News Markets Media

USA | Europe | Asia | World| Stocks | Commodities

Home News USA Creating Jobs or Controlling the Budget Deficit? Majorities Favor Jobs Now and Deficit Reduction Later


Creating Jobs or Controlling the Budget Deficit? Majorities Favor Jobs Now and Deficit Reduction Later
added: 2010-03-24

Deficit hawks criticize the administration and the Democrats for excessive spending and the huge budget deficit. Many Liberals and Keynesian economists have argued that we need more stimulus spending to reduce unemployment and get the economy moving faster. A new Harris Poll looks at public opinion on this issue. It finds that almost two-thirds of all adults think it more important now, to create more jobs than control the deficit. Looking to the future, two-thirds of the public also believe that, over the next five years, deficit reduction should be a higher priority than creating more jobs. However, and this may be the most important finding, less than a quarter of the public believes that increased government spending actually creates new jobs.

These are some of the results of The Harris Poll of 2,320 adults surveyed online between March 1 and 8, 2010 by Harris Interactive.

The main findings of this Harris Poll include:

- A 49% to 22% plurality of adults do not believe that increased government spending creates new jobs, with 29% not sure.

- Even among Democrats, who are more likely to believe this element of Keynesian economics, only 38% believe it.

- A 63% to 30% majority of adults, including majorities of Republicans, Democrats and Independents, believe it is more important for the government to create more jobs than to control the budget deficit – at least for this year.

- However, a somewhat larger 66% to 23% majority of adults believe that over the next five years, controlling the budget deficit is more important than creating new jobs. Majorities of Republicans, Democrats and Independents all agree on this.

- In reply to a different question, a 50% to 38% plurality thinks that over the next year controlling spending to reduce the deficit should be a higher priority than continued stimulus spending to create jobs. Most Republicans (69%) and Independents (52%) agree with this, but a modest 55% to 32% majority of Democrats disagree.

So what?

This Harris Poll highlights a huge communications problem for the administration and the Democrats. It is widely believed by economists, especially Keynesian economists, that deficit spending creates jobs. However, only 22% of adults believe this. Of course, this belief is the central reason for the government’s economic policies and the stimulus spending that has greatly expanded the budget deficit.

These results go a long way towards explaining the unpopularity of the government’s economic policies and the public’s reluctance to believe that the government is doing enough to create jobs and strengthen the economy. While most people attach a very high priority to new job creation, they do not believe that stimulus spending is an effective way to do this.


Source: Business Wire

Privacy policy . Copyright . Contact .