Wednesday, September 28, 2011

The people are VERY upset, and that is good

In case you haven't seen it, I post this chart from Gallup. The country as a whole has never been so dissatisfied with the way the country is being governed. This chart gets my vote for the most important of the year.

Key findings:

• 82% of Americans disapprove of the way Congress is handling its job.
• 69% say they have little or no confidence in the legislative branch of government, an all-time high and up from 63% in 2010.
• 57% have little or no confidence in the federal government to solve domestic problems, exceeding the previous high of 53% recorded in 2010 and well exceeding the 43% who have little or no confidence in the government to solve international problems.
• 53% have little or no confidence in the men and women who seek or hold elected office.
• Americans believe, on average, that the federal government wastes 51 cents of every tax dollar, similar to a year ago, but up significantly from 46 cents a decade ago and from an average 43 cents three decades ago.
• 49% of Americans believe the federal government has become so large and powerful that it poses an immediate threat to the rights and freedoms of ordinary citizens. In 2003, less than a third (30%) believed this.

All of this has major implications for next year's elections, since the election will essentially be a referendum on fiscal policy. Do you believe taxes should rise to pay for current and projected levels of spending, or do you believe that spending should be brought into line with the existing tax rate structure? Do you believe that more government spending and regulation of the economy will improve the outlook, or do you believe that less spending and regulation will?

Judging by the findings above, I have to believe that the elections will be the catalyst for a significant change in fiscal policy, in the direction of spending restraint and at the very least an avoidance of higher tax rates. This shift in the mood of the electorate has been underway for some time now, beginning with the emergence of the Tea Party, and it found its greatest expression in last November's elections. As a supply-sider, I have welcomed this shift from the very beginning, since I strongly believe it will prove to be very positive for the long-term financial and economic outlook.

In short, things are so bad right now that they are almost surely going to get better.

9 comments: said...

Vote for Ron Paul. He will bring more freedom.

Benjamin Cole said...

I like Ron Paul, but I notice even Scott Grannis gets weak in the knees when we talk about abolishing the FDIC.

How about Scott--wipe out the FDIC?

Aside from his ranting about the Federal Reserve, I would vote for Ron Paul in a heartbeat.

Stone Glasgow said...

Why do you think FDIC is a good idea Scott?

Ron Paul has moved on to demanding a free market in currency production, and he's right about that. He's the only honest politician I've ever seen, and that's why he won't ever win. Sad.

Scott Grannis said...

I don't think I've ever expressed an opinion about the FDIC, but it fits into the category of things the government should refrain from doing. The FDIC creates moral hazard, as any government loan guarantees do.

Cabodog said...

I'm all for change. Real change. Just over thirteen months to go.

Obama is nothing better than a great campaign. Incredible marketing machine, but nothing else. I often think he must go to bed each night saying to himself "what the hell did I get myself into??" But, his ego is much too large to allow that.

We need someone with experience, someone who's run a large corporation.

Cabodog said...

Good stuff Scott. Thanks for posting.

As painful as Obama's current actions are to witness in the short term, I gives me solace to witness his alienation of many that supported him (for whatever misguided reason) in the last election.

Benjamin Cole said...

• 82% of Americans disapprove of the way Congress is handling its job.

Not sure what this means. Congress is half-run by Tea Party lunatics, and half by liberal lulus.

Anonymous said...

Rick Perry is poised to exploit this situation. Check out his latest video which is the first of the campaign season to go viral. I don't know the guy but the video is very effective.

brodero said...

Last year 37% had a favorable opinion for Tea Party and 37% had an unfavorable
28% have a favorable opinion of the
Tea Party and 53% have an unfavorable opinion of the Tea Party....sounds like there is a need for a compromise position...
beware overplaying your hand tea