Monday, August 17, 2009
A new poll on the economy and the stimulus program helps to explain why consumer confidence has been souring in recent months at the same time that equity markets have soaring, something that only a few investors have noticed, that is, up until last Friday.
This report in USA Today details the rather dim view now held by the public regarding President Obama's stimulus program and the economy in general.
Apparently the public at large has yet to hear the good news that a majority of economists recently polled by Bloomberg think that the recession is already over.
Isn't it time for an update to that poll that ranks profession's trustworthiness?
As I recall, the last time it was conducted, economists were sinking rapidly.
Some details about the poll:
A USA TODAY/Gallup Poll found 57% of adults say the stimulus package is having no impact on the economy or making it worse. Even more —60% — doubt that the stimulus plan will help the economy in the years ahead, and only 18% say it has done anything to help improve their personal situation.Maybe the government should accelerate the schedule for the next stimulus plan. From the looks of the fading American consumer, it may be be needed sooner than we think.
That skepticism underscores the challenge Obama faces in trying to convince the public that the stimulus has helped turn the economy around. It also could complicate the administration's plans to overhaul the nation's health care system.
"This is a wake-up call for the administration." says House Minority Whip Eric Cantor, R-Va. "People see the stimulus hasn't worked, and now you want to lay on over $1 trillion in a health care plan."
The administration declined to comment on the poll results.
The stimulus package contains $288 billion for tax cuts and $499 billion in new spending, much of it meant to pay for unemployment and other social services. The $1 billion "cash for clunkers" program was not part of the bill, although its $2 billion expansion comes from stimulus funds.