RESEARCH FINDINGSEconomic Leader Survey Findings

PETER G. PETERSON FOUNDATION

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Methodology

� GSG conducted a survey among top economic leaders from the last eight administrations and Congress between April 5 and April 23,2010.

• Individuals who are currently serving public office were not solicited for participation in accordance with the research design.

• Respondents completed the survey online and via the mail.

� The 58 respondents who completed the survey are comprised of former:– Secretaries of the Treasury

– Federal Reserve Presidents and members of the Board of Governors

– Directors of the Office of Management & Budget

– Chairs of the Council of Economic Advisors

– Directors of the Congressional Budget Office

– Senate Budget Committee Chairmen/Ranking Members

– House Budget Committee Chairmen/Ranking Members

– House Ways and Means Committee Chairmen/Ranking Members

� For the purposes of analysis, respondents are assigned a party affiliation based on their personal affiliation (if an elected official) or by the administration that appointed them.

63%

71%

34%

24%

2%

6%

Republicans

Democrats

STRONGLY

AGREE

There is bipartisan consensus that we are heading for another major economic crisis if

action is not taken soon; unanimous agreement that the current fiscal path is

unsustainable and long term structural deficits threaten our economic future.

SOMEWHAT

AGREE

STRONGLY

AGREE

SOMEWHAT

AGREE DISAGREE

DISAGREE

Do you agree or disagree that if we do not act soon to address the nation’s long term fiscal situation we are heading for another major economic crisis?

•There is unanimous agreement (100% of both R’s and D’s strongly agree) that the federal government is currently on an unsustainable fiscal path

•There is unanimous agreement that long-term structural deficits are more threatening to the country’s future than short term deficits.

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8%

0%

82%

12%

6%

92%

Within the next 1-2 years

Within the next 3-5 years

Within the next 6-10

years

Reps Dems

An overwhelming majority believes action is needed in the

short term to avoid another major crisis.

4

When should the U.S. government begin to take action to address the long term fiscal situation?

0%

71%

65%

44%

61%

41%

22%

15%

3%

5%

71%

65%

53%

47%

41%

41%

29%

18%

0%

0%

0%

59%

80%Rapid growth in fed spending

Rise in interest rates

Decline in U.S. stnd of living

Decline in value of dollar

Weakened U.S. standing as world leader

Slower economic growth

Foreign lenders losing confidence in U.S.

Rise in inflation

High unemployment

Drop in housing prices

Increase in foreclosures

Reps

Dems

Majorities foresee high likelihood of rapid growth in spending,

rising interest rates and a lower standard of living in the U.S.

without addressing current structural deficit challenges.

5

If we fail to enact meaningful measures to address longer term structural deficit challenges within the next few years, how likely is it that we will encounter…?

VERY LIKELY

0%

0%

0%

Bipartisan agreement that solutions to longer term structural deficits include tax increases and spending cuts.

68% Both spending cuts

and tax increases

32% No Tax

Increases

As you think about approaches to solve the country’s longer term structural deficits, which one statement best represents your point of view?

Zero Republicans and Democrats believe we can solve our problems without spending cuts

12% No Tax

Increases

88% Both spending cuts

and tax increases

Republicans Democrats

6

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Indeed, there is more bipartisan agreement than dissention on ways to address the country’s fiscal challenges.

For each of the following ways to address our country's long term fiscal challenges, do you believe it should be seriously considered even if not politically popular or do you believe it should not even be considered?

94%

72%

88%

63%

88%

56%

56%

3%

6%

8%

5%

6%

28%

12%

37%

12%

44%

44%

100%

100%

97%

100%

100%

94%

92%

100%

95%

Reps

Dems

Reps

Dems

Reps

Dems

Reps

Dems

Reps

Dems

Reps

Dems

Reps

Dems

Reps

Dems

Should be seriously considered,

even if not politically popularShould not

be considered

Overall spending cuts

Entitlement reform – including Social Security, Medicare and Medicaid

Reform our federal tax code

Re-impose statutory budget controls such as

spending caps and stricter PAY-GO rules

Significant decreases in discretionary spending

Tax increases

Find a new source of revenues

Significant decreases in defense spending

THANK YOU