Americans Embrace Big Government to Help Solve Market Crisis
By Edwin Chen and Matthew Benjamin
Oct. 15 (Bloomberg) -- Americans are looking to big
government to dig the country out of the financial crisis, a
Bloomberg/Los Angeles Times poll shows.
A plurality of voters support the $700 billion financial-
market rescue bill President George W. Bush signed into law Oct.
4. That is a turnaround from a Bloomberg/Times poll in September,
when a solid majority said it wasn't the government's
responsibility to bail out private companies.
The poll conducted Oct. 10-13 also finds that Americans
favor the federal government providing assistance to homeowners
facing foreclosure, by a greater than 2-to-1 margin. And almost
three-quarters say they believe insufficient government
regulation contributed to the financial and housing crises, up
sharply from September.
Poll respondents say they want government to step in.
``They have to do something to spur the economy, otherwise
we'll be further in the hole than we already were,'' says Mike
Hackenberg, 36, an independent voter and warehouse worker who is
studying to be a teacher in Rainier, Oregon. ``They're making the
right effort to back the banks and reassure foreign investors.''
Democrat Rudolph Green, a retiree in St. Louis, Missouri,
agrees.
`Turmoil'
``The world is in turmoil,'' he says. ``For people who are
trying to pay their mortgages, they need a little help.''
Reece Trebett, a retired steelworker in Chandler, Arizona,
says the 11 percent increase in the Dow Jones Industrial average
Oct. 13 -- the biggest single-day rally in seven decades --
showed the Treasury's plan may calm the waters.
``The response in the stock market today is evidence it
might work,'' says Trebett, 66, a Republican.
At the same time, some respondents say they are
uncomfortable about the way the rescue is being handled.
``They should have done it differently,'' says Virginia
Nerlove, 58, a retired accountant and Republican voter in
Henderson, Nevada, which has been hit hard by the housing bubble.
``They bailed out the banks instead of the people.''
In addition, by a margin of 48 percent to 44 percent, poll
respondents say they aren't certain the steps taken by the
government will be enough.
``We're helping out these bigger banks, maybe that will
trickle down eventually, but who knows,'' says Republican Joyce
Berry, 67, a retired nurse in Port Orchard, Washington.
Insurgent Candidates
Democratic and Republican challengers across the country
have been running against incumbents who backed the financial-
rescue plan. The survey suggests that approach won't work, with
60 percent of respondents saying a candidate's position on the
bailout wouldn't affect their vote on Nov. 4.
Overall, most respondents -- 51 percent -- say they feel
threatened by the financial turmoil, while just 23 percent say
they don't. At the same time, 59 percent describe their own
personal finances as very or fairly secure, and 38 percent say
they are fairly or very shaky.
Asked how easily they could get access to $1,000 in cash
within a week for an emergency, almost two-thirds say it would be
easy, and about one-third say it would be difficult or
impossible. Among those in households with incomes of more than
$100,000, 88 percent say it would be easy; among those in
households making less than $40,000, 55 percent say it would be
difficult to get the cash.
There is no dispute among respondents about the state of the
economy, with nine in 10 saying it is doing poorly. This view is
common to all income, age and geographic groups in the poll of
1,543 adults nationwide, which has a margin of sampling error of
plus or minus 3 percentage points.
Yet, perhaps due to the government's rescue efforts, a
plurality of voters say they believe the economy will do better
six months from now. The response to that question, however,
varies according to income level. Most lower-income voters say
the economy will get worse or stay the same, and those in the
upper brackets say it will get better.
To contact the reporters on this story:
Edwin Chen in Washington at
echen32@bloomberg.netMatthew Benjamin in Washington at
mbenjamin2@bloomberg.net;
Last Updated: October 14, 2008 17:00 EDT