Politics and the economy are uppermost on the minds of $25 million-plus households
The presidential election and the economy are uppermost on the minds of the ultra-wealthy, according to a new Millionaire Corner wealth level study of households with a net worth of $25 million and up (not including primary residence).
Eighty-one percent of respondents said that their primary concern is the present political situation, which is becoming increasingly partisan as incumbent Barack Obama and Mitt Romney officially make their cases to the American public as freshly anointed presidential candidates (an equal percentage said they are worried about America’s security and well-being).
D.C. dysfunction and its impact on the economy is the news story most impacting affluent investors’ economic outlook, according to a separate Millionaire Corner survey last month. How dysfunctional can be seen, for example, in revelations from The Price of Politics, Bob Woodward’s latest book (to be released Sept. 11) that chronicles how the president and Republican and Democratic leaders worked—or didn’t work—together to try and fix the U.S. economy during Obama’s first term. One of the episodes in the book getting press attention is the breakdown last summer of a deal regarding the debt ceiling.
Partisan gridlock, too, was also blamed in part for America’s slippage from No. 5 to No. 7 in the World Economic Forum’s annual Global Competitiveness Report, just as it was last summer for Standard & Poor’s decision to lower the country’s credit rating.
The election, just over two months away, is a concern for 80 percent of the ultra-wealthy, while a near equal percentage (79 percent) said they are most concerned about the U.S.economy.
Global and domestic economic concerns weigh most heavily on the ultra-wealthy, including increased taxes (78 percent), which has become one of the key issues in the presidential campaign with the looming fiscal cliff and the as yet unresolved issue of whether or not to extend the Bush-era tax cuts, which are scheduled to expire at year’s end.
Nearly three-quarters (73 percent) are concerned about stock market conditions, while 69 percent are monitoring closely the ongoing European debt crisis. Employment, inflation and gas and oil prices are of concern to six-in-ten of respondents, while 58 percent are keeping a close watch on China.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.