Do Americans think that government can become the engine of opportunity?

New research studies yield insights on Americans’ perceptions of government and its role in the economy, their life choices on matters such as education during the economic downturn, and their approval (or not) of the stimulus package and the direction of the economy.

Contents:
The Role of Government in Today's Economy ►
An American's Choices Today (education, personal finances)►
Ratings of the Stimulus Package and the Economy ►

The role of government in today's economy

Most Americans think that government must have an active role in confronting today's economic problem, although some question its efficacy. In a January 2010 survey (Allstate/National Journal Heartland, Jan 2010),  1 out of 3 say that they "would like to see government PLAY an ACTIVE ROLE in the economy to ensure it benefits people like them, but they are NOT SURE that they can trust government to do this effectively"; and another third of America (29%) think that "the government must play an active role in regulating the marketplace and ensuring that the economy benefits people" like them.

Opposed to that idea are about a third of respondents (35%), who say that "the government is the problem not the solution to our economic problems." Along these lines, another March 2009 survey (Gerstein/Agne at Demos/Topos Report) finds that 35% of Americans think that turning to big goverment to solve our economic problems will do more harm than good.  However, a majority (62%) say that "it's time for government to take a larger and stronger role in making the economy work for the average American."

 

According to the same multi-year study of quantitative and qualitative research by Demos/Topos,

this expectation for government "intervention" does not translate to understanding of what the government can do to help, and how policies shape the economy, the distribution of income and walfare (focus group findings). 

Many perceive the economy as "neutral" (= "a free market" that will "turn around") or shaped by the decisions of many individual actors (executives, consumers, small employers, unskilled workers and the like). Indicative of this attitude is that "most Americans tend to assume that new businesses and industries of the kind that drive economic growth are the product of creative and energetic individuals or companies—with little contribution from the goverment or policy.

That focus on the individual, not the system, becomes also apparent by Americans perception of "government help as last resort" (Demos/Topos). Americans tend to think that "the objective of government intervention in the economy must be to assist those who are failing in the existing system, like the poor or those who are unable to work."

An American's Choices in Today's Economy

Education
More Americans decided to go to school in 2009 but more also made their college choice, and prioritized their personal goals on the basis of economic considerations.

40% of adults ages 18 to 24, were enrolled in either a two- or four-year college in October 2008 (Pew Research Center, October '09). Most recent annual spike has taken place entirely at two-year colleges— community-college enrollment tends to rise as the economy worsens. More good news come from the enrollments to four-year institutions, which have remained steady during this recession.

Today's economic insecurity is determining the future of many "American Freshmen",  according to a large study of first-year college students in schools around the country (Higher Education Research Institute/CIRP).

Continuing the trend seen the year before it, in 2009 the cost of tuition (42%), and financial aid (45%) have become "very important" considerations in college choice for a record breaking number of freshmen (3 decades of polling students by CIPR). Along these lines, "getting a good job" also increased to record higs (57%).

Looking into the future, students' priority goals are also changing, possibly in reaction to this recession. BEING WELL OFF FINANCIALLY is the TOP PERSONAL GOAL, and at the highest level it's ever been (78%) since 1966. RAISING A FAMILY is now the second-most prevalent goal (75%). As expected, the importance of goals more in line with social agency slightly dropped—helping to promote racial understanding, or influencing social values—but EXPECTATIONS FOR CIVIC ENGAGEMENT HIT RECORD HIGH: 72% of incoming students say that they will do volunteer or community work during college (31%, very good chance; 41%, some chance). The survey also indicates that racial discrepancies in access to Advancement Placement courses in high school  persist mostly among American Indian, and somewhat among African American students, who are more likely to attend a high-school where no AP classes are offered, and less likely to more AP classes, when offered, than their White, Hispanic or Asian American counterparts.

The ARRA aka Stimulus Package Ratings, and Perceptions of the Economy

Polls unanimously agree that Americans found it MORE IMPORTANT TO STIMULATE RECOVERY AND CREATE JOBS OVER REDUCING THE DEFICIT, which though has risen in the public's agenda for 2010 (sources include CNN, Pew Research). At the same time, AMERICANS ARE SPLIT ON WHETHER THE GOVERNMENT IS DOING ENOUGH to stimulate the economy in a way that helps the low-income and middle class, and makes their lives better. Almost one out of two think that the American Recovery and Reinvestment Act (ARRA) no effect on their personal financial situation (CNN/Opinion Research Corporation Poll, Jan 2010). Only 8% and 9% think that the ARRA benefited middle-class and low-income individuals respectively (Allstate/National Journal Heartland Monitor Poll, Jan 2010). Although the ARRA's approval rating has been on a decline " from a 60% approval in  February of 2009, to 42% this January", 46% think that it "prevented conditions from becoming worse" (CNN).

- Eleni Delimpaltadaki