Do not tell Americans that they should worry about the deficit or the battle over the debt ceiling. Their concerns are much closer to home. They view jobs as a bigger issue than the federal government’s woes.

“All major subgroups of Americans thus far in 2011 have named either ‘the economy’ or unemployment as the nation’s top problem, although not necessarily in that order,” a new Gallup poll says.

Unemployment problems cascade into those of the deficit as slow jobs growth hinders consumer spending and, with that, tax receipts. Recent news on jobs has been negative. The May unemployment rate, new ADP worker data, and weekly jobless claims all show that job creation has been stifled. That, in turn, means that American companies have turned pessimistic about how the economy will do over the next year. Matters have been made even worse as firms turn to machines to improve productivity in the place of hiring. A recent story in The New York Times pointed out that “Workers are getting more expensive while equipment is getting cheaper, and the combination is encouraging companies to spend on machines rather than people.” Layoffs in 2008 and 2009 which increased productivity have now been extended by considerations over man-versus-machine.

There is not much news about the broad economy to brighten the attitudes of American workers. GDP growth has slowed to about 2%. There is more talk about a double-dip recession brought on in some part because of high gasoline prices and commodities. Consumers who spend more money on gas may spend less on shopping.

Americans also watch the effects that government austerity plans have begun to have in places like Greece and Ireland. The austerity plans of many Congressmen are not as severe as those in Greece or Ireland, but they could affect the government spending that creates jobs and, eventually, Social Security and Medicare. A new stimulus program, which many economists believe is essential to increase GDP improvement enough to significantly improve the job market, has found little support in Washington.

Americans are concerned about their jobs because they are smart and can see a future in which job creation may be no more likely than it has been over the last three years.

Douglas A. McIntyre

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