A Bloomberg/Los Angeles Times survey reported Friday that Americans are looking to Democrats rather than Bush to avoid an expected recession this year. More than two thirds of those polled felt that the economy was doing badly, up from 56% in December.
At the same time however, most agree that tax cuts which are included in the stimulus plan, is the most effective way to boost the economy. Extra spending money is what most Americans want, probably because rising oil prices have adversely affected all household budgets.
Almost 80% of those polled said a recession is likely this year, and only 16% said a downturn is unlikely. This perspective of the economy was shared by people irrespective of income group or political affiliations.
Where the Democrats really outscore Bush is in the number of people who felt that they can handle the economy better. 51% felt they will do a better job as against 29% for Bush. But these figures do not tell the whole story. It seems Bush's followers are still behind him. Two thirds of Republicans felt that Bush can handle the economy. For the Democrats the corresponding figure is 83%. It is the Independents who are overwhelmingly in favor of Democrats on this issue, voting 51% to 25% in their favor.
Although the outlook for the economy is clouded, two thirds of Americans rate their personal finances as very or fairly secure, and a majority expect to spend the same amount of money on purchases six months from now as today. This is reassuring news for economists who had forecast that falling home values and consumer confidence will slow personal spending, which accounts for almost 72% of US economic activity.The highest number of people, almost 20% held Bush responsible for the present situation, more than the 15% who blamed the mortgage lenders for it.
Bush's State of the Union address is on January 28th. People are already sure where the nation is headed. 63% said that the country is on the wrong track. What really surprised pollsters was that most Americans feel that tax cuts are are the best method for stimulating the economy, rather than an economic program focussed on health and education spending.