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Subscribe to RSSAmericans are growing increasingly worried about federal debt and government dysfunction, which economists say could be a sign they are afraid that squabbles about the fiscal cliff and the debt ceiling could derail the nation’s fragile economic recovery.
"I would guess that the real concern is that if Congress screws things up with the fiscal cliff … and then coming up with the debt ceiling, that it will hurt the economy," said Justin Wolfers, a professor of economics and public policy at the University of Michigan.
The economy in general still tops the list of the biggest problems facing America today, with 21 percent listing it as the biggest issue, according to a Gallup poll released this week.
But the poll conducted in early January found that nearly as many people – 20 percent – listed the federal deficit as the top problem facing the country. The percentage of people listing the deficit as the biggest U.S. problem has grown sharply in recent months, while the percentage of people naming the economy in general has fallen.
Over that time, Americans also have grown much more dissatisfied with politicians and the government. About 18 percent listed politicians and the government as the top problem facing the U.S. in the January poll, up from 9 percent in October.
Meanwhile, 16 percent said unemployment was the top problem, down from 26 percent in October. That marks the first time since 2009 that unemployment has not been in the No. 1 or No. 2 spot.
Economists say they don’t necessarily think Americans are less concerned about the economy or the tight job market. Rather, they say, Americans may be growing more concerned that political infighting and the growing federal deficit could hurt the nation’s already fragile economic recovery.
“We’re maybe actually just as concerned about unemployment as we were six months ago, but we’re much more concerned about the deficit,” said Erik Snowberg, a political economist at the California Institute of Technology.
Snowberg and others say Americans likely want the government to fix the nation’s economic woes, or at least not exacerbate them.
“It’s one thing if (politicians) can solve the people’s problems. It’s another thing if they are doing the opposite – if they’re just arguing and not solving problems and making things worse,” said Chris Christopher, senior principal economist with IHS Global Insight.
Christopher noted that consumer confidence fell sharply in November and December, as the fight over the fiscal cliff started to heat up. Wolfers, at the University of Michigan, documented a similar effect when the debt ceiling fight came up for the first time in the summer of 2011.
Economists say it’s not clear how much of an effect consumer confidence has on things like spending and hiring. But it is clear that consumer confidence is impacted by political strife, and there’s been plenty of that in recent months.
"We're going from the fiscal cliff into higher (taxes) to this bickering over the federal debt ceiling,” Christopher said.
The political strife comes as the nation’s economy appears to be steadily, if slowly, improving. The job market is adding some new jobs each month, and the housing market appears to at least be stabilizing.
Still, economic growth is not yet strong enough that something couldn’t throw it off course, Snowberg and others say. President Barack Obama warned Monday that an extended fight over the debt ceiling could weaken the economy or even push the nation back into recession.
The United States is set to hit the limit on how much it can borrow some time in the next month or so, and Congress must approve an increase in that limit so the government can pay its bills. But Republicans would like to use the debt ceiling limit vote as an opportunity to push cuts in government spending, which they say are necessary for the nation’s long-term fiscal health.
Related story: Fitch warns US credit rating at risk over debt ceiling squabble
Democrats argue that it doesn’t make sense to use the debt limit as the basis for that discussion, since the limit itself does not authorize the government to spend more money.
Wolfers, who does work for Gallup but was not involved in this survey, said the idea that the U.S. could stop paying its bills because of political fighting is astounding to many people who are watching the situation unfold in other countries and in the financial sector.
“It’s a fragile recovery and we certainly don’t need politicians in Washington derailing it,” Wolfers said.
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If you voted debt, you've fallen for the propaganda. The housing market collapse took trillions out of the middle class econonmy resulting in the economic collapse. That happend for a lot of reaons, many of which are not fixed as republicans have effecitvely shifted the topic to unrelated issues. When that money dissappeared, unemployment rose due to weak sales. As we recover, it is directly related to housing which drives wealth and jobs.
It is what the debt represents, not the debt itself.
Those trillions have been taken from the people to sustain an morbidly oversized government and financial system that is based on various debt instruments.
Capitalism is rooted in the ability of better ideas propagating and bad ideas dumped in the dust bin of history. Todays system is all about getting subsidies, bailouts and special favors from elected officials via debt placed on the public.
The host, that is the American public, is being bled to sustain the re-election chances of DC.
Housing is a consumption item not an investment. Housing does not add productivity to the economy.
The so called 'free trade' is the biggest reason for job losses. We import way too much stuff from China. Government has to enforce a balanced trade with China - buy from us as much as we buy from you or pay 30% tariff on the imbalance.
If you voted Political squabbles then you've fallen for Obama's agenda of a divided Government. Obama will Pit you against the Republican Party while your busy with that, Obama will change the face of Government does not matter if it's gun control to the debt limit. He has made most of you dependent on Government and everyday we are loosing our rights as Americans. 75% of you think is its Political squabbles which means that Obama's agenda is working and it tells us that we have a greater number of uninformed voters supporting Obama's agenda that is sad thing in this country.
Can't blame me. I voted against all incubments.
Why is everyone upset?
Most of our public servants are millionaires, they get free medical, have pensions and go on trips around the world. What's the problem?
We need to do away with the Federal Reserve and take the power away from the banking cartels. That is the reason we broke from England - to get away from the central banking system, yet here we are again. We need to spend more of our tax dollars repairing our nation's infrastructure. 3 months of everyone's income tax goes to pay the interest on the loan the govt. owes the Federal Reserve. Doesn't even touch the principle.
Hello folks, until we change Federal Reserve Notes to United States Notes our debt isn't going anywhere but up. Debt is a requirement of the Fractional Reserve Banking System.
I think we need currency reform and spending reform with many more products that say made in the good ole US of A.
Obama has done nothing to pit me against the Republican Party. Bush took me from a true Independent to an Independent who would take a great deal of convincing to vote Republican, before Obama was more than a small blip on my radar.
McCain put a nail—make that a bolt—through the Republican coffin by choosing Palin for VP and then continuing to insist he was "proud of her" even after she had become a global laughing stock.
And the Taliban-inspired animals who believe a woman should carry a baby to term regardless of the circumstances; that are so ignorant they believe if a woman gets pregnant she wasn't really raped and will bald-face lie that a DOCTOR told them so, made me unwilling to vote Republican under ANY circumstances whatsoever.
None of that had anything to do with Obama. The Republican Party can thank itself for the fact I will NEVER vote Republican again. Your attempt to blame Obama for it is typical of your party.
The now-defunct Middle Class is responsible. They busted the unions, giving their employers the right to fire them without cause, to pay them paltry wages without benefits, and to hire a bunch of kids to do the work that adults needed to earn a living and to pay their bills. They lived beyond their means, taking on massive debts on mortgages and credit lines and blowing every penny in their pockets on gourmet coffees and martinis on their lunch hours. Now they have lost their jobs because the Chinese can do a better job for a lower price, and so they have defaulted on their debts, demanded unemployment benefits, food stamps, and other freebies while they lay on their miserable asses and bawl about how those who are more successful have somehow wronged them. Meanwhile, these are the same people who cheered when Bush made it viritually impossible for them to go bankrupt. LOL
No sympathy here. I can actually afford my white chocolate latte.
You're young, if that's your picture. Maybe you don't have kids yet, and so don't care if children die of lead poisoning after playing with toys Made In China.
However, although you make some good points, you might want to rethink that one. I don't think Newsvine will let me say the N-word, so I'll just mention slave-labor instead. The total lack of moral fiber that will allow American corporations to out-source to countries like China and India who sell their people on the global market is a characteristic of the 1% you so obviously want to climb in bed with.
"Raise the debt ceiling" really means "I'll gladly pay you Tuesday for a hamburger today."
Tuesday has come and gone and come and gone. Where's my money?
---
We're headed for an implosion as a nation, and today's ruling on how the government will violate our Second Amendment rights as a knee-jerk PR stunt in reaction to a tragity that ultimately no laws could have prevented or will prevent from happening again, may very well be the catalyst that kicks off the Second Civil War - which is coming, it's just a matter of when.
A civil war? In your dreams. A self-proclaimed militia full of chubby, untrained rednecks with a donut in one hand and a shotgun in the other would be eaten alive by the military.
They would indeed - but since that only represents the smallest portion of folks - consider organizations like Halo Corp (formerly Blackwater) - an elite mercenary force, many of whom are former military, and most even more disciplined and trained than many special forces teams. There exists a truly astronomical number of organizations of civilian gunmen who are anything but self-proclaimed chubby rednecks.
Myself, I am former military, trained as a sniper, and to this day I still practice and improve on that training, constantly pushing myself to achieve. Why? Certainly not because I would ever WANT to put those skills to use, but rather because I enjoy the challenge.
And there are plenty of others as well - I'm sure when the 2nd Civil War comes, there will be plenty of police, S.W.A.T. members, and even military and National Guardsmen "on The Peoples' side".
So the only dreams here are yours.
Government taking firearms = Civil War II
Therefore the government won't try it.
You're mistaken as to who the enemy is. The wealthy own the political system. They have the republicans doing their bidding. The wealthy continue to gain more wealth. The top 1% owns 42% percent of the nation's wealth. They've paid for the legislation that stacks the deck in their favor.
fore hey, are you saying that the democrats don't do the bidding of the wealthy? Wow!!! A sucker born every minute!
gday,
Not at all. Just that at this point in time the republicans are worse by a long shot. That much is obvious.
fore hey,
I suggest looking at the actions of both parties - not just listening to their rhetoric. The Democrats had about 2 months with a filibuster-proof senate, the house and presidency - yet they failed to tax the "anti-rich/corporation" measures they say are needed.
If they had really wanted to end the oil company subsidies, increase inheritance taxes, increase tax rates on the 1%, etc. - they could have done it during those 2 months and there would have been nothing the Republicans could have done.
Ron,
Perhaps in those first months they didn't expect such overt obstructionism. I suggest you open your eyes to what is happening and not listen to anyones rhetoric.
The truth is DC wants a second recession. They want to use this fiscal cliff (B.S.) to be the fall guy for it. They (DC) needs a crisis. Let's face it, they use fear, and greed tactics to get the knee jerk reaction out of the public. I'm not buying it, but I am PAYING for it.
The debt and deficits are the problem, not the arguments over it.
Yep...people just need to look to Southern Europe to see where we're heading. (or maybe Japan - where they have to spend around 20 to 25% of tax revenues just to make interest payments on their debt)
The single greatest threat to our Economy, to our Nation, is our Government, the politicians that make it up and the corporations that sponsor them.
And they know we're beginning to see clearly through the smoke and mirrors, and they know that things as they are can end only one way - as stated in the Declaration of Independence: "That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government"
And the only way we will achieve alteration or abolishment of the Destructive Institution that our government has become will be by force - hence the rush to disarm the populace, the intrusions into our privacy (Patriot Act), and the continual erosion of our Constitutional Rights.
I call upon all those in Washington - Uphold the oaths you took to "Defend the Constitution from all enemies, both foreign and domestic" and do the only honorable thing: seppuku
NOTHING dysfunctional about congress or DC, it is working the way it was designed, when you have 50%+(voters and non voters) who oppose Obamapollicies, you get gridlock, if you don't have the votes you don't get what you want. Obama is the biggest problem, our new and improved pontificating potentate! the new KING of America. The Supreme judges seem not to know what the constitution is all about either. Communist progressives and deadbeat followers are the PROBLEM, the non producers, the freeloaders. When the demonrats in the Senate will not vote for Obama policies you know there is a problem! They do not HAVE a MAJORITY based on their polices! Gun control will kick out about half of the demonrats in 2014.
Americans are growing increasingly worried about government dysfunction, which could be a sign they are afraid that squabbles about the debt ceiling will derail the recovery. RECOVERY????????? WHAT RECOVERY?????? LOL.
One huge sign of our dysfunctional government is the continued billions
of dollars our Congress continues to send to Israel, despite the fact that the
Israeli economy is one of the strongest in the world.
See figures: Israel's
economy is thriving in a global economic meltdown. The Jewish state's 2009-12
economic growth of 14.7 percent leads all the advanced countries of the world,
followed by Australia with 10.7; Canada 4.8; United States 3.2; Germany 2.7;
France 0.3; European Union minus 1.5 percent.
Last year alone,
Congress voted unanimously to provide Israel with 10 billion dollars in
guaranteed loans, with America picking up the fees and interest charges. The
bill was written and sponsored by Jewish Congressmen, including Eric Cantor. It
was passed with a voice vote in the Senate, so no one could see how they voted
and not mentioned in the main stream media. In addition, America paid 1 billion
dollars to Israel towards their “Iron Dome” project and the usual 3 billion in
aid, which America has been giving Israel for decades. Of course we have to pay the interest, as well as the principle back to
China.
The 3 billion dollars, we give each year, amounts to over $500.00, for
each man, woman and child in Israel. Nice gift.
In America, the
politicians want to slash Medicare and social security for our retired workers,
but there is NEVER a mention by even one person in Congress to slash aid to
Israel, the country with the strongest economy and most powerful military in
the ME, by far.
America - we have
a problem!
RalphH,
That is the opposite of a dysfunctional government, it is a case of government working together for a great cause.
Jerry - Do you call supporting parasites "a great cause"? I call it the result of bribery and most likely some extortion. The leaders of Israel and the Zionists who support them are evil people without consciense.
Stop all aid to Israel.
I do call it a great cause.
I do not see you calling for an end of aid to Egypt, is that what you call a great cause?
Aid to Egypt is only given so they will be nice to Israel. End aid to Egypt.
.
We have reached a point where both political parties seem willing to wreck the nation, its government, and its economy in order to "save" it from the opposition. Frankly, the vast, vast majority of Americans are quite satisfied with their nation but the malcontents with the louder voices portray it as on the cusp of revolution. Perhaps we should have one ~ just to silence the seditionists and anarchists. If majority truly rules, we should be rid of the chronic complainers is less than a month. It could be interesting to see if the American people are willing to fight for the nation they have or if they are willing to jettison it for the fantasy land the proposed by current day obstructionists.
If you don't yet get that Everything is a lie then you are pretty dumb. As I don't watch commercials or listen to much political fraud, I still can hear the outright lies in every breath. If you are also sick of hearing lies, refuse to listen to most of it. Do your own research but even then, you will have to wade through the lies. Pitiful world in which we now live.
The real problem is not listed. It is the American public. They want and expect a continuous flow of government programs and benefits that they don't want to pay for themselves. They want someone else to pick up the tab.
The public is part of the problem. Taxes are our single biggest expense and we would like to see something for all that money government takes.
The debt is 100% the responsibility of the Republicans. They have, for over three decades, intentionally run up the debt as part of their "starve the beast" philosophy. That tactic has completely failed in its objective to reduce the size of government (in fact GW Bush massively increased the size of the federal government, even creating a new cabinet level bureaucracy) however they have succeeded in running up a huge debt.
Democrats had control of the House of Representatives from 1949-1995 and again from 2007-2010. Obama has increased the national debt during his first 4 years in office by $700 billion more than the debt increased during the 8 years Bush2 was in office. What a hoot!
If you look at the records since President Carter was in office, the number of agencies and employees of the Federal government have increased under Republican presidents, and decreased under Democratic presidents.
Unfortunately, Republican Presidents spend money like drunken sailors. To quote a certain VP (Cheney) "deficits don't matter."
I agree that there are cuts needed in our budget, but I would suggest taking care of our own country first. Bring ALL our troops home, cut the defense budget by 50 %, sell ALL the overseas bases we own, and put new bases along the borders and at least one in each state. Defense money should be flowing to support our local economies, not overseas.
Peter - The real hoot is Bush didn't include the borrowed costs of his 2 wars in the debt figures, They were deferred for Obama. Here is a breakdown of how the debt accrued.
$14.7 Trillion National Debt break down- $1.9 Trillion from Ronald Reagan
(Republican), $1.5 Trillion from George H.W. Bush (Republican), $6.1 Trillion
from George W. Bush = 10.3 Trillion of the Country's National Debt or 70% of
the National Debt of This Country was Handed to President Obama by Republican Presidents. $1.4 Trillion from Bill Clinton (Democrat) which means that President Obama walked into Office with the Gift of $11.7 Trillion in Debt just from the last 4 US Presidents and $12.2 Trillion in National Debt over all. The Interest on that Debt if Obama doesn't spend a dime in 3 years is another $1.5 Trillion in 3 years which takes us to $13.7 Trillion of the $14.7 Trillion.
Obama has accounted for $1 Trillion of the Debt with $700 Billion of it to pour
Cold Water of the towering Inferno George W. Bush Handed him which was a
Country that was Bleeding 700,000 jobs per month! All of you Fools who are
blaming Obama for where the Country is are Idiots! Keep drinking the Spiked Tea
Bags, that's what dumb folks do.
"Americans are growing increasingly worried about federal debt and government dysfunction"
No problem the people in government just party on.
If Americans were really worried, they would have not continued the DC status quo during the elections 3 months ago! Are people's memory really that short?
If the districts hadn't been gerrymandered by republicans, we would have a democratic house too.
http://www.thenation.com/blog/171135/paul-ryan-and-terrible-horrible-no-good-very-bad-election-day#
The small majority elected Obama. He has proven to be the most divisive President in US history. He blames the other guy and offers no credible alternatives. Obama may just be the first US President ousted from office by mass protests! He cannot lead and has turned into a Dictator (the Chicago Way) and that is failing.
1) Obama is the first president since Eisenhower to be elected with at least 51% of the voters in BOTH terms.
2) The divisiveness is not from the president, it is from the Republicans who famously stated immediately after his inauguration that their number one legislative priority was to make him a one term president.
3) Our Constitutional form of government with its checks and balances makes it impossible for the president to be a "dictator".
The Repug-nicans has run this economy up so bad now they want to cut everything. We have not heard them wanting to cut their own pork? All of the politicians have run this country into the ground.
Hmm... really? Democrats have held the majority in DC for the past 4+ years and have nothing useful so far except for waging class wars and making promises they can't keep!
Oh jimbozo, i have news for you. The Republicans have had control of the House for the past 2 years. During the first 6 years of the Bush administration, they held a super majority in the Senate, House and a majority in the Judiciary.
During that period, they did not solve immigration, welfare problems or medical cost issues. They did start 2 wars and destroyed the US economy, while enriching the already rich. They passed a prescription drug bill that was the biggest givaway in decades, causing medical costs to go through the roof. They added the Dept of Homeland Security, which put more thousands on the government payrole.
Worried about derailing recovery? Which recovery? Papering over with printed money is not recovery!
Where is the economy stimulation through lower taxes and regulation? Where is the incentive to bring the jobs and business to US?
All I hear from the ruling party in more regulations, more taxes, and more handouts. That's not recovery!
jim, I think they must mean the recovery in the expansion of government. The private sector is still in recession.
The private sector of the economy has been out of recession for 3 1/2 years with GDP increasing about 2% each year. That may be weak economic growth for a recovery from a deep recession, but it is still economic growth.
Hey Pete go tell that to all the people who had businesses that are now closed and all the underemployed and unemployed. The only winners are people in government.
GDP is 2% only because of all of the papering over. If you account for inflation, the GDP is negative! We're not producing anything except sovereign debt.
Everything from housing market to stock market is propped up be low interest rates from the Fed. This is not recovery.
Let the interest rates free float and see what kind of GDP we get.
We're still in recession, and it's not getting any better.
Excessive spending and political infighting....it is about time both parties started working with each other. President Obama needs to lead this effort by truely being willing to negotiate instead of delivering ultimatums. Spending cuts are just common sense - when you have more going out than coming in something has to go - a good start/example would be canceling expensive vacations and designer clothes that tax dollars are paying for. Cancell any inaugural events that are costing tax payer money - he is already in office so they are unneccesary. Institute a Federal hiring freeze and fill essential positions only. Learn the difference between actual need and want - then pay for only what is needed. Stop entitlements to illegal aliens and reinstate the reporting requirements. Take away the congressional golden parachute and special perks like thier healthcare plan and make them use the same plan they have stuck the rest of us with. I also wouldn't be opposed to cutting congressional and presidential pay until a solution is reached to give them some incentive.
The only inaugural events the taxpayer pays for is the swearing in and luncheon. The parade, and the balls, are paid for by donations from the President's supporters.
There are only two balls this time -- last time there were seven.
How about gutting the government by getting rid of all the Obama's Czars and their agencies, cutting the military to the point where we can't afford to fight useless wars, simplifying the Tax code to bring in more revenue and lower the tax rates, and gut the IRS... then we'll see some real change!
I would appreciate REASONABLE discussions by members of Congress. But, so far....
As of now, I'm guessing that the popularity of congress is even below the popularity of Ebola virus. That's pretty sad.
All of the above. Too much self-interest. Government intervention. The media. Half-truths. Free-loaders. The dumbing down of America is very scary. Entertainment industry. Sensationalizing celebrities . . .who cares?!?!? Not getting to the root of a problem. . .just placing blame elsewhere. Gee, and I am considered a "half-glass full" person. Go figure.