January 12, 2009,

Introduction
A broad inspection of public opinion data on the state of our economy reveals that Americans are worried about the future, less than optimistic about government's ability to face down the crisis, and ambivalent about Keynesian approaches to recovery.  Furthermore, as they imagine future possibilities, they seem to be relying upon traditional partisan and ideological understandings of the economy.  Thus, Democrats are more likely to support government spending as a stimulus strategy while Republicans are more likely to support reduced taxation.  However, the high incidence of "don't know" and contradictory or otherwise ambivalent responses suggests that Americans may be open to bold leadership.

This report consists of three parts.  The first summarizes the current state of public opinion regarding the economic crisis and its implications for Obama's proposed stimulus plan.  Here, we draw on surveys by CNN, Politico, Rasmussen, Gallup, and NBC/WSJ.  The second part of the report summarizes longitudinal data from the General Social Survey culled together by our research team.  These data reflect Americans' longstanding ambivalence regarding public spending and taxation.  The third offers some broad recommendations for approaching economic recovery given the current state of public opinion.
 
The Current Situation
Right now, Americans are feeling the pinch.  Fully eighty-nine percent of Americans report being dissatisfied with the current economic situation (63% are "very dissatisfied") (Politico).  Sixty-eight percent report that they are changing their habits to reduce their overall household spending (Gallup 12/14/2008).  Of those who have money in the stock market, 87% report losing money.  Almost half of them (47%) say they have "lost a lot of money in the stock market" in the past year (ibid.). According to Rasmussen polling released in early January 2009, half of Americans (50%) say their personal financial situation is getting worse while only 19% say their situation is improving.  As a result of the paired housing and financial crises, Americans are much more worried about their ability to "maintain the standard of living [they] enjoy" than they were prior to April 2008 when the housing crisis came to a head (Gallup).

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