Public is Optimistic but Remains Divided on Nation's Budget Priorities

Media pollsters of late have noted the remarkable uptick in public optimism about the economy since President Obama's inauguration. An ABC News/Washington Post poll last week indicated a double-digit rise in those saying the country is headed in the right direction and a double-digit decline in those saying the economy is getting worse. A CBS News/New York Times poll released today shows almost identical results: 39 percent of Americans think the country is headed in the right direction (up from 15 percent in mid-January) and 34 percent say the economy is getting worse (down from 54 percent in mid-January).

Surely these are significant indicators of a clear shift in public sentiment about the economy. Americans are feeling more optimistic than since the economic crisis began. But a major public debate has been over the federal budget. The bipartisan consensus, a view shared by President Obama and one that we discuss in more detail at FacingUp.org, has been that in order to stimulate the economy, the government has to borrow and spend heavily. But how much and what kind of spending has been a matter of fierce debate.

The analysis provided by the New York Times understates some key findings from the poll where the public weighs in on this very issue of delicate balance. Nearly two-thirds (63 percent) of the American public is "very concerned" that increasing the national debt will create hardships for future generations, with 28 percent saying they are "somewhat concerned." But when the dangers of an accumulating deficit are posed alongside the need to stimulate the economy, respondents are evenly split: 45 percent favor more government spending to stimulate the economy, at the expense of a ballooning deficit and national debt, while 46 percent favor reducing the deficit.

One of the most noteworthy findings in the CBS/New York Times poll is the near-even split among respondents to a question pertaining to the size of government. While 41 percent say they would rather have a bigger government providing more services, 48 percent say they'd prefer a smaller government provided fewer services. Certainly public attitudes have more or less always been divided over the size and scope of government, and perhaps always will be, but consider the responses in later sections of the survey: 74 percent support increasing federal income taxes on households with incomes of more than $250,000 a year, 71 percent say government should increase regulations on banks and financial institutions, and 64 percent believe companies should have to accept government instructions on how to run their business as a condition for receiving aid.

Also important to keep in mind is the fact that there is a considerable volume of double-digit "don't know" responses to Obama's budget and economic proposals: whether the new tax proposals will hurt or help the economy (40 percent say "haven't heard enough" or "don't know") and whether new spending proposals will hurt or help the economy (34 percent say "haven't heard enough" or "don't know"). This is always a warning sign that public opinion may be more unsettled or uncertain than it might seem.