More Jobs Is Americans' Top Prescription for a Better Economy

GALLUP NEWS SERVICE

PRINCETON, NJ -- With consumer confidence generally stalled in the doldrums for six years, Gallup recently asked the American public what could be done to improve the nation's economy. A wide variety of prescriptions are offered, with the most common being to improve the job situation, mentioned by 27%, and cutting taxes, mentioned by 15%. Beyond these are numerous less common suggestions. Although quite varied in nature, these can be broadly classified into ideas that are economic or financial in nature, and those dealing with non-economic domestic policies or other issues.

Suggestions focusing on jobs are divided between those mentioning the need for more or better jobs, generally (15%), and those citing the need to curb outsourcing, specifically (13%).

Other specific suggestions worth noting include addressing the energy issue and fuel costs (4% each), increasing the minimum wage (7%), balancing the federal budget or controlling spending (6%), ending the war in Iraq (3%), and controlling illegal immigration (2%).

In your view, what is the most important thing that could be done to improve the U.S. economy?

Expanding Jobs

As noted, a total of 27% of all responses focus on the job climate -- either generally or in relation to outsourcing. Looking at both types of responses, improving the job market for U.S. workers is especially important to residents of the Midwest (a combined 37% mention either jobs or outsourcing) and is least important in the West (19%). Those in the South (25%) and East (30%) fall between these extremes in their apparent focus on employment.

There is no difference in mentions of jobs/outsourcing among people of different income levels; however, it is more likely to be mentioned by Democrats than by Republicans (32% vs. 22%, respectively).

Cutting Taxes

One might suspect that cutting taxes would be mostly a Republican concern. However, Gallup sees only minimal differences by party in those citing this as a remedy for the economy: 17% of Republicans and 15% of independents versus 12% of Democrats. Bigger differences are seen by household income, where 20% of those earning $75,000 or more mention taxes compared with only 9% of those earning less than $35,000 per year.

Also, men are nearly twice as likely as women to suggest cutting taxes, at 19% vs. 11%, respectively.

Minimum Wage and Iraq Show Partisan Differences

With responses spread across such a large number of suggestions, there are few major demographic differences to note in relation to most of the ideas mentioned. Two exceptions are the minimum wage and Iraq.

Ten percent of Democrats, compared with only 5% of Republicans, see raising the minimum wage as key to improving the nation's economy.

Seven percent of those with post-graduate education, compared with only 3% of those with some college education, think ending the Iraq war is the answer. This is about the same as the difference in the percentage of Democrats (4%) and Republicans (1%) mentioning Iraq.

Economic Backdrop Is Grim

According to Gallup's most recent monthly reading of consumer attitudes, from mid-December 2006, only 42% of Americans perceive current economic conditions as either "excellent" or "good," whereas 57% consider them "only fair" or "poor." Furthermore, barely a third of Americans (35%) believe economic conditions are improving, while the majority (54%) says they are getting worse.

According to Gallup's consumer index based on a combination of these two questions, only 29% of Americans can currently be classified as "positive" about the economy, while 45% are "negative." This is comparable to what Gallup has found for nearly all of the past six years, since the start of 2001. Attitudes were markedly more positive in 1999 and 2000.

To the extent Americans acquire their perceptions of the nation's economic climate from media reports, a slim majority express confidence in the accuracy of these. Fifty-one percent of Americans say the news media has been accurate in its portrayal of the nation's economy; 44% say it has provided an inaccurate account.

However, in another indication of Americans' generally downcast economic perceptions, those who say the media has been inaccurate are more likely to believe it has erred on the side of making the economy look better than it actually is (25% say this) rather than worse (18%).

Survey Methods

Results for this panel study are based on telephone interviews with 1,013 national adults, aged 18 and older, conducted Dec. 18-20, 2006. Respondents were randomly drawn from Gallup's nationally representative household panel, which was originally recruited through random selection methods. For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±3 percentage points. In addition to sampling error, question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of public opinion polls.

For results based on the sample of 455 adults who say the news media have been providing an inaccurate account of the economy, the maximum margin of sampling error is ±6 percentage points.

8. In your view, what is the most important thing that could be done to improve the U.S. economy? [OPEN-ENDED]

9. Generally speaking, do you think the news media have been providing an accurate or inaccurate account of the U.S. economy?

10. (Asked of those who say news media have been providing an inaccurate account of the economy) Do you think the news media's coverage makes the economy appear to be -- [ROTATED: better than it actually is, (or) worse than it actually is]?

BASED ON 455 ADULTS WHO SAY THE NEWS MEDIA HAVE BEEN PROVIDING AN INACCURATE ACCOUNT OF THE ECONOMY

COMBINED RESPONSES (Q.9-10): BASED ON FULL SAMPLE