The recession, which has been termed the "Reagan recession", coupled with budget cuts, which were enacted in 1981 but began to take effect only in 1982, led many voters to believe that Reagan was insensitive to the needs of average citizens and favored the wealthy. In January 1983, Reagan's popularity rating fell to 35%, approaching levels experienced by Richard Nixon and Jimmy Carter at their most unpopular periods. Although his approval rating did not fall as low as Nixon's during the Watergate scandal, Reagan's re-election seemed unlikely.