Women’s Voices Illinois Blog

Citizens to Government: Get out of my life, but fix it first

October 14th, 2008

The unprecedented ($700 billion+) government bailout of the U.S. financial markets has forced many American voters to ask themselves a tough question: What really is role of government in the American economy? In response, the American people have been sending their government some mixed messages.

Nearly 70 percent of Americans opposed the bailout on the grounds that it would have no effect on the crisis and/or would lead to more expensive bailouts. Doesn’t this send a strong message to the federal government about what their role should be in a financial crisis?

Not really. In a survey conducted by the Kauffman Foundation on the days leading up to the bailout, 59 percent of registered, likely voters supported increased government regulation in the financial markets.

But only 14 percent of respondents had confidence in Congress to guide the economy, compared with 56 percent who would rather have a successful small business owner guide the economy.

To summarize, Americans want financial markets regulated – but not bailed out – by a group of individuals they admittedly do not have confidence in to guide the economy.

If that’s not confusing enough, 49.8 percent of American voters post-bailout are supporting Barack Obama (compared with 43 percent for McCain) – the candidate who is, admittedly, advocating for government-funded solutions to health care, energy, and economic concerns.

Even before American taxpayers footed the bill for a 700 billion dollar bailout, Barack Obama proposed funding those added expenses by raising taxes on families and small businesses making more than $250,000 a year (not just the wealthy individuals whose salaries exceeded that).

Fifty percent of Kauffman survey respondents thought that the biggest threat to their personal economic security was a tax increase. Seventy percent think the health of the American economy depends on the success of entrepreneurs.

It seems like Americans want to have it both ways, but I want to know what you think: Can we have a more heavily regulated financial market, if we don’t trust government to guide the economy? How does government “assist” without “bailing out”? Can candidates propose increases in spending at a time like this without doing further damage to the economy? 

Entry Filed under: Economy