According to the Edelman Trust Barometer, two in every five people believe their families will be better off. The study conducted by the organization also revealed that economic pessimism was at the highest level in some of the largest economies globally, such as Britain, Germany, Japan, and the United States.

Economic pessimism is at the highest level

The study confirmed how the effects caused by the rising inflation levels and the COVID-19 pandemic. It demonstrated that higher-income households still trusted institutions like the government, businesses, media, and non-profit organizations. However, the same sentiment was not shared by low-income groups.

Richard Edelman of the Edelman communications group noted that the survey, which included more than 32,000 respondents from 28 countries, demonstrated a “mass class divide again.” The survey was conducted between November 1 and November 28 in 2022.

Edelman has also said that the divide was primarily seen during the pandemic because of the differential results in health. The divide was now seen again as part of the effects of high inflation levels. The World Health Organization, among other global bodies, has also noted that the pandemic greatly affected the poor because of the rising cost of basic commodities.

The global study conducted by the organization also found that only 40% of the respondents believed that their families would be better off in five years. This figure significantly dropped from the 50% reported the previous year.

The effects of inflation seem to have mainly been felt in advanced economies. In the United States, only 36% believed they would be better off in five years. The same figure stood at 23% in Britain, 15% in Germany, and 9% in Japan.

A large number of people who were optimistic about their economic situation in the future came from fast-growing economies. Despite the economic disruption witnessed in China, 65% believed that their families would be better off in the next five years.

Growing uncertainty about the global economy

The ongoing war in Ukraine and the rising interest rates by central banks to tame inflation have been among the factors behind economic uncertainty. Last week, the World Bank warned that the global economy could enter a recession this year.

The uncertain economic situation has also dropped trust in key institutions. In the US, the level of trust in key institutions among high-income US respondents dropped to 40% of the low-income groups. The same drop was also seen in countries such as China, Japan, Saudi Arabia, and the United Arab Emirates. Trust in the government has also dropped significantly during the year.