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Chicago Booth/Kellogg School Financial Trust Index reveals highest level of
anger about the economy since 2013

Wave 29 Results

Overall Trust Level



 



 



 




Paola Sapienza and Luigi Zingales1


CHICAGO (February 9, 2021) — The latest set of results of the Financial Trust
Index (FTI), conducted in December 2020, shows a decrease of trust in financial
institutions and increased anger with the economy. The FTI was created to
measure the overall level of trust in American institutions and is administered
by the University of Chicago Booth School of Business and Northwestern
University’s Kellogg School of Management. The new wave indicates a decrease in
public trust in financial institutions to approximately 31.3 percent, after
reaching its highest level in 2019, at 33.3 percent. The falling level of trust
in large corporations is the primary driver of the recent decline, decreasing
from 21.9 percent in 2019 to 18.9 percent in 2020.

Anger about the US economy reached its highest level since 2013, with 40.3
percent of those interviewed reporting being angry at the current economic
situation. Although the increase occurs independently of political affiliation,
the rise was particularly robust amongst Republicans, whose anger more than
doubled in the period, from 18.1 percent in 2019 to 38.9 percent in 2020.

Other key findings include:


 * Second-highest level of trust in the US Government Trust in the government
   increased from 21.5 percent to 25.6 percent. Republicans' trust in the
   government reached a record high at 31 percent. Although the story remains
   the same for white and Black people, Hispanic people's trust in the
   government fell approximately 16 percent, compared to last year.
   
   
 * Trust in the Fed continues to increase
   Trust in the Federal Reserve reached its highest level since inception in
   2020 at 41.9 percent. The increase was driven primarily by people with at
   most some college education.
   
   
 * Large disparities of trust in the market system between racial groups
   Although trust level decreased slightly, from 32.8 percent to 28.3 percent in
   2020, we found large disparities of trust in the market system between racial
   groups. White people's trust in the market system remained the same, while
   Black people's trust increased by almost 10 percentage points to 35 percent.
   Meanwhile, Hispanic people's trust decreased significantly, from 40.8 percent
   in 2019 to 17.9 percent in 2020.
   
   
 * A fifth of respondents do not trust the police
   21.7 percent reported they have no trust in police, and only 50.8 percent
   reported some trust. The differences in trust in police are especially
   distinct across races. Approximately 58.3 percent of white people replied
   that they trust the police, while only 33.3 percent of Black people share
   their trust. More importantly, 39.9 percent of Black people reported not
   trusting the police. Lastly, we can also see some differences across the
   political spectrum, with 61.7 percent of Republicans trusting the police,
   compared to only 43 percent of Democrats.





ABOUT THE SURVEY: The Financial Trust Index captures the level of trust that
Americans have in institutions. The study was conducted for the Financial Trust
Index via telephone by SSRS, an independent research company. Interviews were
conducted between December 21–29, 2020, among financial decision-makers. A total
of 1,023 interviews were conducted, with a margin of error for total respondents
of +/-3.64 percent at the 95 percent confidence level. The study was conducted
for the Financial Trust Index via telephone by SSRS, an independent research
company. More information about SSRS can be obtained by visiting www.ssrs.com.




1 Paola Sapienza is the Donald C. Clark/HSBC Chair in Consumer Finance Professor
at the Kellogg School of Management at Northwestern University. Luigi Zingales
is the Robert R. McCormack Distinguished Service Professor of Entrepreneurship
and Finance and the Faculty Director of the George J. Stigler Center for the
Study of the Economy and the State at the University of Chicago Booth School of
Business.





        
             



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