With Election Approaching, Voters Continue to View Long-term Debt as Key Issue for Policymakers to Address

Jul 30, 2014

Contact: Sarah Stipicevic, Press Secretary
(212) 542-9265 sstipicevic@pgpf.org

The July 2014 Fiscal Confidence Index, Modeled after the Consumer Confidence Index, is 41 (100 is Neutral)

Americans See Debt as a Top Priority

NEW YORK — The Peter G. Peterson Foundation’s July Fiscal Confidence Index, a monthly measure of public attitudes about the nation’s long-term debt and the efforts elected leaders are making to address America’s fiscal challenges, shows that Americans remain highly concerned about the nation’s fiscal situation. The Fiscal Confidence Index, modeled after the Consumer Confidence Index, is 41 (100 is neutral), indicating continuing negative public sentiment about America’s fiscal future.

More than two-thirds of voters (68%) say that the country is on the wrong track when it comes to addressing the national debt, including a majority (53%) who feel strongly the country is off course. To address this problem, more than eight in ten Americans (83%) are calling for the President and Congress to spend more time on the national debt, with almost eight in ten (79%) agreeing that the national debt should be among the President and Congress’ top three priorities.

"In the heat of election season, voters are calling on their leaders to address our nation’s long-term fiscal and economic future. Americans recognize the need to put our country on a stable fiscal path, which ensures a vibrant growing economy, today and in the future,” said Michael A. Peterson, President and COO of the Peter G. Peterson Foundation.

The Fiscal Confidence Index measures public opinion about the national debt by asking six questions in three key areas:

  • CONCERN: Level of concern and views about the direction of the national debt.
  • PRIORITY: How high a priority addressing the debt should be for elected leaders.
  • EXPECTATIONS: Expectations about whether the debt situation will get better or worse in the next few years.

The survey results from these three areas are weighted equally and averaged to produce the Fiscal Confidence Index value. The Fiscal Confidence Index, like the Consumer Confidence Index, is indexed on a scale of 0 to 200, with a neutral midpoint of 100. A reading above 100 indicates positive sentiment. A reading below 100 indicates negative sentiment.

Fiscal Confidence Index Key Data Points:

  • The July 2014 Fiscal Confidence Index value is 41. A score of 100 is neutral. Values below 100 show negative sentiment, while values above 100 show positive sentiment. (June’s value was 41. May’s value was 44.)
  • The current Fiscal Confidence Index score for CONCERN about the debt is 34, indicating deep concern about the debt. The score for debt as a PRIORITY that leaders must address is 24, indicating that Americans want elected leaders to make addressing long-term debt a high priority. The score for EXPECTATIONS about progress on the debt is 65, indicating strong pessimism about the direction of long-term fiscal policy in the next few years. The Fiscal Confidence Index of 41 is the average of these three sub-category scores.
  • For a description of the complete methodology, see the Appendix below.

The Peter G. Peterson Foundation commissioned a poll by the Global Strategy Group and North Star Opinion Research to survey public opinion on the national debt. The nationwide poll included 1,001 U.S. registered voters, surveyed by telephone between July 21 and July 24, 2014. The poll has a margin of error of +/- 3.1%. The poll examined voters’ opinions on the national debt, political leadership, and America’s fiscal and economic health.

Detailed poll results can be found online at: www.pgpf.org/what-we-are-doing/education-and-awareness/fiscal-confidence-index

About the Peter G. Peterson Foundation
The Peter G. Peterson Foundation is a non-profit, non-partisan organization that is dedicated to increasing public awareness of the nature and urgency of key long-term fiscal challenges threatening America's future, and to accelerating action on them. To address these challenges successfully, we work to bring Americans together to find and implement sensible, long-term solutions that transcend age, party lines and ideological divides in order to achieve real results. To learn more, please visit www.pgpf.org.

 

APPENDIX: Fiscal Confidence Index Methodology and Questions

  • The Fiscal Confidence Index is released monthly by the Peter G. Peterson Foundation.
  • The Fiscal Confidence Index value is based on six questions in three categories.
  • As is done with the Consumer Confidence Index, the first step in calculating the Fiscal Confidence Index is determining the "Relative Value" for each question. This calculation is made by taking the positive response for each question and dividing it by the sum of the positive and negative responses. Each question was asked on a four-point scale, and answers were weighted according to intensity, with the strongest responses counting twice as much as the middle responses ("much" better or worse answers count twice as heavily as "somewhat" better or worse answers).
  • The scores for the Concern, Priority, and Expectations categories are determined by averaging the scores derived from the two questions in each category.
  • The Fiscal Confidence Index value is converted from the Relative Value to place it on a scale on which 100 indicates equal positive and negative sentiment, while values below 100 indicate negative sentiment and values above 100 indicate positive sentiment.
  • The Peter G. Peterson Foundation commissioned the poll by the Global Strategy Group and North Star Opinion Research to survey public opinion on the national debt. The nationwide poll included 1,001 U.S. registered voters, surveyed by telephone between July 21 and July 24, 2014. The poll has a margin of error of +/- 3.1%. The poll examined voters’ opinions on the national debt, political leadership, and America’s fiscal and economic health.
  • The questions are as follows:

CONCERN (34)
Thinking about our national debt over the last few years, would you say your level of concern has increased or decreased?
◊ Is that a lot or just a little?
  July 2014 June 2014 May 2014
Increased a lot 53% 50% 51%
Increased a little 19% 19% 19%
Decreased a little 10% 12% 8%
Decreased a lot 5% 4% 6%
(No change) 12% 14% 15%
(Don't Know/Refused) NA 1% 1%
INCREASED (NET) 72% 69% 70%
DECREASED (NET) 16% 16% 15%
 
When it comes to addressing our national debt, would you say things in the United States are heading in the right direction or do you think things are off on the wrong track?
◊ Do you feel that way strongly or just somewhat?
  July 2014 June 2014 May 2014
Right direction-Strongly 7% 9% 8%
Right direction-Somewhat 15% 16% 15%
Wrong track-Somewhat 15% 18% 19%
Wrong track-Strongly 53% 46% 45%
(Neither/Mixed) 6% 8% 9%
(Don't Know/Refused) 3% 4% 4%
RIGHT DIRECTION (NET) 22% 24% 24%
WRONG TRACK (NET) 68% 63% 64%

 

PRIORITY (24)
Some people say that addressing the national debt should be among the President and Congress' top 3 priorities. Do you agree or disagree?
◊ Do you feel that way strongly or just somewhat?
  July 2014 June 2014 May 2014
Strongly agree 58% 58% 58%
Somewhat agree 21% 24% 21%
Somewhat disagree 8% 9% 10%
Strongly disagree 8% 5% 8%
(Don't Know/Refused) 5% 4% 4%
AGREE (NET) 79% 82% 79%
DISAGREE (NET) 16% 15% 17%
       
 
And when it comes to our national debt, do you think it is an issue that the President and Congress should spend more time addressing or less time addressing?
◊ Would you say a lot (more or less) time or just a little?
  July 2014 June 2014 May 2014
A lot more time 64% 61% 62%
A little more time 19% 21% 19%
A little less time 4% 7% 7%
A lot less time 5% 3% 4%
(The same amount of time) 3% 5% 5%
(Don't Know/Refused) 4% 3% 3%
MORE TIME (NET) 83% 82% 81%
LESS TIME (NET) 9% 10% 11%

 

 

EXPECTATIONS (65)
And thinking about our national debt over the next few years, do you expect the problem to get better or worse?
◊ Is that much (better or worse) or just somewhat (better or worse)?
  July 2014 June 2014 May 2014
Much better 8% 7% 7%
Somewhat better 15% 17% 18%
Somewhat worse 27% 29% 26%
Much worse 42% 38% 38%
(No change) 4% 5% 6%
(Don't know/Refused) 4% 5% 5%
BETTER (NET) 23% 24% 25%
WORSE (NET) 69% 67% 64%
 
And when it comes to our national debt, are you optimistic or pessimistic that the United States will be able to make progress on our national debt over the next few years?
◊ Would you say you are very (optimistic or pessimistic) or just somewhat?
  July 2014 June 2014 May 2014
Very optimistic 17% 16% 18%
Somewhat optimistic 28% 27% 29%
Somewhat pessimistic 17% 19% 17%
Very pessimistic 32% 32% 30%
(Neither/Mixed) 3% 4% 4%
(Don't Know/Refused) 3% 2% 3%
OPTIMISTIC (NET) 44% 43% 47%
PESSIMISTIC (NET) 49% 50% 46%

A Guide to Complex Budget Processes

Understanding what’s happening on Capitol Hill requires an understanding of the Congressional budget process.

FISCAL ISSUES ILLUSTRATED

This series of infographics helps put some of today's most pressing fiscal debates in context.