Public Passes on New Deal

Perhaps you've read -- several hundred times by now -- that the financial panic means we are returning to a new day of expanding government. Well, maybe not, if the American people are consulted. A new survey by the Kauffman Foundation describes a country that is worried about the impact of the financial turmoil on their lives, but is equally worried about what government might do to fix it.

For example, the survey asked, "What poses the greatest threat to your own economic situation?" The runaway winner was "higher taxes," which 50% cited as their first or second biggest worry. "The low value of the dollar abroad" was runner-up, picked first or second by 30% of respondents. The "housing market collapse" clocked in at third, with 25%, the federal budget deficit and debt next at 20%, and "corporate fraud and abuse" at 17%.

Perhaps this explains why all that pounding by John McCain and Sarah Palin about corruption on Wall Street hasn't done much for their standing in the polls. Perhaps this also explains why Barack Obama is at such pains to conceal his plans to raise taxes.

The survey, which was conducted by Luntz, Maslansky Strategic Research between September 26 and 29, did show that 59% support increased government regulation of the financial markets. Amid the current mess, that's not surprising. But when asked in whom they had the most "faith and confidence" when it comes to guiding the economy, a mere 7% picked "the government in Washington." "The American people," with 25%, was the favorite; "the free market system," with 14%, got twice the support of the Beltway class. The public doesn't seem to be aching for a new New Deal.

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