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Americans' Attitudes Shifting on Economy, Health Care

Surveys find both increased optimism and concern

By Mark Huffman and James Limbach
ConsumerAffairs.com

September 25, 2009
How are Americans feeling these days about the state of the world and their place in it? Depends on who you ask.

A pair of new surveys reveal changing attitudes from the country on everything from the economy, to health care reform, to the wars in Iraq and Afghanistan. While one survey shows increased optimism about the economy due to low gas prices, another shows greater concern about both individual health care and what the proposed reform may do to it.

Green shoots?

The latest University of Michigan Survey of Consumer Confidence shows a distinctly optimistic trend when it comes to consumers' economic sentiment. The September index rose to 73.5 from 65.7 in August, and stands at its highest point since the beginning of the recession, in January 2008.

At the end of last September, consumers were anything but confident. Many were terrified as the credit crises jolted the financial markets in the wake of the Lehman Brother's bankruptcy. This time last year Congress was debating a $700 billion “bailout” bill – a sum that at the time seemed huge but now seems less so.

Unemployment remains at 9.7 percent, so what's behind the growing optimism?

It could be gasoline prices, a factor that usually carries heavy weight with consumers. When gas prices are rising, consumers tend to be anxious. When prices are falling, or at least not rising, consumers tend to feel better. Over the summer, prices have remained fairly stable, slowly falling from their high in early June.

The housing market also has shown recent signs of life. Sales of existing homes rose four straight months before falling slightly in August. But the August sales are still 12 percent above year ago levels. Friday the National Association of Homebuilders reports new home sales in August actually increased slightly over July.

Consumers whose retirement accounts had been devastated by the stock market sell off earlier this year have reason to smile again. The stock market has rallied 50 percent since early March and the Dow Jones Industrial Average is approaching the 10,000 level.

Finally, even the Federal Reserve, whose job it is to keep the economy on track, seems to be feeling more confident. After its two day meeting this week, Fed policymakers said there were signs that the economy has begun to grow again, although very slowly.

Health, economy remain top priorities

Meanwhile, there has been a noticeable shift in Americans' attitudes towards health care as an issue, according to findings in a new Franklin & Marshall College Poll, produced in partnership with Hearst Television.

Half of those surveyed say the "economy/personal finances/cost of living" remains the #1 "problem" facing them and their families, compared with down from 65 percent (of registered voters) in October 2008. The second greatest problem cited -- "health care/insurance" -- jumped to 19 percent from nine percent in October 2008.

"Government/politicians" ballooned as a "problem" from 1 percent in October 2008 to five percent today, while "gasoline/oil/energy prices" evaporated as a "problem" -- to zero from four percent in October 2008 and 22 percent in June 2008. Additionally, only 54 percent say these "problems" can be solved with the help of government, versus 68 percent in October 2008.

On the health care issue, a substantial number (88 percent) of Americans say they have health care coverage provided by their employer, or a private plan, or a government plan such as Medicare, Medicaid or SCHIP, while 12 percent indicate they do not have coverage. However, one in five (19 percent went without coverage at some point during the last year.

Those asked support the president's health care reform proposals over Republican proposals in Congress by a roughly two to one margin (47 to 21 percent). Still, a third of respondents could not say who has better ideas.

While more than three in four favor health care reform, paradoxically, a nearly identical number say the current healthcare system is meeting their needs "very well" or "pretty well," with only 21 percent saying the current system is not meeting their needs. Among those who are dissatisfied with the current system, cost is overwhelmingly cited as a primary concern.

When asked how the U.S. health care system compares with that of other industrialized nations, 36 percent say it is "above average," 29 percent say "average," and 30 percent say "below average." The cost of healthcare and the availability of health insurance coverage were significant problems for about one in five adults during the past year.

The healthcare debate continues to influence attitudes toward the administration. A slim majority (51 percent) of registered voters believe President Obama is doing an "excellent" or "good" job, while nearly as many (47 percent) think he is doing a "fair" or "poor" job. A large majority (74 percent) of Democrats said the president is doing an "excellent" or "good" job, versus 25 percent who say he is doing an "only fair" or "poor" job.

The president's job performance ratings among Republicans are substantially lower (13 percent "excellent" or "good" and 83 percent "only fair" or "poor"). Independents are more divided, with 47 percent saying "excellent" or "good" and 54 percent rating him "only fair" or "poor").

Also, roughly half of registered voters approve of the president's handling of the situation in Afghanistan; 29 percent disapprove. In addition, 54 percent say they personally favor the U.S. military operation in Afghanistan, while 36 percent oppose.

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