Govt Gets 'F' For Response to Financial Crisis

Full release with charts (PDF)

Quarter 4, 2008

Government Gets an 'F' For Response to Financial Crisis

For Immediate Release, January 15, 2009

An overwhelming majority of Arizona small businesses (88%) rate the federal government's current response to the financial crisis as either poor (51%) or fair (37%). Barely one-in-ten (12%) rated the response as either good (11%) or excellent (1%). According to the poll's director Dr. Michael O'Neil, "These figures are a damning indictment of the federal government's actions with respect to the economy.

The vehemence of these feelings is further evident in responses to a follow up question. We asked specifically about what impact the government's actions to date has had on each respondent's business. Over a third (35%) indicated that the government's actions have had a negative impact; only 4% indicated the government's actions have had a positive impact. Combined with the majority (61%) that indicated the government's actions have had no impact, fully 96% of Arizona businesses report that the government's actions to date have had either no impact or a negative impact on their business."

Big Dollars for the Big Boys; Nothing for the Little Guy

The basis of this vehemence is evident in the responses to five separate questions. We asked whether or not the federal government has done too much, about the right amount, or not enough to help five separate groups. Clear majorities feel the government has done too much to help the financial industry (65%), large businesses (51%), and the auto industry (51%). Relatively small proportions feel that the government has not done enough for each of these entities. In contrast, 63% feel the government has not done enough to help individual homeowners. An even larger proportion feels the government has not done enough to help small businesses (78%).

Public Expenditures

We probed the sensibilities of Arizona small businesses about their views of increased government expenditures for government works. A modest majority (56%) chose the option, "I favor increased government expenditures in public works infrastructure projects; we need to stimulate the economy." A somewhat smaller group (44%) chose the option, "I oppose increasing public expenditures, we should live within our means." According to the poll's director, Dr. Michael O'Neil,

"The near even split of responses indicates a real ambivalence of this group of small businesses with respect to increased government expenditures. While there is majority support for increased government expenditures in public works infrastructure projects to stimulate the economy, the fact that it is only 56% suggests that the level of support is tenuous majority."

These results are taken from the Q4 O'Neil Associates/ASBA Arizona Economic Indicators Monitor. This project provides insights to support business leaders in companies of all sizes to make key economic decisions, as well as sharing small business attitudes on major political issues. O'Neil Associates, a national public opinion research firm based in Tempe, sent surveys to ASBA's membership of 3,000 small businesses across the state as it did at the end of Q1, Q2, and Q3 2008. The survey covered a wide range of economic issues, including business performance, revenue and job growth, and overall business confidence ratings. Results provide insights into the perceptions of business owners on the economic health and vitality of the Arizona economy. Based on 285 responses, the survey has a margin of error (at the 95% confidence level) of approximately +/-6%.

Results of this survey may be cited freely with the proviso that they be cited as the "O'Neil Associates/ASBA Arizona Economic Indicators Monitor"

The O'Neil Associates/ASBA Arizona Economic Indicators Monitor is made possible by a cooperative effort of

O'Neil Associates, a national public opinion research firm based in Tempe, has done over 1700 public opinion and marketing research projects since 1981. These include surveys and focus group projects for a wide array of businesses throughout the country.

ASBA, the Arizona Small Business Association, is the leading voice for small businesses in the State of Arizona.

For a complete copy of all O'Neil Associates/ASBA Arizona Economic Indicators Monitor reports released to date, as well as opinion research reports on an array of other topics visit http://www.oneilresearch.com/publicdomain or click on the banner below.
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Visit http://blog.oneilresearch.com/ or click the icon above to read Mike O'Neil's political blog.

ENDS

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