Are the Democrats facing trouble?

The United States will hold its midterm elections on 8 November 2022. At this point in time, the midterm stands not only as an indication of where American confidence lies but provides insight into whether political power may swing back into the Republicans' hands.

The Biden presidency has been struggling to control the US economy in recent months. While COVID-19 has presented a range of supply side and demand side issues due to quarantine, it is still caught in an economic struggle with 2Q'22 showing that the US economy contracted by -0.9% annualised, making the second consecutive quarter transaction.  As of July, inflation sits at 8.5% with Real Wages down 3% and unemployment with at 3.7%. Indeed, votes will use the midterm elections to voice their dissatisfaction with the current economic situation.

A recent Gallup poll shows that 40% of respondents think America's top issue is the handling of the economy. Within this overarching concern are concerns surrounding the cost of living, such as increased rent and higher grocery bills. Aside from strict economic concerns, there exists a wider concern surrounding government leadership. This impacts the Biden Administration directly as the President sits at the lowest level of popularity so far during his term, which may weigh down other Democrats on the ballot.