Americans are giving the economy its worst rating in 16 years. Not since 1992 have so many rated the condition of the economy so poorly, and never before during those years have more people been as pessimistic about the economic future. It’s no wonder the economy – as predicted here last year – has emerged as the central political issue of 2008.

While economists use complex formulas to derive their assessments, voters look at a few simple indicators, with the price of gasoline fueling economic discontent.

An AP/Yahoo/Knowledge Networks poll asked voters how important 19 issues were to them personally. Only the economy overall outranked gas prices. Indeed, gas prices even eclipsed Iraq, with 59 percent saying gas prices were extremely important to them compared to 48 percent who said the same about the war. Over two-thirds regarded the economy as extremely important.

Seventy-one percent of Americans say gas price increases are causing them financial hardship – just one point below the record. Sixty percent say they have “cut back significantly on