Among Americans, A Sudden Concern About The Deficit

American’s may have heard about the warnings from Moody’s and S&P. The two credit ratings agencies announced that they could downgrade the US’s AAA ratings.

According to Gallup, while unemployment remains the single greatest concern among those polled, “focus on the federal deficit has edged up, and, although similar to the rate mentioning it last February, the 12% of Americans citing it this month is numerically the highest Gallup has recorded in at least a decade.”

Concerns about the deficit are still extremely modest compared to the focus on jobs which says a great deal about how Americans view the prospects for the economy over the next year. These concerns should be falling rapidly, if there is a belief that a 2011 recovery will be accompanied by a drop in unemployment. Fed Chairman Ben Bernanke recently said GDP growth could be 3% or better next year. He said separately that jobless may not hit the “normal” level of 5% or 6% for as many as four years.

Another notable trend in the Gallup poll is that concerns about fuel and oil prices have begun to emerge. Many media reports  are predicting that oil will move above $100 and gasoline above $4. Some economists believe these increases could hamper the economic recovery, which in turn, could damage job creation.

Americans still believe that the safety of their jobs and those of others are the most troubling issue for 2011, whatever their means of deciding that is.

Methodology: Results for this Gallup poll are based on telephone interviews conducted Jan. 7-9, 2011, with a random sample of 1,018 adults, aged 18 and older, living in the continental U.S., selected using random-digit-dial sampling.

Douglas A. McIntyre