Independent Poll Shows Growing Concern Over Government Expansion and Rising Debt

Ahead of the U.S. Chamber’s Jobs Summit, Data Exposes Concerns Among Small Businesses and Voters with Lack of Progress on Jobs

WASHINGTON, D.C.—In advance of Wednesday’s Jobs for America: Summit 2010, the U.S. Chamber of Commerce today released two surveys showing that small business owners and voters are deeply concerned about the impact government expansion and debt are having on job creation. The polling reflects an across-the-board concern about Washington’s policy agenda and its impact on the economy. The polls were conducted July 6-8 by the Lombardo Consulting Group.

“These polls reveal that small business owners and Americans in general are deeply concerned about the state of the U.S. job market and prospects for recovery, and that the avalanche of new regulations on business are resulting in a weaker economy” said Stan Anderson, executive director of the U.S. Chamber’s Campaign for Free Enterprise. “All the government spending and debt accumulated during the past year and a half have not produced results and Americans are increasingly convinced that this government’s actions have made the situation worse.”

Of the 300 small business owners who completed an online survey, nearly six in ten (57%) feel that this administration does not have a clear plan for creating jobs. Nearly seven in ten (68%) agree that this administration’s new rules and regulations are expanding the size of government “far too much, resulting in a weaker U.S. economy and fewer jobs.” In addition, eight in ten (80%) said that they are either “very” or “somewhat concerned” about the growth in the size and power of the U.S. federal government over the past few years. A plurality (39%) of small business owners think that the situation for people looking for jobs in the U.S. will “get worse” over the next six months.

A telephone poll of 800 U.S. registered voters highlighted that more than six in ten (62%) voters feel that this administration does not have a clear plan for creating jobs. Most voters (60%) agree that this administration’s new rules and regulations are expanding the size of government “far too much, resulting in a weaker U.S. economy and fewer jobs.” In addition, nearly eight in ten (78%) say that they are either “very” or “somewhat concerned” about the growth in the size and power of the U.S. federal government over the past few years.

For the full survey of small business owners visit
https://www.uschamber.com/assets/uscc/1007natsmsurvey.pdf

For the full survey of voters visit
https://www.uschamber.com/assets/uscc/1007fesurvey.pdf

Other highlights from the polls include:

Size of Government

Small business owners are extremely concerned about the current size—and role of—the U.S. government.

• Fully eight in ten (80%) small business owners say that they are either “very” or “somewhat concerned” about the growth in the size and power of the U.S. federal government over the past few years (nearly half—45%—are “very concerned” about it).

Voters are extremely concerned about the current size—and role of—the U.S. government.

• Nearly eight in ten (78%) voters say that they are either “very” or “somewhat concerned” about the growth in the size and power of the U.S. federal government over the past few years.
• In addition, approximately half (51%) of all voters agree that the government is “doing too many things better left to businesses and individuals.”

Job Creation

Small business owners are deeply concerned about the state of the U.S. job market and its prospects for recovery.

• A plurality (39%) of small business owners think that the situation for people looking for jobs in the U.S. will “get worse” over the next six months, while 32% think the situation will “stay about the same.” Slightly more than one-quarter (27%) of small business owners think that the job situation will “get better” over the next six months.

Perhaps not surprisingly, small business owners feel that small businesses will be primarily responsible for creating the most jobs over the next few years.

• Nearly half (49%) of all small business owners identified small businesses as the primary engine of U.S. job growth, followed by big businesses (18%), entrepreneurs (18%) and the federal government (nine percent).

Small business owners identify three principal threats to job creation over the next two years: higher taxes, chronically high budget deficits and expansion of the government’s role in the economy.

• Small business owners are equally divided with respect to identifying the greatest threats to job creation: 25% think that “higher taxes” will be the primary threat to job creation, 23% think that “chronically high budget deficits” will be the principal issue over the next two years and 22% feel that “expansion of the government’s role in the economy” will be the primary threat to job creation.

Small business owners are also concerned about the national debt and its impact on job creation.

• More than half (55%) of all small business owners are “very concerned” that chronically high budget deficits will have a negative impact on job creation. An additional 35% are “somewhat concerned” about the issue.

Most small business owners do not think that the recent health care reform legislation will result in the creation of more jobs in the U.S.

• Approximately one-third (32%) of small business owners think that the health care reform legislation will result in more jobs in the U.S.; fully 57% feel that the legislation will not result in more jobs.”
• Half of the small business owners were asked the question in a different way, and the legislation was described as having been “passed in March by this administration and Congressional Democrats…” When asked the question using this language, there was no change in the outcome: 33% of small business owners felt that the legislation would result in more jobs in the U.S., and 53% said that the legislation would not result in more jobs when the question was asked in this manner.

Nearly half (46%) of small business owners feel that labor unions have a negative impact on job creation in the U.S.

• While 30% of small business owners feel that labor unions have a positive impact on job creation in the U.S., a plurality (46%) feel that labor unions have a negative impact (and 17% of small business owners feel that way “strongly”).

Voters remain deeply concerned about the state of the U.S. job market and its prospects for recovery.

• A plurality of voters (45%) think that the situation for people looking for jobs in the U.S. will “stay about the same” over the next six months, while 32% think the situation will “get worse.” Just one in five voters (20%) thinks that the job situation will “get better” over the next six months.

As in the March survey, voters feel that small businesses will be responsible for creating the most jobs over the next few years.

• More than half (51%) of all voters identified small businesses as the primary engine of U.S. job growth (compared to 49% in March), followed by big businesses (17%), entrepreneurs (16%) and the federal government (12%).

Voters identify three principal threats to job creation over the next two years: chronically high budget deficits, expansion of the government’s role in the economy and higher taxes.

• Voters are equally divided with respect to identifying the greatest threats to job creation: 24% think that “chronically high budget deficits” will be the principal threat to job creation over the next two years, 24% feel that “expansion of the government’s role in the economy” will be the primary issue and 22% think that “higher taxes” will be the primary threat to job creation.
• Thirteen percent identify “trade barriers or tariffs” as the greatest threat to job creation and six percent say that “limits on carbon emissions to combat global warming” is the greatest threat to job creation.

Voters are also concerned about the national debt and its impact on job creation.

• Nearly six in ten (58%) voters are “very concerned” that chronically high budget deficits will have a negative impact on job creation. An additional 25% of voters are “somewhat concerned” about the issue.

Most voters do not think that the recent health care reform legislation will result in the creation of more jobs in the U.S.

• Fewer than three in ten (29%) voters think that the health care reform legislation will result in more jobs in the U.S.; fully 61% feel that the legislation will not result in more jobs.
• Half of the voters were asked the question in a different way, and the legislation was described as having been “passed in March by this administration and Congressional Democrats…” When asked the question using this language, there was only a slight change in the outcome: 34% of voters felt that the legislation would result in more jobs in the U.S. when the question was asked in this way.

Slightly more than half (54%) of voters feel that labor unions have a negative impact on job creation in the U.S.

• While 31% of voters feel that labor unions have a positive impact on job creation in the U.S., most (54%) feel that labor unions have a negative impact (and 28% of voters feel that way “strongly”).

Administration Policies

Across the board, small business owners feel that this administration’s policies are not having a positive impact on the country’s economic situation.

• A plurality of small business owners (46%) think that this administration’s policies are making the economy worse, while 22% feel that this administration’s policies are having no real effect. Just 30% believe that this administration’s policies are making the economy better.
• Similarly, 44% of small business owners think that this administration’s policies will result in fewer jobs in the U.S., compared with 30% who believe that this administration’s policies will result in more jobs (19% believe that this administration’s policies will have no effect on the U.S. job situation).
• Nearly six in ten (57%) small business owners feel that this administration does not have a clear plan for creating jobs.
• A plurality (46%) of small business owners are “not confident” that this administration’s economic team will be able to solve the financial crisis and fix the problems that caused it. An additional 19% are “just somewhat confident” in this administration’s economic team’s capabilities. Just 33% of small business owners are either “very” or “fairly confident” that this administration’s economic team can solve the current financial crisis and fix the problems that caused it.

Nearly seven in ten (68%) small business owners agree that this administration’s new rules and regulations are expanding the size of government “far too much, resulting in a weaker U.S. economy and fewer jobs.”

• Forty percent of small business owners “strongly agree” with this sentiment.
• Just 18% “disagree” with the above statement.

Across the board, voters feel that this administration’s policies are not having a positive impact on the country’s economic situation.

• A plurality of voters (43%) thinks that this administration’s policies are making the economy worse, while 30% feel that this administration’s policies are having no real effect. Just 23% believe that this administration’s policies are making the economy better.
• Similarly, 39% of voters think that this administration’s policies will result in fewer jobs in the U.S., compared with 30% who believe that this administration’s policies will result in more jobs (27% believe that this administration’s policies will have no effect on the U.S. job situation).
• More than six in ten (62%) voters feel that this administration does not have a clear plan for creating jobs.
• Most voters (51%) are “not confident” that this administration’s economic team will be able to solve the financial crisis and fix the problems that caused it. An additional 26% of voters are “just somewhat confident” in this administration’s economic team’s capabilities. Just 23% of voters are either “very” or “fairly confident” that this administration’s economic team can solve the current financial crisis and fix the problems that caused it.

Most voters (60%) agree that this administration’s new rules and regulations are expanding the size of government “far too much, resulting in a weaker U.S. economy and fewer jobs.”

• Forty-two percent of voters “strongly agree” with this sentiment.
• Just 37% of voters “disagree” with the above statement.

Budget Deficit

In order to improve the economy, small business owners suggest that this administration should be spending less money.

• A plurality (45%) of small business owners think that the federal government should improve the U.S. economy by spending less money and focusing on reducing the deficit. Thirty-three percent of small business owners feel that the federal government should be “spending more money in order to improve the economy.”

In order to improve the economy, voters agree that this administration should focus on deficit reduction rather than increasing spending.

• Fifty-nine percent of voters agree that the more important priority for this administration should be “reducing the deficit, even if it might slow down our economic recovery.” Just 33% think that the administration should be “stimulating economic recovery through more spending.”
   

Similarly, six in ten (60%) voters think that the federal government should improve the U.S. economy by spending less money and focusing on reducing the deficit. Thirty-six percent of voters feel that the federal government should be “spending more money in order to improve the economy.”

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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File Attachments: 

For the full survey of voters visit

For the full survey of small business owners visit