New poll finds deepening economic gloom

WASHINGTON – The deepening recession has eroded both the financial standing and optimism of a broad swath of Americans, nearly two-thirds of whom say they have been hurt by the downturn and that the country has slipped into long-term economic decline.

A new Washington Post-ABC News poll also found that a rapidly increasing share of Americans – 66 percent, up from just over half a year ago – are worried about maintaining their standard of living. Nearly two in 10 said they or someone living in their household have lost a job in the past few months, and more than a quarter said they had their pay or hours reduced. And 15 percent said that at some point in the past year they fell behind on their rent or mortgage.

The poll captures the widening fallout from the faltering economy that policy makers are struggling to contain.

The poll found that nearly two-thirds of Americans support new federal spending to stimulate the economy, and majorities of both Democrats and Republicans back the idea. Concern about deficit spending, however, mutes enthusiasm for the stimulus plan. When asked whether they would back the plan if it increased the deficit, support dropped to 47 percent. Overall, nearly nine in 10 said they are worried about the size of the federal budget deficit, including nearly half who are “very concerned.”

Most, 55 percent, said that President-elect Barack Obama is off to a good start in dealing with the economy, which the vast majority of Americans call the No. 1 issue confronting the country. Only 10 percent of poll respondents said that Obama is on the wrong track in terms of his economic vision. Nearly half expect Obama will be able to improve the economy “a great deal” or a “good amount.”

But so far the overall federal response to the economic situation gets low marks: Just 24 percent approve of the way President Bush is handling the economy and a similarly paltry 23 percent approve of the broader federal response to the crisis.

Democrats, Republicans and independents alike are highly critical of the federal action to address the crisis – among each group, more than seven in 10 disapprove. In part those criticisms stem from skepticism that the government has put in place adequate controls to avoid waste and fraud in the use of federal money in the economic recovery effort. Only 30 percent are confident proper regulations were enacted.