MISH'S

Global Economic
Trend Analysis
Americans Reject Keynesian Economics; 83% Blame Deficit on Politicians

In light of actual policies coming from Congress and the Obama administration you may be
surprised to learn Americans Reject Keynesian Economics.

Richard Nixon once said, “We’re all Keynesians now.” But that was a long time ago, and it’s
certainly not the case anymore (if it ever was).

While influential 20th Century economist John Maynard Keynes would say it’s best to
increase deficit spending in tough economic times, only 11% of American adults agree and
think the nation needs to increase its deficit spending at this time. A new Rasmussen Reports
national telephone survey finds that 70% disagree and say it would be better to cut the deficit.

In fact, 59% think Keynes had it backwards and that increasing the deficit at this time would
hurt the economy rather than help. To help the economy, most Americans (56%) believe that
cutting the deficit is the way to go.
83% Blame Deficit on Politicians

Placing blame squarely where it belongs, 83% Blame Deficit on Politicians’ Unwillingness
To Cut Spending.
Eighty-three percent (83%) of Americans say the size of the federal budget deficit is due more
to the unwillingness of politicians to cut government spending than to the reluctance of
taxpayers to pay more in taxes.

A new Rasmussen Reports national telephone survey shows that just nine percent (9%) of
adults put more blame on the unwillingness of taxpayers to pay more in taxes.

Ninety-four percent (94%) of Republicans and 91% of voters not affiliated with either major
party place the blame on politicians, and two-thirds (66%) of Democrats agree.

Just 11% of all voters now think the government spends taxpayers’ money wisely and well.
Seventy-eight percent (78%) do not believe that to be true.

Again, 90% or more of GOP voters and unaffiliateds don’t think the government handles
taxpayers’ money well, compared to 54% of Democrats.
Republicans Trusted More On Key Issues

Please consider Trust on Issues

Voters now trust Republicans more than Democrats on nine out of 10 key issues regularly
tracked by Rasmussen Reports.

But the latest national survey finds that the two major political parties are much closer this
month on the top issue of the economy. Forty-six percent (46%) of voters trust the GOP more
on economic issues, while 42% trust Democrats more. Another 12% are undecided. Last
month, Republicans held an 11-point edge on the issue and had a 12-point lead in November.

In fact, the latest results mark the highest level of trust in Democrats on economic issues since
last May.

Among voters nationwide, 81% see the economy as a very important issue.

Among voters not affiliated with either party, Republicans lead 45% to 32% on economic
issues over Democrats. Mainstream voters heavily favor the GOP on economic issues, 58% to
28%. Those in the Political Class trust Democrats more, 84% to 16%.

The plurality of voters (37%) still doesn’t know which party to trust more on government
ethics and corruption, an issue voters place second in terms of importance. Democrats now
hold a small 33% to 30% edge on the issue, after the parties were tied in January.

Republicans hold double-digit leads over Democrats in terms of trust on the issues of taxes,
health care, Social Security, immigration and abortion. In January, Republicans held just a
three-point lead on health care.

Forty-six percent (46%) of voters favor a tax cut for all Americans, while 35% are opposed.
Forty-one percent (41%) prefer a budget deficit with tax cuts over a balanced budget that
requires higher taxes, but 36% favor the opposite approach.

On national security, Republicans are trusted more by a 49% to 40% margin after leading by
17 points in January. This marks the first poll to show Republicans earning less than 50% of
voters’ trust on the issue since August of last year.

Recent polling shows that voter confidence in U.S. efforts in the War on Terror is near its
lowest level in recent years. Only 36% of voters say the United States is safer today than it
was before the terrorist attacks on September 11, 2001, marking the lowest level of
confidence since Rasmussen polling first asked the question in 2002.
Partisan Trends

Here's some encouraging news on partisan trends. The Number of Unaffiliateds Jumps to
Highest Total Since 2007.
In January, the number of Americans identifying themselves as Democrats fell another tenth-
of-a-percentage point. Now the number of Democrats is at the lowest level recorded in more
than seven years of monthly tracking by Rasmussen Reports.

However, in January, the number of Republicans in the country dropped by nearly two
percentage points.

Currently, 35.4% of American adults view themselves as Democrats. That’s down from
35.5% a month ago and 36.0 two months ago. Prior to last month, the lowest total ever
recorded for Democrats was 35.9%, a figure that was reached twice in 2005.

The number of Republicans is now down to 32.3%. The number of Republicans in the country
has stayed between 32.3% and 34.05% in every month for the past 18 months.
The number of adults not affiliated with either major party is now up to 32.3%. That’s the
highest number of unaffiliateds since the summer of 2007.
This is a welcome trend as it shows ambivalence if not outright mistrust of both parties. It is
also a sign that we are going to see a lot of turnover this Autumn. Let's hope so. I am
increasingly of the point of view Republicans stand a good chance at recapturing the House.

When In Doubt, Vote Them Out

I see no reason to trust either party. Moreover, I am hoping voters decide to adopt my policy
"When In Doubt, Vote Them Out", this autumn. Of course, you should also vote out those
you know without a doubt are pathetic, starting with anyone whose grand solution is to raise
taxes or spend more money.

We need to send a message to Congress and a nice clean sweep would do it.
Mike "Mish" Shedlock