Get ready for another weekend of round-the-clock coverage of the U.S. election cycle. For months, many economists have expressed skepticism regarding whether or not the pending November twenty sixteen elections were impacting the economy.
But for this first time during this election cycle, most economists surveyed by the Wall Street Journal believe that uncertainty originating from the coming election is suppressing economic activity. While every election will spawn some degree of economic uncertainty, more than eighty percent of respondents to the
Journal’s most recent survey of economists rate the current election as generating an unusual level of uncertainty. A majority of these economists, nearly six in ten, say that they economy has suffered as a result.
Economists generally believe that uncertainty has the potential to restrain consumer spending and suppress business investment, particularly if decision makers are faced with significant questions regarding tax and regulatory changes. Until the most recent Wall Street Journal survey, however, the majority of economist thought that even this year’s election did not rise to the level of producing macroeconomic challenges.