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MPR Poll: Personal finances flat while gas prices rise
by Jeff Horwich, Minnesota Public Radio
July 22, 2004

The latest MPR-St. Paul Pioneer Press poll shows many people are still worried about high gasoline prices -- although most have not changed their behaviors much to reduce their gas consumption. (MPR file photo)

There may be an economic recovery going on, but many Minnesotans are still waiting to feel it. According to a new Minnesota Public Radio-St. Paul Pioneer Press poll, most people say their household financial situation has not changed over the past year. One thing they are feeling is higher gas prices -- though most people have not been concerned enough to change their driving habits.

St. Paul, Minn. — The poll earlier this month asked 625 registered voters about their finances, the price of gas, and their thoughts on inflation and interest rates. We found Minnesotans in something of a holding pattern: Fifty-three percent said their financial situation is the same as it was a year ago. The rest were evenly divided -- 23 percent said they were better off, 23 percent said worse. The poll has a margin of sampling error of plus or minus four percentage points.

Pollster Brad Coker with Mason-Dixon Polling and Research says, on the bright side, these numbers are actually more positive than polls in other parts of the country. And things look more upbeat when you ask people what they expect for the coming year.

"Pessimism is actually at a relatively low level in Minnesota," Coker says. "Only 8 percent of people we polled think they're going to be worse off a year from now."

Nearly 30 percent believe the next 12 months will be better than the last. Sean Novack, 33, of Minneapolis is one person glad to put the economic downturn behind him.

"For me personally, it's gotten much better," he says. "I did lose my original job to this recession. I worked at Wells Fargo as a mortgage analyst. I went from being a DJ to a security officer. I found jobs where I could. You tough it out."

When you get excited about a gallon of gas being $1.80, that's pretty bad. - Poll respondent Terry Rousseau of Two Harbors

Recently someone at the insurance company Primerica spotted Novack's resume online, and offered a steady job selling insurance. Novack is also optimistic about being back in school, studying business management.

Terry Rousseau of Two Harbors is among those polled who remain more ambivalent. "I said, 'stayed about the same'" when answering the survey, he says, "but it's kind of shaky. Getting worse."

Rousseau works for the computer hard drive maker Seagate, which announced 7 percent layoffs in June. He stayed, but some good friends didn't.

Rousseau is also particularly stung by gas prices. He drives every few days from his home in Two Harbors to Seagate in the Twin Cities -- a three-hour trip.

"When you get excited about a gallon of gas being $1.80, that's pretty bad," Rousseau says. "I'm spending about $100 a week going back and forth."

Rousseau can't do much about his commute. But he limits his driving once he reaches the Twin Cities -- for instance, cutting out trips to the park after work. Like Rousseau, 34 percent of Minnesotans polled have cut back driving in their daily life, while 35 percent have decided to stay closer to home for a vacation.

But only 16 percent said gas prices inspired them to walk, use the bus, or ride a bike, and just 7 percent joined a carpool.

Gasoline prices aren't the only prices on people's minds. Amy Stafford is a minister's wife in the tiny Polk County town of Lengby. She watches for inflation at the supermarket, but sees nothing to be alarmed about yet.

"I would say there are ups and downs, sporadically, for a couple months," she says. "Something will be higher -- like beef was higher for a while. But in general it seems like if something goes down, something else seems to go up. It just kind of evens out."

Fifty-seven percent of people surveyed said they were "very" or "somewhat" concerned about inflation; 42 percent were "not too" or "not at all" concerned. Minnesotans had a similar middle-of-the-road response when asked about the prospect of rising interest rates -- 60 percent had "mixed feelings" about it.

Pollster Brad Coker says opinions on these questions are often a matter of historical perspective.

"Everybody's always concerned about interest rates and inflation. But where we are today compared to where the country was 20 or 25 years ago in our history, I don't think we're looking at inflation that's strangling, or interest rates that are going to keep people from borrowing at all," Coker says.

Even though many Minnesotans may not have dramatic feelings about economic questions, their opinions matter. In another section of the poll, we asked people what issue would most influence their votes in November. At the top of their list -- the economy.

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