WASHINGTON, Oct. 14, 2011 /PRNewswire/ -- After a summer of
contentious battles over the federal debt ceiling, tumult in the
stock market, renewed concerns about the global economy, and
anxiety about a "double-dip" recession, Americans have become
skeptical about borrowing, even to finance growth -- and they think
Washington should be, too.
According to poll results announced today by The Allstate
Corporation (NYSE: ALL) and National Journal, nearly eight
in 10 Americans believe the federal debt and deficit have a
meaningful impact on their personal finances. Concerns about that
impact are fueling a strong preference for deficit reduction over
stimulus spending.
The 10th quarterly Allstate-National Journal Heartland
Monitor Poll explored Americans' experiences with and attitudes
toward debt, both on a personal level and in government spending.
The results reveal a population that views taking on personal debt
as an obstacle to – rather than an investment in – achieving the
American Dream. That view is mirrored when it comes to federal
debt, as 56% of respondents say reducing the debt and deficit needs
to take priority over additional government spending to stimulate
the economy.
Americans are increasingly skeptical about the federal
government's role in the economy, with 40% now saying government is
the problem, rather than the solution, when it comes to the
economy, up from 36% in May 2011.
Another 29% say they would like to see the government play an
active role in ensuring economic benefits, but are not sure they
can trust the government to do so effectively, while 27% support an
active government without those reservations. A full 71% of
respondents say they are not confident in Washington's ability to reduce the federal
budget deficit.
"The poll's message is that Washington and the business community need a
new approach to leadership and a renewed focus on issues that are
the building blocks of family security," said Joan Walker, Allstate executive vice
president. "The American people overwhelmingly expect leaders from
every field, community and business to compromise and solve
America's economic problems together, from making sound budget
decisions to creating more jobs."
According to the poll results, Americans are practicing what
they preach on a personal level. Nearly half of the poll's
respondents said the economic downturn had encouraged them to
reduce their debt, even if it meant cutting back on spending. Only
one in eight said they had borrowed more money in order to get by.
Just 39% agreed that "personal debt provides a path to achieving
the American Dream by making it possible for people to borrow
against their future earnings," while a solid 56% majority said
that "personal debt creates an obstacle to achieving the American
Dream by encouraging people to spend beyond their means."
"The consistent preference expressed in the poll for reducing
debt – both individually and collectively – suggests that, like the
Depression, the Great Recession could have a lasting impact on how
today's Americans borrow and spend throughout their lives," said
Ronald Brownstein, editorial
director of National Journal Group. "At the least, it's clear that
the fierce downturn has triggered a profound moralistic streak in
millions of Americans who equate debt with profligacy, and
profligacy with an erosion of the discipline required for economic
success, both individually and as a nation."
Key findings from the 10th Allstate-National Journal
Heartland Monitor Poll (PDF) include:
1) Americans' concerns about the economic impact of federal
debt are fueling a preference for deficit reduction over stimulus
spending.
- 79% of Americans believe that the federal government's budget
deficit and debt has a "great deal" of impact or "some" impact on
their personal finances.
- 56% say that deficit spending during an economic downturn is
the wrong approach because it increases long-term debt instead of
growing the economy by cutting spending and not raising taxes.
- 38% say that deficit spending during a downturn is critical
because the government has the unique ability to stimulate the
economy through public investment that lowers unemployment and
encourages spending.
- 55% of Democrats support spending to stimulate the economy,
while 74% of Republicans prefer cutting spending and not raising
taxes. Independents side mostly with Republicans, preferring
spending cuts over stimulus by a 59%-36% margin.
2) Americans are skeptical about the federal government's
role in the economy and its ability to reach an agreement on the
budget deficit.
- Americans hesitate to endorse an active role for the
government.
- 40% say that in the current economic environment, government is
not the solution to our economic problems – it is the problem.
- 29% say they'd like to see the government play an active role
in ensuring the economy benefits people like them, but they are not
sure they can trust the government to do so effectively.
- 27% believe that the government must play an active role in
regulating the marketplace and ensuring that the economy benefits
them.
- The Heartland Monitor series has tracked this question since
January 2010, across five surveys. By
a small margin, this "government is the problem" sentiment is the
highest tested thus far, indicating a steady and slightly
increasing mistrust of government's role in the economy.
- Americans express little confidence in Washington's ability to reach an agreement to
reduce the federal budget deficit.
- 71% say they are "not too confident" or "not confident at all"
in elected officials' ability to reach an agreement.
- Just 28% say they are "very" or "somewhat" confident.
3) Most Americans believe that personal debt creates an
unwanted obstacle that they are eager to pay off.
- A majority of Americans reject the idea that personal debt
provides a path to the American Dream.
- 56% believe that personal debt creates an obstacle to the
American Dream by encouraging people to spend beyond their means
and burdening them with years of interest payments.
- 39% believe it provides a path to the American Dream that
allows them to borrow against future earnings to pay for college, a
home, a car, or to start a business.
- The economic downturn has encouraged many Americans to take
steps to pay off debt or not take on any new debt.
- 47% say the downturn has encouraged them to pay off debt or not
take on new debt, even if that meant cutting back spending.
- Only 12% say the economy has required them to take on more debt
to meet their daily expenses.
4) Americans remain pessimistic about the direction of the
country, and President Obama's approval rating has eroded slightly
across the poll series. However, there is a remarkable consistency
to the trend data, indicating that most Americans have deeply
rooted opinions about the President's impact on the country and on
the economy.
- 70% of Americans believe that things in the country are
"seriously off on the wrong track," while only 20% believe the
country is "headed in the right direction."
- Americans' pessimism is at its highest point in the 2.5-year
history of the Heartland Monitor Poll.
- The President's approval rating is 44%, lower than it has been
in the nine previous polls.
- 41% of Americans say they would vote to re-elect President
Obama, while 51% say they would vote for someone else.
- 40% say they trust President Obama to develop solutions to the
country's economic problems, while 33% would trust Republicans in
Congress, and 20% say they would trust neither.
- 11% believe the country is significantly better off because of
the policies President Obama has pursued. 42% say the country is
not significantly better off, but beginning to move in the right
direction because of his policies. 41% say the country is
significantly worse off because of the president's policies,
including new lows for the president among white voters and
independents.
Notes to Editors
Survey Methodology
A nationally representative survey of American adults
conducted September 28 – October 2, 2011, among N=1,000 American adults
age 18+. Respondents were reached via landline and cell phone. The
survey has a margin of error of +/-3.1%.
About Allstate
The Allstate Corporation (NYSE: ALL) is the nation's largest
publicly held personal lines insurer known for its "You're In Good
Hands With Allstate®" slogan. Now celebrating its 80th anniversary
as an insurer, Allstate is reinventing protection and retirement to
help nearly 16 million households insure what they have today and
better prepare for tomorrow. Consumers access Allstate insurance
products (auto, home, life and retirement) and services through
Allstate agencies, independent agencies, and Allstate exclusive
financial representatives in the U.S. and Canada, as well as via www.allstate.com and
1-800 Allstate®. For an overview of the other Allstate-National
Journal Heartland Monitor Polls, visit
http://www.allstate.com/heartland-monitor. Additional information
is available at www.storiesfromtheheartland.com.
About National Journal Group
National Journal is Washington's premier source for 360-degree
insight on politics and policy. With up-to-the-minute breaking news
and analysis at NationalJournal.com, the essential intelligence of
National Journal Daily, the knowledge and depth of
National Journal magazine, and the comprehensive campaign
coverage of National Journal Hotline, National Journal
delivers everything you need to know to stay ahead of the curve in
Washington.
About the Strategic Communications Practice of FTI
Consulting
The Strategic Communications practice of FTI Consulting,
formerly known as FD, is one of the world's most highly regarded
communications consultancies. With more than 20 years of experience
advising management teams in critical situations, the Strategic
Communications practice supports clients in protecting and
enhancing their reputation in the capital markets, society and the
political environment. Services of the Strategic Communications
practice are financial communications, corporate communications and
public affairs, with specialty offerings that include strategy
consulting, research, creative engagement, crisis and issues
management, and change communications. The Strategic Communications
practice of FTI Consulting is an established market leader in
M&A communications and has been for many years.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm
dedicated to helping organizations protect and enhance enterprise
value in an increasingly complex legal, regulatory and economic
environment. With more than 3,700 employees located in 22
countries, FTI Consulting professionals work closely with clients
to anticipate, illuminate and overcome complex business challenges
in areas such as investigations, litigation, mergers and
acquisitions, regulatory issues, reputation management and
restructuring. The company generated $1.4
billion in revenues during fiscal year 2010. More
information can be found at www.fticonsulting.com.
SOURCE The Allstate Corporation