#1 Americans reluctant to fund bailout, poll finds
Posted: Tue Sep 23, 2008 5:54 pm
latimes
I imagine it would be even worse if the average taxpayer knew how much money we've already given these bloodsuckers.Most Americans don't believe the government has responsibility for bailing out financial firms with taxpayer money, a core part of the rescue plan Congress is considering to halt the near-meltdown of the nation's financial markets, a Times/Bloomberg poll has found.
Reluctance to use public money to rescue private firms runs across all parts of the population, the poll found: Democrats and Republicans, high-income and low-income families alike.
When asked whether the government should use taxpayer dollars to rescue ailing financial firms whose collapse could have adverse effects on the economy, 55% of the poll's respondents said they did not believe the government should be responsible for funding a bailout plan.However, when some of those who opposed a bailout were interviewed, several said they would reluctantly accept a bailout plan if Congress decided one was necessary.
"It sticks in my craw," said Camille Woyak, 82, a retired office worker in Appleton, Wis., who said she opposed a bailout. "There should be some other solution. But I think the taxpayers are going to have to cover it. I don't know any other way out."
"I lived through the Depression as a little girl," she added. "I don't want to go through that again."
Even voters who said they supported a government-funded bailout often said they weren't happy about the idea.
"Normally, I'd like to keep government out of the economy as much as we can," said Morris Vermeulen, 73, a retired housing inspector in Rogers, Ark. "But somebody's got to do something. We can't have a complete financial collapse."
Still, Vermeulen added, he hoped Congress finds a way to penalize the Wall Street financial houses for forcing taxpayers to come to their aid. "We should draw a little blood from them," he said cheerfully.
That mix of sentiments is one factor that has caused some Democrats and Republicans in Congress to balk at the Bush administration's bailout plan. Democrats have demanded new aid for distressed homeowners and limits on the pay of top executives whose firms get help. Some conservative Republicans have said the plan is an unwarranted use of taxpayer money to intervene in the private markets.
Other polls have found that voters want the government to do something to prevent a financial collapse, even though they don't like the idea of footing the bill. A Pew Research Center Poll released Tuesday, for example, found that 57% of respondents think the government is doing the right thing by intervening to stabilize the economy.
The contrast between the two polls probably reflects the different wording of their questions.
The Times/Bloomberg Poll asked respondents if they believed it was "the government's responsibility to bail out private companies with taxpayers' dollars." A majority said no.
The Pew Poll, by contrast, asked respondents if "investing billions to try and keep financial institutions and markets secure" was the right thing to do. A majority said yes.
In the Times/Bloomberg poll, a large majority, 62%, said they believed that insufficient government regulation was partly responsible for the financial crisis.
As to where the blame should go, Americans are divided: 32% blamed Wall Street financial institutions and 26% blamed the Bush administration. (Democrats tended to blame the administration; Republicans tended to blame Wall Street.)
Most Americans also oppose federal loans to help ailing automakers, another proposal Congress is considering, the poll found. Among all respondents, 64% said they opposed government loans to automotive firms, and only 25% were in favor.
The financial crisis has helped push public gloom to a record depth: 79% of adults said they thought the country was "on the wrong track," the highest ever recorded by the Times Poll.
Asked whether the country is "generally going in the right direction" or "on the wrong track," 79% said "wrong track" and only 13% said "right direction." That exceeded the previous record of 78% "wrong track" set in June.
When people in the survey were asked whether they felt the nation's economy was doing well or badly, 81% said the economy was doing badly, an increase from the 76% recorded in August -- and close to the record high of 82% recorded in June, when energy prices were soaring.
The nation's focus on the faltering economy appeared to bolster Barack Obama, the Democratic presidential nominee, who has been seen by most voters all year as a better economic leader than Republican John McCain.
Asked which candidate could do a better job of handling the financial crisis as president next year, 48% of registered voters named Obama and 35% named McCain.
The poll found a striking political divide between citizens who feel threatened by the current economic turmoil and those who don't.
When asked whether they felt less secure financially now than they did six months ago, Americans divided neatly in half: 50% said they felt less secure and 49% said they felt no different or more secure.
Of those who said they felt less secure, 59% favored Obama for president and only 30% favored McCain. But of those who did not feel less secure, 58% favored McCain and only 33% favored Obama.
The issue of regulating financial institutions has suddenly jumped to the top of the voters' priority list on economic issues, now equaling high energy prices as the top concern.
McCain has made his advocacy of increased offshore oil drilling a centerpiece of his campaign, winning support from voters concerned about gas and oil prices. Taxes, another major theme of the McCain campaign, are cited as a concern by fewer than one in 10 voters.
Ellen Walton, 83, of St. Louis, said the financial crisis has only confirmed her intention of voting for Obama. "I don't think [the bailout plan] is fair to the taxpayers," she said.
Woyak, the Wisconsin retiree who was torn about the bailout plan, said she's voting for McCain. "I'm voting for him, because I'm really glad he chose the lady for vice president. I admire him. . . . I'm not against the other one [Obama]. I just don't know him well enough."
And Vermeulen said he was still undecided. "I think I'm leaning toward the guy with the appeals to change," he said, referring to Obama. But he added: "He hasn't proven to me that he's more than just a good speechmaker."
The poll of 1,428 adults, including 1,287 registered voters, was conducted by telephone Friday through Monday. The margin of sampling error for all adults and for registered voters was plus or minus 3 points in each case. For smaller subgroups, the margin of error was higher.
