Government Expansion

This week’s poll results examine how respondents view the federal government’s management of the economy and the financial system. The poll was not scientific and was driven by radio listeners of the syndicated Don Creech Radio Show and subscribers to its “Week in Review” email. Listen or subscribe at http://www.DonCreech.com.

 

A full ninety five percent of respondents believe the government should do less. This represents a much more conservative response than the NY Times/CBS poll where a 56% majority agrees with less involvement by the Feds.

 

The Wall Street Journal/NBC News poll found 69% of respondents are greatly concerned about government growth. That is less than the 95% of our respondents but is consistent with concerns that the government is extending its reach too far into our daily lives.

 

The Washington Post/ABC polls found only 56% of their respondents were concerned with the growing deficit. Again, our poll participants seem to be much more conservative here, too, in that, again, 95% are very concerned about the debt being built up for our children and grandchildren.

 

The NY Times/CBS poll found twenty percent who believe the government is “always or most of the time” right about the actions it takes. That is materially higher than the five percent who responded to our polling. Again, 95% take the stand that the government may be right some of the time or never.

 

Our poll respondents are a little more closely aligned with those of Rasmussen Reports where those in favor of more regulation were 74% and 47%, respectively. I would argue that regulation has unintended consequences. The issues that have been the focus of proposed regulation on the financial services industry are not targeted at the areas of recent problems. The housing crisis was caused by regulations mandating loans to lower credit quality borrowers. Regulators were watching to see that banks made enough low quality loans to meet Congressional mandates, not to see if the banks financial position was being damaged. The Madoff scandal lasted because FINRA regulators refused to investigate charges of fraud made by reputable people within the industry. There are plenty of regulations. There has been lax enforcement whenever large brand names are involved.