — up from 5 points last month.

But here's the twist: 46% of voters say Trump is making it harder for Republican congressional candidates to win. Forty-seven percent of independents say a Trump endorsement would make them less likely to support a candidate.

In other words, Trump is becoming a liability for his own party — even as the Democratic alternative fails to inspire much enthusiasm.

## The Affordability Crisis

Underpinning all of this is a deep sense of financial strain that transcends partisan politics.

A Harris Poll conducted in early July found that 95% of Americans consider the U.S. to be in an affordability crisis driven by rising costs of groceries, gas, and other expenses. Fuel prices remain elevated, and diesel has surpassed its all-time high.

In the FT/Focaldata poll, 40% of respondents said inflation and the cost of living were their most pressing concerns — making it the top issue heading into the midterms. Twenty-nine percent said the economy and jobs were the No. 1 issue.

For voters struggling to make ends meet, the details of monetary policy and trade negotiations matter less than the simple fact that everything costs more than it used to.

## The Bottom Line: A Plague on Both Your Houses

Here's the reality of the 2026 political landscape: voters are frustrated, anxious, and looking for someone to blame.

They blame Trump for inflation, for the war, for high gas prices, and for an economy that feels like it's working against them. His approval ratings on the economy are in freefall, and even his own supporters are losing confidence.

But they're not rushing to embrace Democrats either. The Democratic "lead" on the economy is narrow, fragile, and largely driven by the collapse of Republican support rather than a surge of enthusiasm for the other side.

As Christopher Galdieri, a political science professor at Saint Anselm College, put it: "Economic anxiety is usually bad news for the party in power. When people are worried about paying bills or buying gas or putting food on the table, they blame whoever is in charge".

Right now, that's Trump and the Republicans. But if voters don't see a convincing alternative, they might just stay home — or hold their noses and vote for the lesser of two evils.

Either way, the economy is the issue that will decide this election. And neither party has figured out how to make voters feel good about it.

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## Frequently Asked Questions (FAQs)

**1. What is Trump's current approval rating on the economy?**

Trump's approval on "jobs and the economy" has fallen to 26%, while his approval on "inflation and the cost of living" is at a record low of 17%.

**2. Do voters prefer Democrats or Republicans on the economy?**

For the first time in nearly a decade, a slight plurality of voters prefer Democrats over Republicans on the economy — 37% to 36% in a recent Reuters/Ipsos poll.

**3. Why are voters so unhappy with the economy?**

Inflation remains elevated, gas prices are up more than 25% since the start of the Iran war, and diesel has hit all-time highs. Sixty-six percent of Americans say the economy is heading in the wrong direction.

**4. Are voters better off under Trump?**

No. Fifty-seven percent of registered voters say they are financially worse off under Trump, while only 18% say they are better off.

**5. What does this mean for the midterm elections?**

The economy is the top issue for voters heading into the midterms. Democrats currently lead Republicans by 7.5 points in the generic congressional ballot, but the Democratic advantage is driven more by dissatisfaction with Trump than enthusiasm for the alternative.

**6. Is Trump hurting Republican candidates?**

Yes. Forty-six percent of voters say Trump is making it harder for Republican congressional candidates to win, and 47% of independents say a Trump endorsement would make them less likely to support a candidate.

**7. What is the biggest issue for voters?**

Forty percent of voters say inflation and the cost of living are their most pressing concerns, followed by the economy and jobs at 29%.

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## Disclaimer

*This article is for informational and educational purposes only and does not constitute financial, investment, tax, or legal advice. The views expressed are based on publicly available polling data and news reports as of September 8, 2026. Polling data, approval ratings, and political dynamics are subject to change. The author does not endorse any political party, candidate, or policy position. Before making any decisions based on the content of this article, please consult with qualified professionals who can evaluate your specific situation.*