Why Is Obama's Approval Falling as the Dow Climbs?

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Jan. 7 (Bloomberg) -- Langer Research Associates Founder and President Gary Langer discusses President Obama's approval ratings and the U.S. economy on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Is recovering.

These two things going together.

The incumbents should be doing well, too.

Gdp had a good number at the end of the year.

Obama's's approval numbers have been at the lowest they have ever been.

We took a look at the current approval number and compared it to the dow, up 27% in 2013, cruising past extent thousand 500. they totally diverge between his approval number and the dow.

Maybe not the best engage right there.

There is a major difference.

We took a look at whether people in the country is on the right or wrong track compared to the consumer comfort index.

Same type of issue.

63% of americans think the country is on the wrong track.

Consumer comfort index is at its highest level in six years.

I think it is very frustrating for the obama administration and democrats all over washington as they try to figure out how to connect what is going on with the numbers and what is going on with policy.

We can talk about presidential approval, but what actually generates those opinions?

What are people really responding to?

There is a sense of -- improving our economy will reflect back on the president and that is badly misguided.

It is not the case.

There is only a weak correlation between economic sentiment and approval.

It shows up when the economy is tanking.

In a bad economy, it is essentially impossible for a president to be popular.

All a good economy does is create the possibility that the president can then work with policy and public attitudes and gain and hold popularity.

The economy, not necessarily.

But what about the notion of, how are we feeling, are we safe?

All of these other issues.

That part of the approval rating?

On we talk about the economy, we are not merely talking about the essence he and the doubt area the outlook asks are three things from government at the end of the day.

Liberty, security, and the opportunity for prosperity.

Not that promise, but the opportunity.

In many americans lives, that is still lacking even with the approval.

We have got a chart that may show that wealth.

Income inequality in the united states.

Put together by two academics who have studied this for quite some time.

It basically shows not since 1917 have we seen the top 10% do as well compared with the rest.

Everybody at the top and is doing very well.

Most of the rest of american do not feel like that.

It is somewhat exaggerated.

Everyone talked about how well the market did.

Investors benefited from it.

It was the coffee shops in capitol hill who said, they have got no business for two least.

There is no correlation between the stock market and the way people feel about the economy.

Two factors, income disparity and wealth disparity.

The top one percent of americans emily last year had 22.5% of the income.

Another way to look at it is the richest 20% of u.s. families own 89% of all wealth in the country.

Those are people more likely to be invested in the stock markets and doing well and to be feeling better about it.

The vast majority of americans, if a own stocks, do so passively and indirectly and will check it in 20 years.

Whether the market is up or down in a given moment is less germane to them than the employment situation and income situation, both of which are not very good at all area the vast majority of americans in this country do not have a college degree.

If you do not have a college degree, your real income has declined.

By how much?

20%. phil, is the president getting any feet for the washington gridlock?

Some have said there are no diplomats left.

Bill clinton figured out how to get d.c. to work together.

The president has not done that and is that affecting his approval rating?

It is.

Gary made a great point that the economic numbers could look great but that only gives you a base.

You still have to do something with it.

People look at the approval ratings in congress and the white house and they look at all of the issues and problems and fights they have had.

That will never contribute to a positive move.

If it does not look like you are doing any ng and if unemployment is still at seven percent, you have income inequality issues and are still fighting for emergency unemployment benefits, there is no way the numbers will transform your ministration into looking better.

Question president, this is his big issue for 2014. what does the white house the as a wedge where he can raise his popularity and get something done?

They feel good about this issue.

They feel this is their big picture issue.

Minimum wage, some of the recent polling, people like the idea of increasing the minimum wage.

72% of the -- they will push to get early state of the union shortly thereafter.

They feel this is the issue they can really grab onto frustration americans might be feeling, the frustration that leads to poor poll numbers and help boost them throughout the year, especially if republicans continue to oppose it.

An amazing statistic, and maybe you can offer some of your own stats on this.

In 35 states in the u.s., unemployment that if it's exceed federal minimum wage on an annualized basis.

It is interesting.

It is easy to support raising the minimum wage.

Why not.

We did a poll question in which we did pros and cons.

Some people say it will help low income families get by.

Others say it will reduce jobs by forcing businesses to cut amp limit.

We still find two thirds of americans in support of raising the minimum wage.

There is broad support for it and it is potentially a political plus for the president and so is the fact americans by a 20 point margin see a place for the government to address the wealth gap in this country.

There is broad concern about it.

There is fundamental disconnect right now between the desire for the opportunity for prosperity we discussed and their offense.

This speaks to a not that i read this morning in the new york times talking about as far as millennial's or young people, they turned from a l beam -- a lima bean economy to an end mommy -- at a mommy -- edamami economy.

I want -- it is not what other people want.

They want to be in a lobby even if it is dimly lit.

I want to experience something.

They say the basic rule of happiness is to not buy things.

By experiences.

Do you see that shift?

[laughter] it is so hard for me to say what stories stood out to you.

So hard for me not to say elliott in jamaica.

Would you back this up that people want experiences right now?

I people, to the extent people want experiences, they want choices.

They want the opportunity to have a job they can count on and have growing in, and then to have the scratch and to do things with it.

To have enough income to take care of your friends and family and yourself as you wish.

We will also talk about blackberry positive turnaround strategy.

Is it worth saving?

This text has been automatically generated. It may not be 100% accurate.


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