ON THE AGENDA | JULY 20TH, 2010 | Scott Bittle
For the first time, the Pew Research Center survey reports reducing the deficit is a higher priority than spending to stimulate the economy – but that may say more about public attitudes toward the stimulus than it does about the deficit. As recently as February, the Pew survey found the public evenly split on reducing the deficit versus spending more to help the economy (47 percent each). Now the deficit comes out ahead, 51 percent to 40 percent.
As recently as February, the Pew survey found the public evenly split on reducing the deficit versus spending more to help the economy (47 percent each). Now the deficit comes out ahead, 51 percent to 40 percent.
Reducing the deficit also beats out cutting taxes by a similar margin (51 percent to 41 percent).
Yet as we've noted before, surveys show the economy consistently beats out the deficit (and everything else for that matter) as the public's biggest concern. So what's the deal? We think the answer lies in the other big takeaway in this survey, headlined "Gov't Economic Policies Seen as Boon for Banks and Big Business, Not Middle Class or Poor." As Pew puts it:
The public sees clear winners and losers from the economic policies the government has implemented since the recession of 2008. Most Americans say these policies have helped large banks, large corporations and the wealthy, while providing little or no help for the poor, the middle class or small businesses.
Strong majorities say the government has done a "great deal" or a "fair amount" to help banks (74 percent), large corporations (70 percent) and the wealthy (57 percent). And majorities also say that the government has helped other groups "not too much" or "not at all", like small business (68 percent), middle-class people (68 percent) and poor people (64 percent).
Add to that the fact that relatively few people surveyed by Pew say they've seen direct effects from the stimulus. Two-thirds say it's increased the budget deficit, but only 43 percent say they believe it has led to improvements in roads, bridges and other infrastructure in their area. A mere one-third say the stimulus helped keep unemployment from getting even worse, and 29 percent say it helped state and local governments avoid layoffs and budget cuts.
Economists can and do argue that this isn't an either/or choice; that the nation can both spend more now to push the economy and make progress on its long-term budget problems. Given perceptions like this, however, it's no surprise that the public is skeptical.