AEI PUBLIC OPINION STUDIES
Five Years After the Crash What Americans Think about Wall Street, Banks, Business, and Free Enterprise
KARLYN BOWMAN ANDREW RUGG
AMERICAN ENTERPRISE INSTITUTE Five Years After the Crash: What Americans Think about Wall Street, Banks, Business, and Free Enterprise
In September 2008, Americans were focused on an in the field providing regular surveys of attitudes using extraordinary series of events in the financial markets trusted methods. What we do is unique: we compare and government responses to them. Although the prob- the questions asked by the major pollsters and analyze lems in the financial sector had begun earlier, the col- their results. To do our work, we also use the invaluable lapse of Lehman Brothers, the bailout of AIG, Fannie poll archive of the Roper Center at the University of Mae and Freddie Mac in receivership, and a possible Connecticut, which is the largest data trove of its kind stock market meltdown concentrated their attention. in the world. All of the trend data we use in this docu- Polls from the fall of 2008 showed that Americans ment appears in the appendix. were frightened about the health of our financial sys- Polls have limitations, and we are well aware of them. tem. The Reuters/University of Michigan October pre- Response rates are low. How questions are worded liminary report on consumer sentiment registered “its can pull people in one direction or another, especially largest monthly decline in the [50-plus-year] history of when public knowledge is low. This is particularly true the surveys.” Other surveys showed that many Ameri- in times of crisis when attitudes can be volatile. The cans feared an economic collapse. How have attitudes time frame in which questions are asked is also import- changed since then? Over the past five years, pollsters ant. In today’s fast moving news cycle, concerns of the have asked Americans hundreds of questions about the moment can color opinions on related (and sometimes crisis and the events that followed that help us answer unrelated) issues. We do not believe any single poll or that question. question can capture the public’s mood. But looking at Public uncertainty about the US economic future many polls with different wordings does provide a good has been high for the past five years. Although the sense of Americans’ true feelings. National Bureau of Economic Research tells us that the Polls often reveal areas of substantial continuity, but recession ended in June 2009, its effects are still being we also see considerable change and many contradic- felt throughout the land, and they have left a significant tions. That is one of the reasons we do not believe polls imprint on many aspects of public opinion, including should be used to make policy. They are too crude for confidence in institutions. There is some evidence that that purpose. But by comparing hundreds of individual Americans believe the economy has begun to recover, survey questions, we hope to provide an objective and but it is tentative and inconsistent at best. informative account of how Americans felt about busi- At the American Enterprise Institute, we study ness five years ago and how they feel now. public opinion on many different topics. In recent We begin by examining public opinion in Septem- months, we have prepared public opinion reports on ber 2008, when the public began paying attention to the environment, homosexuality and gay marriage, what was happening in the markets. We then look at and National Security Agency surveillance. For our attitudes about Wall Street and, separately, banks and research, we draw on polls in the public domain. By business. The next section examines how public views that, we mean that we do not conduct polls of our own. of regulation changed as a result of the crash. We also Today there are more than a dozen national pollsters look at the health of the free enterprise system.
1 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
September 2008 Americans were riveted to the crisis. Since 1985, the Pew Research Center has been compiling reg- The Roper Center archive includes more than 1,800 ular reports on news stories people are following. In survey questions asked September 1–15, 2008, the its October 1, 2008, report, 70 percent of Americans period preceding the collapse of Lehman Brothers, were following economic developments very closely, the sale of Merrill Lynch to Bank of America, and the up from 56 percent the previous week. Pew reported, impending collapse of AIG. Most are about the historic “[T]he current economic crisis becomes one of the top 2008 presidential campaign between Senators Barack ten most closely followed news stories in two decades Obama and John McCain. The recession was clearly a of Pew Research Center news interest surveys,” barely matter of great concern as well. A Gallup question from trailing events such as the 1986 Space Shuttle Chal- early September that asked people to name the most lenger disaster (followed very closely by 80 percent important problem facing the country found that the of those surveyed) and the 9/11 terrorist attacks (fol- economy dominated all other concerns, with 36 per- lowed very closely by 78 percent). In a Gallup/USA cent volunteering it as the most important problem (5 Today question from late September, 41 percent said percent is considered significant). they were afraid. In another question from the poll, 53 Even before turmoil hit Wall Street, people were feel- percent said they were angry. ing pessimistic about the country’s economic future and After the presidential election, concern deepened. their own. But not a single question in this period antic- Gallup found that 40 percent were worried “a great ipated the events that were to capture Americans’ atten- deal” about the possibility of the economy sinking into tion over the weekend of September 15, when Lehman depression (figure 1). In February 2009, an extraordi- Brothers was put into bankruptcy, and in the weeks that nary 94 percent told CBS News that the condition of followed as the Federal Reserve and the Treasury tried to the economy was bad. Sixty-three percent said it was prevent a meltdown in the financial sector. “very bad.” In a February 2009 Ipsos/McClatchy poll,
Figure 1 Worry about the US Going into a Depression
The possibility of the US economy going into a depression 40% worries you a great deal
A moderate amount 39%
Not much 14%
Not at all 7%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Source: Gallup/USA Today, December 2008.
2 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
54 percent said the worst was yet to come in the current wealthy, the median response was $150,000. An enter- economic crisis. The mood was bleak. ing associate at Goldman Sachs with an MBA earns Concern about a possible collapse of the financial over $100,000.1 system quickly affected people’s views of their finances. Most people tell pollsters that they are able to pay In a Gallup/USA Today poll from late September, over their bills now, but few say they are able to save. The half of those surveyed (55 percent) said they were worse financial lives of the money moguls on Wall Street (or off financially than they had been a year before, a rating for that matter, the lives of Hollywood stars or NBA that Gallup reported as “tied for the for the most neg- players) are hard for most people to comprehend. Polls ative reading in Gallup’s 32-year history of asking this over many decades show that Americans neither admire question.” In another Gallup/USA Today poll, 69 per- nor resent the rich. Roughly 6 in 10 believe, as two Gal- cent said their financial situation in the long run would lup polls from 1990 and 2012 show, that America ben- be harmed by the economic turmoil of the previous efits from having a class or rich people. Americans are two weeks. Seventy percent told Fox News pollsters in not inclined to a politics of envy, but when many are early October that they had personally tried to reduce just getting by, the behavior of some people on Wall their household and personal spending because of con- Street and the serious damage inflicted on the economy cern about the economy. were bound to provoke negative feelings among ordi- Worry about the economic situation had an impact nary Americans. in many areas—whether related to Wall Street or not. Pollsters routinely ask Americans how confident But much of the public’s attention was directed to the they are in various institutions. These questions are a financial sector. The next sections of this report exam- rough gauge of performance and of the trust we have ine confidence in Wall Street and banks during and fol- in, and the respect we have for, these institutions. Har- lowing this period. ris is the only pollster to have a substantial trend on views about Wall Street. Unsurprisingly, confidence in “the people in charge of running Wall Street” dropped Confidence in Wall Street dramatically after the crash. In 2009, only 4 percent told Harris that they had a great deal of confidence in Much of the blame for the crisis was directed at large those running Wall Street. Fifty-seven percent said they financial institutions, typically lumped in the pub- had hardly any. These answers are the respective low lic mind as “Wall Street.” These institutions are far and high points in Harris’s 23-year trend. The 2009 removed from most people’s lives, and they evoke com- “hardly any confidence” response is particularly strik- plex emotions in polls. ing, since it is double what it was in the nine iterations Only small numbers in surveys say they follow the of the question between 2000 and 2008. A question stock market closely. Still, around half (52 percent in a asked by NBC and the Wall Street Journal shows a sim- 2013 Gallup poll) say they or a spouse had money in ilar pattern. In July 2007, 30 percent had very little the market, in an individual stock, a stock mutual fund, or no confidence in the financial industry. By January or a self-directed 401k or IRA. For much of the public, 2009, this response had doubled, to 60 percent. the workings of the financial sector are a mystery. It is not as though Wall Street was wildly popular Wall Street’s wealth is also hard for most to compre- before the crash. When Harris began asking its confi- hend. In the late March–early April 2013 Economist/ dence question yearly in 1989, only 8 percent had high YouGov poll, 63 percent said they did not know any- confidence. High confidence topped out in the robust one who was a millionaire, while 35 percent said they economic times of 1999 and 2000, when 30 percent did. (In another question in the same poll, 51 percent gave that response (figure 2). A question asked by said they knew someone who had lost his or her job CNN and the Opinion Research Corporation in Octo- in the financial crisis, and another 7 percent said they ber 2011 shows the depth of negative feelings. They themselves had.) In a recent Pew survey, when asked found that 54 percent trusted Wall Street bankers and what it would take for a family of four to be considered brokers “not at all” to do what is best for the economy.
3 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
Figure 2 Confidence in People Running Wall Street
80%
70% Only some 60%
50% 48%
40% Hardly any 39%
30% Great deal 20%
10% 7% 0% 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 20092011
Note: Harris did not consistently report the “only some” and “hardly any” categories until 2000. Source: Harris Interactive, latest that of 2012.
Only 3 percent trusted them a great deal, and 20 per- 1996, 64 percent agreed that “most people on Wall cent somewhat. Street would be willing to break the law if they believed High confidence has recovered slightly since 2009, they could make a lot of money and get away with it.” but it remains below precrash levels. The 2012 Harris That rose to 71 percent in 2009 and is currently 70 per- poll shows a small uptick in positive views: 7 percent in cent. Seventy-nine percent told the Atlantic and Aspen 2012 expressed a great deal of confidence in the people Institute pollsters in 2012 that executives on Wall Street running Wall Street, up from, as stated earlier, 4 per- have a different set of values than they themselves do. cent in 2009. Looked at from the negative side, NBC In effect, Americans see Wall Street as a culture apart, and the Wall Street Journal found that those describing one that operates by a foreign code of conduct. their confidence in the financial industry as “very little” While these attitudes are hardly new, what is new is or “none at all” fell from 55 percent in September 2008 how deep-seated they have become. In virtually every to 48 percent in June 2013. It is clear that many people question in Harris’s battery about people who work are not willing to forgive and forget quite yet. on Wall Street, negative attitudes are bumping along at very low levels. In 1996, the first time Harris asked the question, a minority of 40 percent said that most Greed and Wall Street successful people on Wall Street deserved the kind of money they made. Fifty-five percent said they did Large majorities have long told pollsters that Wall not. In 2009, those responses were 30 and 66 percent, Street is greedy, selfish, and unethical. But negative respectively. In the latest question from 2012, they were sentiments were magnified by the events of the fall of 32 and 64 percent. Americans do not usually begrudge 2008. In 1996, for example, when Harris asked about others’ success, but in the case of Wall Street, they Wall Street’s morality for the first time, 43 percent told appear at least to be having second thoughts about it. interviewers that people on Wall Street were as “honest It is hard to know whether the attitudes about Wall and moral as other people.” That response dropped to Street greed and selfishness extend to perceptions of 26 percent after the crash. In another question from widespread corruption. The results of a July 2012 CBS
4 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
Figure 3 Views on Wall Street
Wall Street firms should only pay bonuses when 78% Agree they are doing well and making good profits 19% Disagree
Recent events have shown that Wall Street 82% should be subject to tougher regulations 15%
In general, people on Wall Street are as 28% honest and moral as other people 68%
30% In general, what is good for Wall Street 67% is good for the country
Most successful people on Wall Street deserve 32% to make the kind of money they earn 64%
Wall Street is dominated 59% by greed and selfishness 38%
Wall Street only cares about money 59% and absolutely nothing else 38%
Most people on Wall Street would be willing 70% to break the law if they believed they could make 27% a lot of money and get away with it
Wall Street is absolutely essential because it provides 62% the money businesses must have for investment 34%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Source: Harris Interactive, 2012. question are hardly encouraging. Nearly half, 49 per- disapproval of Wall Street stems from something deeper cent, said corruption in banks and financial institutions than the crash and economic downturn. Americans’ was widespread, but almost as many, 47 percent, said it concerns about Wall Street arise from doubts about was limited to only a few institutions. the moral bearings of people who work there. As long A silver lining (or at least a pale gray one) is that as Wall Street is seen as unethical, greedy, and possi- Americans continue to view Wall Street as absolutely bly corrupt, American will continue to worry about necessary. Sixty-two percent in 2012 told Harris that the capacity of large financial institutions to derail the Wall Street is absolutely essential because it provides economy. That concern will likely keep confidence the money business must have for investments (figure depressed for some time. 3). Views about Wall Street were pretty well summed up in 2009 and 2012 Pew surveys. In both, majori- ties told the pollsters that Wall Street makes an import- Banks, More Broadly ant contribution to the American economy (58 percent in 2009 and 63 percent in 2012) and that Wall Street It is hard to know from the available poll data exactly cares only about making money for itself (67 percent in what people are thinking about when pollsters ask 2009 and 72 percent in 2012). them about banks. Their local bank? A branch of a But just because Americans think Wall Street is nec- major financial institution? A big financial institution? essary, it does not mean that they trust it. The current The public polls do not give us the answers.
5 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
Pollsters have asked occasional questions about in banks. The next time Gallup asked the question in banks for 75 years, and they often reflect the preoccu- the difficult economic times of the early 1980s, strong pations of the times. In 1936, Roper/Fortune magazine confidence had dropped to 46 percent (1981). High interviewers asked whether different groups in society confidence dropped sharply again to 30 percent in abuse their power. Forty-two percent said the press did, 1991 after the savings and loan crisis of the late 1980s followed by 38 percent who gave that response about and another recession. bankers, 26 percent about “the pulpit,” and 23 percent By 1995, the proportion having a great deal or quite veterans. Fortune then went on to discuss what its inter- a lot of confidence in banks had risen again to 43 per- viewers heard in their in-person interviews. cent. Between 1995 and 2007, in 13 yearly surveys, high confidence never dropped below 40 percent. Pos- As for bankers and the press, comments from the itive economic news pushed confidence in banks to its interviewers indicate that many who answered ‘Yes’ highest point in the early part of this century, when to the first [bankers] based their opinions on specific strong confidence in several yearly polls reached about grievances, such as low interest rates on their depos- 50 percent. its or the refusal of a loan; and many of those who Before the financial crisis hit, confidence in banks answered ‘Yes’ to the second [the press] objected not was clearly slipping, most likely tied to the recession. In to the power of the press in molding public opinion 2008, before the crash, Gallup found that 32 percent but to what they believed [was] bad taste, scandal had high confidence in banks. That dropped to 22 per- mongering and general moral turpitude. In general, cent in 2009 and held at 23 percent in 2010 and 2011, the dispersion of the answers among the five proba- hitting an all-time low point of 21 percent in 2012. bly indicates that the popular rage against the ‘money In Gallup’s latest June 2013 question, 26 percent had changers’ that was nearly universal on March 4, 1933 a great deal or quite a lot of confidence in banks, the [Roosevelt was inaugurated on March 4 and declared highest level of strong confidence since 2008. Twenty- a National Bank Holiday soon after to deal with bank eight percent had very little or none. Gallup reported failures], and during the bank holiday thereafter was that of the 16 institutions they examined in 2013, con- given an effective catharsis during the investigations fidence in banks increased the most of any institution. of Messrs. Morgan, Mitchell, et al. and has dissipated Despite this latest response, it is premature to say banks by the present general confidence banks enjoy under are firmly out of the woodshed in the public mind. federal deposit insurance.2 It is interesting to note that between June 2008 and June 2009, confidence in a few of the institutions Gal- Several surveys from the 1950s asked Americans lup inquired about actually rose. Confidence ticked up whether government should nationalize the banks in the church or organized religion, the military, the (large majorities in the range of 75 percent said no). Supreme Court, and public schools. For other institu- In an Opinion Research Corporation poll from 1969, tions, it held steady. But views of banks slid, underscor- 65 percent said they had a favorable view of the bank- ing the point that the public saw Wall Street and banks ing industry (8 percent had an unfavorable view). In as uniquely responsible for the financial crisis (figure another question in the same poll, 63 percent said they 4). Perhaps surprisingly, only a few pollsters asked who knew little or nothing about it. was responsible for or caused the crisis. There was a lot But regular questions about our confidence in banks of blame to go around, but banks and Wall Street were did not appear until the 1970s. The National Opinion always prominent culprits. Research Center (NORC) began examining our con- Can confidence once lost be regained? The return fidence levels in the people “running banks and finan- of confidence in banks after the savings and loan cri- cial institutions” in 1975, and Gallup started asking sis shows that it can. But as described, it takes time. about our confidence in banks and banking periodi- The public does not easily trust powerful institutions. cally starting in 1979. That year, 60 percent told Gal- At this stage of the weak economic recovery, confidence lup they had a great deal or quite a lot of confidence in banks is returning very slowly.
6 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
Figure 4 Confidence in Banks
80%
70%
60% Great deal/Quite a lot
50% 45%
40% Some
30% 28%
Very little/None at all 26% 20%
10%
0% 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Source: Gallup, latest that of 2013.
Business, Much More Broadly was little objective change in environmental quality. They felt better about immigration, though once again, Have the negative feelings Americans have toward Wall there was little change in the situation. In the pollsters’ Street colored their perceptions of business as a whole? trends, confidence in many institutions reached highs Several pollsters provide regular soundings. Gallup asks during this time. about “big business,” Harris asks about “the people But after this feel-good period, confidence began to in charge of running major companies,” NORC asks fall. Attitudes toward business were declining before the about confidence in “people running major compa- 2008 crash. That decline began with the burst of the dot- nies,” the Pew Research Center asks whether people com bubble and the March–November 2001 recession. have a favorable or unfavorable opinion of “business Gauging what happened to business confidence after corporations,” and NBC News and the Wall Street Jour- the dot-com bubble burst is difficult. The public’s atten- nal ask about “large corporations.” tion quickly shifted from the recession to concern over All these polls show that confidence declined after the 9/11 terrorist attacks and America’s interventions the crash. But the data tell another story as well, one that abroad. The limited polling we have between March we have alluded to in our discussion of banks. To under- 2001 and September 2001 shows a drop in confidence stand that story, we need to go back to the very unusual for business. But after 9/11, views on institutions such public opinion climate around the turn of the century. as banks and financial firms rolled with the tide of patri- The economy was performing remarkably well in otism unleashed by those events, and that buoyed our the late 1990s and early 2000s, and Americans felt bet- confidence. That mood gave way to a generalized frus- ter than they had in a long time about many differ- tration as the wars in Afghanistan and Iraq wore on. ent things. In the polls we have mentioned, people felt But the data still have a clear trajectory. While we unusually positive about business and banks. But they are careful about pinpointing a single cause for changes also felt better about the environment, though there in public opinion, the decline of confidence in business
7 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
Figure 5 Confidence in Big Business
80%
70%
60%
50% Some 43% 40% Very little/None 30% 33%
22% 20%
10% Great deal/Quite a lot
0% 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Source: Gallup, latest that of 2013. coincided with the start of the 2001 recession, with In the NBC News/Wall Street Journal question, a brief pause after 9/11. Attitudes continued to slide 31 percent had a great deal or quite a lot of confidence downward over the course of the decade. The 2008 in “large corporations” in 1998. In July 2007 and in crash then pushed them even lower. The all-time-low late September 2008, 11 percent expressed strong confidence levels are not simply the result of the 2008 confidence. crash, in other words. They are also the result of several Where we have recent data, we see attitudes toward years of negative developments. business beginning to return to precrash levels. In Gal- In Gallup’s polls, those having a great deal or quite lup’s question about “big business,” confidence in 2013 a lot of confidence in “big business” was 30 percent in is where it was in 2004. In the 2012 Harris question on 1999. By 2002, it had dropped to 20 percent, which “people in charge of running major companies,” confi- is where it was in 2008. In 2009, confidence dropped dence is about where it was in 2007. to 16 percent, the low point of strong confidence (fig- Feelings toward “corporations” are also warming. In ure 5). its 2013 survey, Pew found that 55 percent had a favor- The picture is similar in the Harris polls. The num- able view of business corporations (39 percent unfavor- ber having a great deal of confidence in “the peo- able). In August 2011, when the public feared another ple running major companies” reached 28 percent in economic downturn, the responses were reversed: 52 2000, but by 2002 it was 16 percent. The financial percent had an unfavorable view and 38 percent a crash pushed it to a low of 11 percent in 2009. favorable one. Pew notes that favorable opinions have In Pew’s data, a remarkable 73 percent had a favor- increased by double digits “across all partisan and ideo- able opinion of business corporations in 1999. In April logical groups, with one exception: liberal Democrats.” 2008, 47 percent gave that response. The next time Pew With attitudes returning to precrash levels, it appears asked the question in 2011, confidence had dropped that the blame Americans directed toward Wall Street another 9 points to 38 percent. did not spread to the business community as a whole.
8 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
Figure 6 The Influence of Major Corporations
80% 75% 70% Would like to see major corporations have less influence
60%
50%
40% Keep as it is now
30%
20% More influence 15% 10% 10%
0% 2001 2002 2003 2004 2005 2006 2007 2008 20092010 20112012 2013
Source: Gallup, latest that of January 2013.
Size, Power, and Influence 86 percent said that “big companies” had too much power and influence in Washington. Eighty-one per- Americans have an innate skepticism of big, powerful cent said that was true of banks, 88 percent of political institutions. Historical trends from all the major poll- action committees, and 85 percent of political lobby- sters show that Americans have harbored doubts about ists. But only 4 percent gave that response about small big business, big government, and big labor since the businesses. The attitudes about the power and influ- questions were first asked. This skepticism has con- ence of big institutions like corporations and banks tributed to Wall Street’s past and present unpopularity were deeply ingrained before the financial crisis, and as well. responses did not change very much after the crash. NORC first asked its question about confidence Concentration of power is another concern. In in those running major companies in 1973. No more 1987, the first time Pew asked the question, 77 percent than 31 percent (in 1974 and 1984) have ever had a said too much power was concentrated in the hands of “great deal of confidence.” In Gallup’s question from a few big companies. In April 2012, 75 percent gave 1975, 34 percent said they had a great deal or quite that response. a lot of confidence in big business. This response has For a brief period in the early part of this century, never been higher. Looking at the Harris data from people were more satisfied with the size and influence 1971 on, 29 percent had a great deal of confidence in of large companies. The effects of the good economic those running major companies in 1973, and 28 per- times can be seen in two questions Gallup asked. In cent gave that response in 2000. In this 42-year trend, 2001, 48 percent said they were very or somewhat sat- these are the high points for confidence. isfied with the size and influence of major corporations. Size concerns Americans. People always give small By 2011, that had dropped to 29 percent, with a slight business high marks in the polls. The same cannot be recovery the last time Gallup asked the question in said of big business. In a Harris poll from April 2012, 2013 (35 percent).
9 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
The other Gallup question asked about whether business was the most threatening. major corporations should have more or less influence. In the post-Vietnam era, confidence in the mili- The question leaves unspecified where that influence tary has been high in comparison to Congress, busi- would be applied. No more than 10 percent have ever ness, and government. The military, unlike Congress wanted corporations to have more influence. But in and business, has a clearly defined mission that it car- 2001, a relatively low 52 percent said they wanted them ries out well. Scandals as varied as Tailhook in Sep- to have less (figure 6). That response was 75 percent in tember 1991 and Abu Ghraib in 2004 have very little 2013. When times were good at the turn of the cen- effect on positive attitudes toward the military. People tury, around 35 percent said their influence should be perceive that the military addresses its problems suc- kept about the same. But this period remains the excep- cessfully and moves on. Also, most people have a per- tion that proves the rule. sonal connection to the military, which may boost its Polls show the 2008 crash confirmed what many standing. Seventy-three percent in a 2013 Economist/ had believed before—that the concentration of power YouGov internet survey say they know someone who and influence in a few large companies can hurt the has served in the military, and another 10 percent say economy. The tough economic times provided a new they have served. Few Americans probably know any- context, but attitudes did not change much. Instead of one who works on Wall Street. shifting opinions, the crash cemented them. Confidence in the military did not diminish during the difficult wars in Iraq and Afghanistan. Confidence in Wall Street, by comparison, took a substantial hit Business Compared to Other Institutions after the crash and has barely recovered.
Looking at attitudes toward business in isolation is revealing, but it is hard to interpret what a loss of confi- Regulation Responses dence means without comparing business to other large institutions. Congress provides one good comparison. Given the current negative views of Wall Street and Both institutions have a multifaceted set of respon- mixed sentiment about business, one might expect the sibilities. In Gallup’s confidence questions from the public to be clamoring for greater federal regulation. mid-1970s to early 1980s, confidence in Congress was But polls show Americans have grown more skeptical almost always higher than confidence in big business. in the last five years of government regulation of busi- Since 2010, however, confidence in Congress has been ness. They still want the feds to crack down on Wall slightly lower than confidence in big business. Street and the financial institutions they see as responsi- Trust and confidence in the federal government ble for the crash. But on the whole, antiregulatory sen- has, like with Congress, been particularly low in recent timent is high. years. A 2012 survey by the Public Affairs Council Immediately after the events of mid-September asked people whether they had a favorable or unfavor- 2008, preferences shifted toward increased regula- able attitude about major companies and, separately, tion. In October 2008, 27 percent told the Los Ange- the federal government. In the survey, 67 percent had les Times and Bloomberg pollsters that there was too a favorable opinion of business (16 percent very favor- much regulation of business and industry. Forty-five able) while only 41 percent had a favorable opinion of percent said there was too little and only 14 percent the the federal government (9 percent very favorable). In right amount. But attitudes have since flipped. Gallup a Gallup question that was last updated in 2011, far last asked the identical question in September 2012. more people said the big government represented the Then, 47 percent said there is too much regulation and biggest threat to the country in the future (64 percent) 26 percent too little. Twenty-four percent said it was compared to big business (26 percent). Only 8 percent about right. said big labor represented the biggest threat. In Decem- Today, antiregulatory sentiment extends beyond a ber 2008 and March 2009, 31 and 32 percent said big preference for less regulation. On balance, most think
10 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
Figure 7 Views on Government Regulation
Government regulation of business is necessary 40% to protect public interest
Does more harm 52% than good
0% 10% 20% 30% 40% 50% 60%
Source: PSRA/Pew Research Center, February 2013 regulation actually harms business. Pew asks whether distance people feel from Wall Street probably contrib- government regulation of industry is necessary to pro- utes to public receptivity to greater regulation of the tect the public interest or does more harm than good. In financial sector. February 2012, 40 percent said it was necessary, while On three occasions in 2010, as Congress consid- 52 percent said it does more harm than good (figure 7). ered the Dodd-Frank legislation, CNN and Opinion The present antiregulatory mood has its limits. Peo- Research Corporation pollsters asked people about leg- ple want more oversight of financial firms and Wall islation that would “increase federal regulation over Street. While a plurality told Pew pollsters in February banks, Wall Street investors, and other financial institu- 2012 that there was too much regulation of small busi- tions.” In March 2010, 53 percent were in favor, in May ness, a plurality also said there was too little regulation 60 percent were, and in July 58 percent were. Around 4 of banks and financial institutions. Eighty-two per- in 10 or fewer were opposed on each occasion. cent agreed with Harris pollsters in 2012 that “recent We can see the strength of support for increased regu- events have shown that Wall Street should be subject to lation of financial institutions in the results of an August tougher regulations.” 2010 Gallup poll. In it, 61 percent said they approved At the time of the Enron and WorldCom scandals, of the increased government regulation of banks and people told pollsters that they wanted better enforce- financial institutions passed in the past two years, while ment of laws already on the books and not new laws. 37 percent disapproved. In the same poll, more people While there are no perfectly analogous questions about disapproved of the economic stimulus legislation than the 2008 crash, people wanted new protections to guard approved of it (52 to 43 percent). They also said they dis- against a future financial meltdown. As the Enron and approved of the government aid to banks and financial WorldCom scandals came to light, most people also institutions in danger of failing (61 percent), the health told pollsters that the behavior of executives at those care overhaul (56 percent), and government aid to auto- firms would not happen at their own workplaces. The makers in danger of going bankrupt (56 percent).
11 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
The deep concern people had about the safety of the cover a loss of $61.7 billion in late 2008.3 financial system can be seen in the results of a CBS/ Public reaction was harsh. Eighty-one percent told New York Times question asked four times beginning in ABC/Washington Post pollsters in March 2009 that April 2009. That month, 71 percent said the view that they were angry “about large bonuses being paid to “government should increase regulation of these insti- employees at companies that accepted government tutions [banks and financial institutions] now to pre- loans.” Eighteen percent were not angry. vent more financial crises from happening again in the Another poll from the time provides a different per- future” came closer to their own beliefs, while 23 per- spective. CBS asked specifically about the AIG bonuses cent chose “government should not increase regulation and whether they made people angry, bothered, or not of these institutions now because that will discourage bothered. The results show a high level of public anger, private investors and slow down economic growth.” but not as high as in the ABC/Post poll. Fifty percent While the intensity of these feelings had diminished by said they were angry. Thirty-eight percent said they were 2010, a majority still wanted greater regulation. In Feb- bothered by AIG’s actions, and 12 percent were not. ruary 2010, those responses were 56 and 36 percent, Either way, disapproval was strong. The responses respectively. In May of that year, they were 53 and 37 are remarkable because anger is not an emotion we see percent and in July, 57 and 35 percent. The preference often in polls. Although Americans are deeply dissatis- for a government watchdog role remains strong. fied with the way the federal government is perform- We should note here that we do not think the pub- ing, polling shows only around 20 to 25 percent say lic gives specific legislative advice. Most people did they are “angry” at Washington. The fact that over half not read the Dodd-Frank legislation or form opin- described their feelings toward AIG’s actions as angry ions about it. They speak in broad terms in the polls, shows how high frustration was. and in this situation, they felt that Wall Street’s actions Several pollsters surveyed people about what the gov- required a strong response from Washington. ernment should do. In a March–April 2009 Fox News Behind recent opinions on regulation of business poll, 56 percent of registered voters said the government lurks a pervasive mistrust of the federal government. should never be allowed to regulate the salaries of cor- Americans do not want to eliminate government reg- porate executives at American companies. But in the ulation, but they are not inclined to increase its role. next question in the poll, 64 percent said the federal They are reluctant to increase regulation of businesses government should be allowed to regulate the salaries of because they view business as instrumental to the corporate executives at American companies that take nation’s success and as an engine of growth. In an econ- taxpayer bailouts (figure 8). In a March 2009 Quinnip- omy that has been on its back for five years, Americans iac poll, 64 percent of registered voters were against the do not want to harm it further, so they find themselves government limiting “the amount of money that com- wanting to reduce regulations to help business grow. panies not taking federal funds pay their executives.” But they do not trust businesses enough to give them Thirty percent were in favor. These responses show that complete latitude, nor do they trust the government to Americans wanted to respond to what they saw as spe- regulate intelligently. No wonder most are pessimistic. cific bad behavior, not to punish across the board. By 2010, opinions were divided. In a January 2010 ABC/Washington Post poll, 50 percent thought the Bonuses federal government “should try to limit the size of the bonuses these banks can pay to their employees.” For- In March of 2009, news stories broke about how some ty-nine percent thought “the government should stay businesses that received money from the TARP pro- out of it now that its loans have been repaid.” We have gram were giving large bonuses to their employees. not seen much polling on this issue since. AIG disclosed in March 2009 that it was going to pay The bonus controversy also illustrates that pub- approximately $165 million in bonuses to its financial lic support for government regulation has its limits. It services division after receiving government funds to took place at the height of the public’s anti–Wall Street
12 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
Figure 8 Government Regulation of Salaries of Corporate Executives
80% Should 70% regulate Should not 60% regulate
50% Should regulate 40% Should not regulate 30% 65% 56% 20% 32% 38% 10%
0% Salaries of executives at Salaries of corporate executives companies that took bailouts
Source: Fox News, March 2009. feelings. But even here, their calls for action were largely percent agree with the statement. Even in April 2009, directed at a specific group of businesses. In many peo- at a time of high anxiety about the economy and the ple’s judgment, these companies committed wrongs financial system, 76 percent agreed. Perhaps because of that called for government intervention beyond what the stable sentiment on this question, the changes in the public would normally tolerate. philosophical views on business since the recession have been more subtle than severe. Views about the free enterprise system remain pos- Views about Free Enterprise and Capitalism itive. Eighty-nine percent in November 2012 Gallup poll had a positive image of the words “free enterprise.” The current negativity toward Wall Street and other Capitalism was not as highly regarded, though. Sixty- financial institutions has not produced an indictment one percent had a positive image, and 31 percent had of the free enterprise system. The crash may have a negative one. It is difficult to determine exactly why strengthened some misgivings people have about it, respondents felt differently about the two terms. The particularly when it comes to inequality. But even here term “capitalism” may bring to mind some of the weak- the evidence is weak. nesses of the modern market economy. Most see business as an important engine of Ameri- One of those is economic inequality. Harris began can success. Twenty-five percent completely agreed and asking people in 1972 whether “the rich get richer and 46 percent mostly agreed in a 2012 Pew poll that the the poor poorer,” and 68 percent agreed. The pollster strength of this country today is mostly based on the has asked the question many times since then, and usu- success of American business (figure 9). Twenty-five ally around 75 percent give this response. Pew asks the percent disagreed. That question has been asked 16 question a little differently. They ask people to agree times since 1987, with very little change in responses with the statement “today it’s really true that the rich over the past quarter century. Usually, around 75 just get richer while the poor get poorer.” They asked
13 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
Figure 9 The Strength of This Country Today Is Mostly Based on the Success of American Business
90% Agree 80%
70% 71%
60%
50%
40%
30% Disagree 25% 20%
10%
0% 1987 1988 1989 1990 1992 1993 1994 1995 1996 1997 1999 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011
Source: PSRA/Pew Research Center, April 2012. it for the first time in 1987, and 74 percent agreed. In We have argued elsewhere that the belief that oppor- April 2009, 71 percent agreed. In April 2012, 74 per- tunity is present in America tends to act as a solvent for cent did. persistent concerns about inequality.4 It does not elim- On 12 occasions since 1984, Gallup has asked peo- inate those concerns, but it makes the gaps people see ple whether the distribution of money and wealth in between themselves and the rich less potent politically. this country today is fair or whether the money and This explains why people are usually unsympathetic to wealth in this country should be more evenly distrib- government involvement in redistribution of wealth. In uted among a larger percentage of the people. While a question asked since 1978 by the National Opinion the results have fluctuated somewhat, in all the polls, Research Center at the University of Chicago, people between 56 and 68 percent have said wealth should were asked to place themselves on a seven-point scale be more evenly distributed. In a question asked before with point 1 meaning that government ought to reduce the financial crisis in April 2008, 68 percent gave that income differences between the rich and poor and point response. Perhaps surprisingly, this declined to 58 per- 7 meaning that government should not concern itself cent in October 2008 and 59 percent in March 2009. with reducing income differences. Most people place In April 2013, 59 percent gave that response. themselves in the middle (points 3–5) with, in recent National Journal in May 2011 asked if the free- years, around 25 percent saying government should and market economy “creates more opportunities than around 20 percent saying government should not. problems because it provides the most effective way In another question from Gallup, people were asked to create economic growth and allow people to rise as whether “our government should or should not redis- far as their talent and hard work will take them.” Six- tribute wealth by heavy taxes on the rich.” In 2012, 52 ty-two percent agreed. Thirty-two percent agreed with percent said government should do this but 45 percent the opposite statement that “left to itself, the free mar- said it should not. In October 2008, those responses ket creates more problems than opportunities because it were 46 and 50 percent, respectively. creates much inequality and leaves too many people in Americans generally accept inequality as long as it poverty.” The positives still outweigh the negatives. is not seen as excessive and everyone gets a fair shake.
14 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISE
But if those at the top are seen as gaining at the expense inequality—faith in the free-market system remains of others and harming the economy, these latent con- intact. Americans seem more critical of how some busi- cerns can come to the surface. The events in 2008 pro- nesses currently operate than of the operations of the vided kindling to light a fire under the Occupy Wall free-market economy. Street movement. But it could not be sustained, and the popularity of the movement quickly faded. In the initial stages of the protests, the focus was largely on Conclusion Wall Street and its transgressions. But as the movement expanded its activity, its target shifted from Wall Street The persistent lack of trust in Wall Street five years after specifically to the free enterprise system more generally. the crash suggests that many Americans have deep mis- We suspect this tactic partly explains the group’s decline. givings about the operations of the financial sector. The One area where Americans have a specific criticism consensus is that many of these firms are not ethical or of the free market is the profit motive. But even here, concerned about the well-being of the country. polls suggest that people are more critical of how they Lost trust is regained slowly. The perceived irrespon- believe businesses over emphasize profits than the profit sibility displayed during 2008 and 2009 gave many a motive itself. Thirty-eight percent told Pew in April reason to eye these institutions critically. It will likely be 2012 that “business corporations generally strike a fair some time before people feel confident again. balance between making profits and serving the public In the meantime, Americans are cautiously optimis- interests.” Fifty-eight percent thought they did not. In tic when it comes to other aspects of business in Amer- another question in the poll, 61 percent thought busi- ica. One constant during the past five years has been ness corporations made too much profit. Only 35 per- the American people’s commitment to a strong free cent said corporations made a fair and reasonable profit. enterprise system. The bad behavior and questionable Part of the dissatisfaction with corporate profits actions of some have challenged that commitment, but comes from false assumptions. When asked by Reason- it has remained firm. The strong support that system Rupe pollsters in May 2013 what percentage profit of has will provide a solid foundation for the challenges each dollar of sales the average manufacturer makes that will surely come in the next five years and beyond. after taxes, the mean percentage was 34 percent. The question was asked regularly in the 1970s and 1980s by the Opinion Research Corporation, and the responses Notes then were similar. The reality is much different. Estimates vary, but 1. “Goldman Sachs Salaries,” Glassdoor.com, last modi- the actual percent hovers around 5 to 7 cents on the fied August 11, 2013, www.glassdoor.com/Salary/Goldman- dollar.5 The inflated estimates of profit margins partly Sachs-Salaries-E2800.htm. demonstrate a lack of knowledge. However, the gap 2. “The Fortune Quarterly Survey: III,” Fortune, January between profit reality and estimates demonstrate just 1936, 145. how wealthy and greedy average Americans think cor- 3. Helen Cooper, “Obama Orders Treasury Chief to Try to porations are. Block A.I.G. Bonuses,” New York Times, March 16, 2009. Despite these factors—loss of confidence, wide- 4. Everett Carll Ladd and Karlyn Bowman, Attitudes spread perception of greed, dissatisfaction with profit Toward Economic Inequality (Washington, DC: AEI Press, margins, concern over the morality of Wall Street, fear 1998). over the continued ability of financial firms to derail 5. Bureau of Economic Analysis, US Department of Com- the economy, lack of trust in government to properly merce, “Corporate Profits: First Quarter 2013 (Preliminary regulate the economy, worry over the concentration of Estimate),” May 2013. financial power, and concern over growing economic
15 Appendix: Major Trends and Data
September 2008
Q: What do you think is the most important problem facing this country today?
Gallup The Economy Unemployment/Jobs Top Response Jan. 2007 4% 5% Situation in Iraq Feb. 2007 7 4 Situation in Iraq Mar. 2007 7 3 Situation in Iraq Apr. 2007 8 5 Situation in Iraq May 2007 6 4 Situation in Iraq Jun. 2007 6 4 Situation in Iraq Jul. 2007 6 3 Situation in Iraq Aug. 2007 8 4 Situation in Iraq Sep. 2007 11 4 Situation in Iraq Oct. 2007 9 5 Situation in Iraq Nov. 2007 14 4 Situation in Iraq Dec. 2007 13 3 Situation in Iraq Jan. 2008 18 5 Situation in Iraq Feb. 2008 34 7 The economy Mar. 2008 35 5 The economy Apr. 2008 41 6 The economy May 2008 35 5 The economy Jun. 2008 36 5 The economy Jul. 2008 35 5 The economy Aug. 2008 38 6 The economy Sep. 2008 36 5 The economy Oct. 2008 42 2 The economy Nov. 2008 58 8 The economy Dec. 2008 55 12 The economy Jan. 2009 57 11 The economy Feb. 2009 51 14 The economy Mar. 2009 51 16 The economy Apr. 2009 48 17 The economy May 2009 47 14 The economy Jun. 2009 41 14 The economy Jul. 2009 38 19 The economy Aug. 2009 33 14 The economy Sept. 2009 29 15 The economy Oct. 2009 26 17 The economy
16 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Nov. 2009 31 20 The economy Dec. 2009 26 16 The economy Jan. 2010 25 22 The economy Feb. 2010 31 31 The economy & Unemployment/Jobs Mar. 2010 24 31 The economy Apr. 2010 23 30 The economy May 2010 26 22 The economy Jun. 2010 28 21 The economy Jul. 2010 31 22 The economy Aug. 2010 30 28 The economy Sep. 2010 33 28 The economy Oct. 2010 32 24 The economy Nov. 2010 31 33 Unemployment/Jobs Dec. 2010 30 24 The economy Jan. 2011 26 29 Unemployment/Jobs Feb. 2011 29 35 Unemployment/Jobs Mar. 2011 28 26 The economy Apr. 2011 26 19 The economy May 2011 35 22 The economy Jun. 2011 36 24 The economy Jul. 2011 31 27 The economy Aug. 2011 31 29 The economy Sep. 2011 28 39 Unemployment/Jobs Oct. 2011 31 32 Unemployment/Jobs Nov. 2011 30 36 Unemployment/Jobs Dec. 2011 26 25 The economy Jan. 2012 31 26 The economy Feb. 2012 31 30 The economy Mar. 2012 31 26 The economy Apr. 2012 32 25 The economy May 2012 31 22 The economy Jun. 2012 31 25 The economy Jul. 2012 29 28 The economy Aug. 2012 31 23 The economy Sep. 2012 26 26 The economy & Unemployment/Jobs Oct. 2012 37 26 The economy Nov. 2012 30 20 The economy Dec. 2012 23 17 The economy Jan. 2013 21 16 The economy Feb. 2013 25 19 The economy Mar. 2013 24 16 The economy Apr. 2013 24 18 The economy Jul. 2013 23 19 The economy
17 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: As I read a list of some stories covered by news organizations this past week, please tell me if you happened to follow each news story very closely, fairly closely, not too closely, or not at all closely.
October 2008—Pew Research Center Top Ten New Interest Index Stories (1986–2008) Following very closely Challenger disaster (1996) 80% 9/11 terrorist attacks (2001) 78 San Francisco earthquake (2005) 73 Impact of Hurricane Katrina 73 High gas prices (2005) 73 Economic news (2008) 70 Rodney King verdict (1992) 70 Crash of TWA flight 800 (1996) 69 Little girl in the well (1987) 69 Columbine high school shooting (1999) 68
Q: Have the events (trouble in the United States economy) of the last two weeks made you, personally, feel ______or not?
September 30, 2008—Gallup Yes, felt No, have not felt Angry 53% 46%
Afraid 41% 58%
Q: Regardless of how likely you think it is, how much does the possibility of the US economy going into a depression worry you—a great deal, a moderate amount, not much, or not at all?
December 2008—Gallup/USA Today A great deal 40% Moderate amount 39 Not much 14 Not at all 7
Q: How would you rate the condition of the national economy these days? Is it very good, fairly good, fairly bad, or very bad?
February 2009—CBS News Very good * Fairly good 5% Fairly bad 31 Very bad 63
Q: Has the US economy turned the corner on the current crisis, is the worst yet to come, or have things stabilized but not yet begun to improve?
February 2009—Ipsos Public Affairs/McClatchy Turned the corner 7% Worse yet to come 54 Stabilized, but not yet begun to improve 35
18 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Next, we are interested in how people’s financial situation may have changed. Would you say that you are financially better off now than you were a year ago, or are you financially worse off now?
September 27, 2008—Gallup/USA Today Better off 26% Worse off 55 Same 19
Q: Now thinking about how your own situation has been affected by the events affecting the economy over the past month. How much do you think your own financial situation has been harmed by the events of the last month—a great deal, a moderate amount, not much, or not at all?
October 12, 2008—Gallup/USA Today Great deal 29% Moderate amount 37 Not much 22 Not at all 11
Q: Now, I’d like you to think about the events (trouble in the United States economy) of the last two weeks and any future problems that might result from them. How much do you think your own finan- cial situation will be harmed in the long run—a great deal, a moderate amount, not much, or not at all?
September 30, 2008—Gallup/USA Today Great deal 28% Moderate amount 41 Not much 22 Not at all 7 No opinion 2
Q: Have you personally tried to reduce your household and personal spending because of concern about the economy?
February 2009—Fox News/Opinion Dynamics Yes 79% No 21
19 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Confidence in Wall Street Q: Do you, personally, or jointly with a spouse, have any money invested in the stock market right now—either in an individual stock, a stock mutual fund, or in a self-directed 401-K or IRA?
April 2013—Gallup Yes 52% No 47
Q: Please indicate if you know personally someone who is a millionaire.
April 2013—Economist/YouGov Yes, and that person is me 3% Yes, I know someone like this 34 No, don’t know anyone like this 63
Q: Please indicate if you know personally anyone who lost his or her job in the financial crisis.
April 2013—Economist/YouGov Yes, and that person is me 7% Yes, I know someone like this 51 No, don’t know anyone like this 42
Q: Again, just your best guess: How much does a family of four need to have total annual income to be considered wealthy in your area?
July 2012—PSRA/Pew Research Center Under $50K 6% $50K–$99K 11 $100K–$249K 39 $250 –$999K 20 $1 million or more 10 Median $150,000
Q: Do you think the United States benefits from having a class of rich people, or not? Yes, benefits No, does not benefit May 1990 Gallup 62% 32% May 2012 Gallup 63 34
20 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: As far as people in charge of running major companies are concerned, would you say you have a great deal of confidence, only some confidence, or hardly any confidence at all in them?
Harris Interactive People in charge of running major companies Great deal Only some Hardly any 1966 55% 35% 5% 1967 47 32 6 1971 27 50 15 1972 27 44 21 1973 28 52 16 1974 16 48 33 1975 20 48 25 1976 19 51 23 1977 20 51 23 1978 23 55 17 1979 17 51 27 1980 16 54 27 1981 16 60 22 1982 17 60 20 1983 18 61 19 1984 21 58 18 1985 18 63 18 1986 17 60 20 1987 22 61 14 1988 16 60 23 1989 17 60 23 1990 15 68 16 1991 16 63 18 1992 11 63 24 1993 17 65 16 1994 20 59 18 1995 23 60 16 1996 21 59 18 1997 21 57 19 1998 21 58 17 1999 23 59 15 2000 28 56 13 2001 20 63 13 2002 16 56 24 2002 13 51 31 2003 – – – 2004 12 55 30 2005 17 59 24 2006 13 62 25 2007 16 58 25 2008 14 53 29 2009 11 52 35 2010 15 56 27 2011 13 56 28 2012 15 55 25
21 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
People in charge of running small businesses Great deal Only some Hardly any 2005 47% 47% 6% 2006 45 47 6 2007 54 42 3 2008 47 45 5 2009 48 43 6 2010 50 42 5 2011 50 39 6 2012 50 38 8
People in charge of running Wall Street Great deal Only some Hardly any 1989 8% 56% 31% 1990 21 - - 1991 14 - - 1992 13 - - 1993 13 - - 1994 15 - - 1995 13 - - 1996 17 58 20 1997 17 - - 1998 18 - - 1999 30 - - 2000 30 46 11 2001 23 51 16 2002 19 54 18 2003 12 50 31 2004 17 50 23 2005 15 59 23 2006 15 56 24 2007 17 51 24 2008 11 52 27 2009 4 33 57 2010 8 43 45 2011 7 40 46 2012 7 39 48
22 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: I’m going to read you the names of some institutions in American society. Please tell me how much confidence you, yourself, have in each one: a great deal, quite a lot, some, very little, or none at all?
NBC/Wall Street Journal Large corporations Great deal Quite a lot Some Very little None at all Jul. 1998 13% 18% 42% 22% 2% Dec. 2000 9 17 42 22 8 Jan. 2002 8 14 44 23 9 Jul. 2002 4 8 37 32 7 Jul. 2007 5 6 37 30 19 Sep. 2008 2 9 33 33 21 Jan. 2009 6 7 31 35 20 Aug. 2010 5 7 42 26 16 Jan. 2011 6 7 42 29 15 May 2012^ 7 10 37 26 18
Small business Great deal Quite a lot Some Very little None at all Dec. 2000 31% 28% 27% 8% 3% Jul. 2002 30 30 31 5 2 Jul. 2007 26 28 31 9 3 Jan. 2009 28 30 30 7 3 Aug. 2010 34 19 31 8 4
Wall Street Great deal Quite a lot Some Very little None at all Jan. 2009 6% 7% 25% 31% 28% Jan. 2011 4 6 41 32 14 May 2012 4 5 37 26 25
The financial industry Great deal Quite a lot Some Very little None at all Dec. 2000 11% 25% 45% 13% 4% Jul. 2002 5 10 49 27 8 Jul. 2007 5 11 48 21 9 Sep. 2008 5 5 33 37 18 Jan. 2009 4 6 28 34 26 Aug. 2010 4 6 33 33 20 Jan. 2011 4 5 39 35 16 May 2012^ 6 6 35 29 23 Jun. 2013 4 7 39 31 17
The high-tech industry Great deal Quite a lot Some Very little None at all Dec. 2000 26% 28% 31% 9% 2% Jul. 2002 19 22 38 11 5 Jan. 2009 21 30 30 8 5 Jan. 2011 28 24 34 8 2 May 2012^ 22 25 41 7 2
Note: *Question asked only of registered voters. ^Asked of a half sample.
23 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Overall, how much do you trust Wall Street bankers and brokers to do what is best for the economy—a great deal, somewhat, a little, or not at all? A great deal Somewhat A little Not at all Feb. 1990 CNN/TIME/Yankelovich 4% 30% 33% 30% Mar. 1994 CNN/TIME/Yankelovich 5 28 32 30 Oct. 2011 CNN/ORC 3 20 22 54
Greed and Wall Street
Q: Please say if you tend to agree or disagree with the following statements about Wall Street.
Harris Interactive Wall Street is absolutely essential because it provides the money businesses must have for investment. Agree Disagree 1996 69% 25% 1997 69 27 1998 73 24 1999 69 23 2000 72 21 2002 66 26 2003 62 24 2006 71 25 2009 62 32 2010 59 34 2011 62 34 2012 62 34
Most people on Wall Street would be willing to break the law if they believed they could make a lot of money and get away with it. Agree Disagree 1996 64% 33% 1997 56 40 1998 56 41 1999 60 34 2000 60 33 2002 61 34 2003 54 34 2006 63 35 2009 71 27 2010 66 29 2011 67 31 2012 70 27
24 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Wall Street only cares about money and absolutely nothing else. Agree Disagree 1996 57% 39% 1997 48 48 1998 57 39 1999 56 37 2000 57 36 2002 56 40 2003 53 35 2006 59 38
Wall Street is dominated by greed and selfishness. Agree Disagree 1996 57% 39% 1997 48 48 1998 57 39 1999 56 37 2000 57 36 2002 56 40 2003 53 35 2006 59 38
Most successful people on Wall Street deserve to make the kind of money they earn. Agree Disagree 1996 40% 55% 1997 51 44 1998 48 47 1999 45 46 2000 42 50 2002 36 58 2003 37 51 2006 40 56 2009 30 66 2010 29 65 2011 31 66 2012 32 64
In general, what is good for Wall Street is good for the country. Agree Disagree 1997 39% 57% 1998 43 53 1999 42 51 2000 41 52 2002 40 55 2003 39 47 2006 37 60 2009 37 59 2010 33 61 2011 31 64 2012 30 67
25 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
In general, people on Wall Street are as honest and moral as other people. Agree Disagree 1996 43% 52% 1997 51 45 1998 49 47 1999 39 51 2000 35 56 2002 35 57 2003 35 50 2006 41 54 2009 26 70 2010 31 64 2011 26 70 2012 28 68
Recent events have shown that Wall Street should be subject to tougher regulations. Agree Disagree 2009 87% 10% 2010 82 14 2011 83 14 2012 82 15
Wall Street firms should only pay bonuses when they are doing well and making good profits. Agree Disagree 2009 78% 20% 2010 75 21 2011 75 21 2012 78 19
Q: Do you think that executives at large Wall Street banks share the same fundamental American values as you, or do these managers have a different set of values?
May–June 2012—Atlantic/Aspen Share the same fundamental values 17% Have a different set of values 79
Q: How common do you think corruption is in banks and financial institutions—is it widespread or is it limited to a few institutions?
July 2012—CBS/NYT Widespread 49% Limited 47
26 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: For each statement, please tell me if you completely agree with it, mostly agree with it, mostly dis- agree with it, or completely disagree with it.
April 2009—PSRA/Pew Wall Street makes an important contribution to the American economy. Completely agree 17% Mostly agree 46 Mostly disagree 20 Completely disagree 8
Wall Street only cares about making money for itself. Completely agree 28% Mostly agree 39 Mostly disagree 21 Completely disagree 6
27 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Banks, More Broadly
Q: Do you believe that any of the following abuse their power?
January 1936—Roper/Fortune Press 42% Bankers 38 Pulpit 26 Veterans 23 Radio 22
Q: How favorable or unfavorable are your opinions or impressions of the banking industry?
July 1969—Opinion Research Corporation Very or mostly favorable 65% Half and half 20 Very or mostly unfavorable 8
Q: I am going to name some institutions in this country. As far as the people running these institutions are concerned, would you say you have a great deal of confidence, only some confidence, or hardly any confidence at all in them? NORC Banks and financial institutions A great deal Only some Hardly any 1975 32% 57% 11% 1976 40 50 10 1977 43 49 9 1978 31 57 12 1980 33 51 16 1982 26 57 17 1983 23 61 16 1984 31 58 11 1986 21 62 17 1987 28 58 14 1988 28 59 14 1989 19 61 20 1990 17 60 23 1991 12 53 35 1993 15 58 27 1994 18 62 20 1996 25 58 17 1998 27 57 16 2000 30 56 14 2002 23 59 18 2004 30 57 13 2006 30 57 13 2008 19 61 20 2010 11 48 42
28 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Now I’m going to read you a list of institutions in American society. Please tell me how much confi- dence you, yourself, have in each one—a great deal, quite a lot, some, or very little?
Gallup Big business Great deal/ Very little/ Quite a lot Some None 1973 26% 36% 29% 1975 34 36 25 1977 33 34 27 1979 32 37 28 1980 29 39 28 1981 24 35 36 1983 28 39 28 1985 32 41 24 1986 28 40 28 1988 25 42 30 1990 25 40 31 1991 22 42 32 1993 23 44 31 1994 26 42 30 1995 21 50 26 1996 24 46 28 1997 28 43 27 1998 30 43 25 1999 30 44 25 2000 29 45 25 2001 28 44 26 2002 20 47 32 2003 22 44 36 2004 24 42 33 2005 22 45 31 2006 18 40 40 2007 18 39 41 2008 20 43 36 2009 16 42 41 2010 19 42 38 2011 19 41 39 2012 21 40 38 2013 22 43 33
29 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Small business Great deal/ Very little/ Quite a lot Some None (vol) 1997* 63% 30% 5% 1998* 57 34 9 2007 59 32 7 2008 60 31 7 2009 67 26 7 2010 66 26 6 2011 64 26 8 2012 63 29 6 2013 65 27 7
Banks Great deal/ Very little/ Quite a lot Some None 1979# 60% 29% 9% 1981# 51 32 17 1983# 51 34 13 1985 51 36 13 1986 49 37 13 1988 49 38 12 1990 36 40 23 1991 32 46 25 1993 38 42 20 1994* 35 46 17 1995* 43 42 13 1996* 44 41 14 1997* 41 43 16 1998* 41 43 15 1999* 43 40 16 2000 46 41 12 2001* 44 41 14 2002* 47 39 13 2003* 50 31 11 2004 53 36 10 2005 49 39 12 2006 49 39 10 2007 41 44 14 2008 32 45 22 2009 22 49 29 2010 23 45 30 2011 23 40 36 2012 21 42 35 2013 26 45 28
Note: *Source is Gallup/CNN/USA Today. # Question wording read, “Banking,” with other slight differences.
30 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Would you say your overall opinion of business corporations is very favorable, mostly favorable, mostly unfavorable, or very unfavorable?
PSRA/Pew Research Center Business corporations Very Mostly Mostly Very favorable favorable unfavorable unfavorable Jun. 1985 8% 50% 24% 7% Jan. 1988 6 53 27 5 Nov. 1991 8 57 22 6 Jul. 1994 8 62 19 5 Oct. 1995 6 54 29 7 Feb. 1996* 9 50 24 10 Jun. 1996* 10 52 25 6 May 1997* 9 50 21 7 Jun. 1997* 8 61 18 7 Aug.1997* 7 63 19 6 Sep. 1999 8 65 19 3 Mar. 2001 9 56 19 6 Jul. 2001+ 9 50 21 6 Mar. 2002 10 52 23 6 Jul. 2005 9 40 29 11 Oct. 2005 8 37 29 16 Jan. 2007 9 48 22 8 Apr. 2008 10 37 30 15 Aug. 2011 7 31 31 21 Jun. 2013 11 44 11 28
Note: *Question wording began, “I’d like your opinion of some people and organizations . . .” +Question wording began, “I’d like your opinion of some groups and organizations in the news . . . ?”
31 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: I’m going to name some institutions in this country. As far as the people running these institutions are concerned, would you say you have a great deal of confidence, only some confidence, or hardly any confidence at all in them?
National Opinion Research Center People running major companies Great deal Only some Hardly any 1973 29% 53% 11% 1974 31 51 14 1975 19 54 21 1976 22 51 22 1977 27 56 12 1978 22 58 16 1979 – – – 1980 27 53 14 1981 – – – 1982 23 58 14 1983 24 59 13 1984 31 57 9 1985 – – – 1986 24 62 10 1987 30 58 8 1988 25 60 11 1989 24 60 10 1990 25 61 11 1991 20 62 13 1992 – – – 1993 21 63 12 1994 25 61 10 1995 – – – 1996 23 59 14 1997 – – – 1999 26 57 13 2000 – – – 2001 28 57 11 2002 – – – 2003 17 63 18 2004 19 64 18 2006 18 64 18 2008 16 66 16 2010 13 60 24 2012 12 60 27
32 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Now I’m going to read you a list of institutions in this country. For each one, please tell me if you are extremely confident, very confident, somewhat confident, not too confident, or not confident at all in the people who are running each institution.
AP-GfK/Roper Extremely/ Somewhat Not too/ Very confident confident Not confident Banks and financial institutions Aug. 2010 6% 42% 52% Aug. 2011 10 42 47 Aug. 2012 13 38 48 Major companies Aug. 2010 7% 50% 42% Aug. 2011 12 52 35 Aug. 2012 16 50 30 Small and local business Aug. 2010 39% 49% 11% Aug. 2011 40 51 8 Aug. 2012 49 41 8
Q: Do you think _____ has/have too much or too little power and influence in Washington? Too much Too little About right Big Companies Feb. 2009 85% 10% 2% Feb. 2010 87 9 2 Apr. 2011 88 9 1 Apr. 2012 85 9 3
Banks and Financial Institutions Feb. 2010 83% 9% 3% Apr. 2011 85 10 1 Apr. 2012 81 11 4
PACs Feb. 2009 85% 9% 2% Feb. 2010 83 11 1 Apr. 2011 87 7 2 Apr. 2012 88 7 3
Political Lobbyists Feb. 2009 81% 14% 1% Feb. 2010 83 11 1 Apr. 2011 84 12 1 Apr. 2012 85 10 2
News Media Feb. 2009 75% 18% 3% Feb. 2010 66 23 4 Apr. 2011 72 20 2 Apr. 2012 73 19 5
33 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Entertainment and Sports Celebrities Feb. 2009 70% 20% 4% Feb. 2010 61 24 5 Apr. 2011 62 27 4 Apr. 2012 67 20 7
TV and Radio Talk Shows Feb. 2009 59% 29% 5% Feb. 2010 55 33 5 Apr. 2011 53 36 3 Apr. 2012 65 24 7
Trade Associations Feb.2009 55% 30% 2% Feb. 2010 57 24 3 Apr. 2011 61 24 1 Apr. 2012 57 27 6
Labor Unions Feb. 2009 54% 40% 3% Feb. 2010 57 34 3 Apr. 2011 55 40 2 Apr. 2012 56 35 5
Opinion Polls Feb. 2009 38% 51% 5% Feb. 2010 31 55 4 Apr. 2011 37 53 3 Apr. 2012 40 47 9
Churches and Religious Groups Feb. 2009 34% 57% 4% Feb. 2010 35 54 3 Apr. 2011 42 49 3 Apr. 2012 41 48 8
Racial Minorities Feb. 2009 33% 53% 6% Feb. 2010 32 52 6 Apr. 2011 35 53 5 Apr. 2012 32 56 7
Nonprofit Organizations Feb. 2009 19% 71% 3% Feb. 2010 21 67 3 Apr. 2011 27 65 2 Apr. 2012 24 64 6
34 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Public Opinion Feb. 2009 18% 76% 3% Feb. 2010 13 82 2 Apr. 2011 13 82 2 Apr. 2012 14 78 5
Small Business Feb. 2009 5% 90% 3% Feb. 2010 4 93 1 Apr. 2011 5 91 1 Apr. 2012 4 90 4
Q: For each statement, please tell me if you completely agree with it, mostly agree with it, mostly dis- agree with it, or completely disagree with it.
PSRA/Pew Research Center There is too much power concentrated in the hands of a few big companies. Completely Mostly Mostly Completely agree agree disagree disagree Nov. 1991 41% 39% 14% 3% Jun. 1992 30 47 18 3 May 1993 26 46 22 3 Jul. 1994 31 42 22 4 Nov. 1997 31 42 20 5 Sep. 1999 31 43 20 3 Aug. 2002 33 44 16 4 Aug. 2003 40 37 15 5 Dec. 2006– Jan. 2007 38 38 17 4 Apr. 2009 32 45 16 5 Apr. 2012 39 37 16 5
Q: Next, I’m going to read some aspects of life in America today. For each one, please say whether you are—very satisfied, somewhat satisfied, somewhat dissatisfied, or very dissatisfied. How about . . .?
Gallup The size and influence of major corporations Very Somewhat Somewhat Very satisfied satisfied dissatisfied dissatisfied Jan. 2001 7% 41% 31% 17% Jan. 2002 7 43 30 17 Jan. 2003 6 37 33 21 Jan. 2004 7 31 34 27 Jan. 2005 7 31 32 27 Jan. 2006 6 29 30 32 Jan. 2007 8 31 28 30 Jan. 2008 6 29 28 33 Jan. 2011 5 24 31 36 Jan. 2012 4 26 28 36 Jan. 2013 7 28 30 31
35 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Would you like to see major corporations have more influence in this nation, less influence, or keep their influence as it is now?
Gallup More influence Keep as it is now Less influence Jan. 2001 10% 36% 52% Jan. 2002 8 37 53 Jan. 2003 8 30 60 Jan. 2004 9 30 60 Jan. 2005 8 30 60 Jan. 2006 7 26 65 Jan. 2007 10 27 61 Jan. 2008 7 24 68 Jan. 2011 12 24 62 Jan. 2013 10 15 75
36 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Business Compared to Other Institutions
Q: How about _____? Would you say your overall opinion of ____ is very, somewhat, not too, or not at all favorable?
June–July 2012—Public Affairs Council Very Somewhat Not too Not at all favorable favorable favorable favorable Major companies 16% 51% 18% 11% Small businesses 53 35 4 4 The federal government in Washington 9 32 27 28
Q: In your opinion which of the following will be the biggest threat to the country in the future—big business, big labor, or big government?
Gallup Big business Big labor Big government Sep. 1954 16% 46% 16% Feb. 1965 17 29 35 Dec. 1966 14 21 48 Jul. 1968 12 26 46 Nov. 1969 19 28 33 Jan. 1977 23 26 38 Sep. 1978 19 19 47 May 1979 28 17 43 Sep. 1981 22 22 46 May 1983 19 18 51 Jun. 1985 22 19 50 Aug. 1995 24 9 64 Dec. 1998 24 7 64 Aug. 1999 24 8 65 Oct. 2000 22 7 65 Jul. 2002 38 10 47 Nov. 2003 29 9 57 Dec. 2004 27 11 57 Dec. 2005 27 8 61 Dec. 2006 26 9 61 Dec. 2008 31 11 53 Mar. 2009 32 10 55 Nov. 2011 26 8 64
Note: Question wording in 1954 was “One problem is keeping any group in the United States from getting too big and powerful. Where do you feel this problem is greatest today—with big businesses or big labor unions or big government?” The 1954 survey was conducted by ORC.
Q: Please indicate if you know personally anyone who has served in the military.
April 2013—Economist/YouGov Yes, and that person is me 10% Yes, I know someone like this 73 No, don’t know anyone like this 17
37 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Regulation Response
Q: In general, do you think there is too much, too little, or about the right amount of government regu- lation of business and industry? Too much Right amount Too little Mar. 1981 LA Times 54% 14% 18% Apr. 1991 LA Times 27 36 29 Mar. 1993 Gallup 37 30 28 Sep. 2001 Gallup 41 38 17 Feb. 2002 Gallup 28 39 30 Jun. 2002 Gallup 32 30 33 Jul. 2002 Harris Interactive 28 27 37 Sep. 2002 Gallup 35 31 31 Sep. 2003 Gallup 37 35 25 Sep. 2004 Gallup 37 24 34 Sep. 2005 Gallup 34 23 40 Sep. 2006 Gallup 36 30 28 Sep. 2007 Gallup 38 33 26 Sep. (early) 2008 Gallup 38 31 27 Sep. (late) 2008 CNN/ORC 38 19 42 Oct. 2008 LA Times/Bloomberg 27 14 45 Dec. 2008 CNN/ORC 39 20 39 Aug.–Sep. 2009 Gallup 45 27 24 Dec. 2009* CNN/ORC 50 18 30 Sep. 2010 Gallup 49 21 27 Sep. 2011 Gallup 50 23 24 Sep. 2012 Gallup 47 24 26
Note: *Asked of a half sample.
Q: I’m going to read you some pairs of statements that will help us understand how you feel about a number of things. As I read each pair, tell me whether the first statement or the second statement comes closer to you own views—even if neither is exactly right. The first pair is government regulation of business is necessary to protect the public interest, or government regulation of business usually does more harm than good.
PSRA/Pew Research Center Government regulation of business is necessary to protect public interest Does more harm than good Jul. 1994 41% 54% Oct. 1994 38 55 Apr. 1995 43 51 Oct. 1995 45 50 Oct. 1996 45 46 Aug. 1999 48 44 Feb. 2002 50 41 Jul. 2002 54 36 Dec. 2004 49 41 Oct. 2008 50 38 Dec. 2008 47 43 Feb. 2011 47 45 Feb. 2012 40 52
38 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: What do you think about regulation in each of the following areas? First, is there too much, too little, or the right amount of federal regulation when it comes to . . . ?
February 2012—PSRA/Pew Research Center Too much Too little Right amount Small business 49% 21% 23% Large corporations 31 43 19 Banks and financial institutions 30 43 20 The health insurance industry 37 40 18 The oil and gas industry 36 44 14
Q: Please say if you tend to agree or disagree with the following statements about Wall Street.
Harris Interactive Recent events have shown that Wall Street should be subject to tougher regulations. Agree Disagree 2009 87% 10% 2010 82 14 2011 83 14 2012 82 15
Q: As you may know, Congress is considering legislation that would increase federal regulation over banks, Wall Street investors, and other financial institutions. Based on what you have heard or read about this, do you favor or oppose this legislation?
CNN/Opinion Research Corporation Mar. 2010 May 2010 Jul. 2010 Favor legislation to increase regulation of banks, Wall Street investors, and other financial institutions 53% 60% 58% Oppose 43 38 38
Q: Now, thinking back on some of the major pieces of legislation Congress has passed in the last two years, would you say you approve or disapprove of . . . ?
August 2010—Gallup/USA Today Increased government regulation of banks and major financial institutions? Approve 61% Disapprove 37
The economic stimulus package? Approve 43% Disapprove 52
Government aid to U.S. automakers that were in danger of going bankrupt? Approve 43% Disapprove 56
The healthcare overhaul? Approve 39% Disapprove 56
39 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Government aid to banks and major financial institutions that were in danger of failing? Approve 37% Disapprove 61
Q: When it comes to government regulation of banks and financial institutions, which comes closer to your opinion: The government should increase regulations on these institutions now to help prevent more financial crises from happening again in the future, or the government should not increase regula- tions on these institutions now, because that will discourage private investors and slow down economic growth.
CBS/New York Times Should increase regulations Should not Apr. 2009 71% 23% Feb. 2010 56 36 May 2010 53 37 Jul. 2010 57 35
Bonuses
Q: Would you describe yourself as angry or not angry about . . . large bonuses being paid to employees at companies that have accepted government loans?
March 2009—ABC News/Washington Post Angry 81% Not angry 18
Q: Which best describes your feelings about AIG paying bonuses to some of its executives: are you angry, bothered but not angry, or are you not bothered by this?
March 2009—CBS News Angry 50% Bothered 38 Not bothered 12
Q: Do you think the federal government should be allowed to regulate the salaries of corporate execu- tives at American companies that take taxpayer bailouts?
March 2009—Fox News Should be allowed to regulate salaries of executives at companies that took bailouts 64% Should not 32
Q: Do you think the federal government should ever be allowed to regulate the salaries of corporate executives at American companies?
March 2009—Fox News Should be allowed to regulate salaries of corporate executives 38% Should not 56
40 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Do you think the government should limit the amount of money that companies not taking federal funds pay their executives?
March 2009—Quinnipiac Government should limit the amount of money that companies not taking federal funds pay their executives 30% Should not 64
Q: Do you think the government should limit the amount of money that companies that are taking federal funds pay their executives?
March 2009—Quinnipiac Government should limit the amount of money that companies that are taking federal funds pay their executives 81% Should not 16
Q: As you may know, several banks that received rescue loans from the government have now paid back those loans. Do you think the federal government should try to limit the size of the bonuses these banks can pay to their top employees, or do you think the government should stay out of it now that its loans have been repaid?
January 2010—ABC News/Washington Post Government should try to limit the size of bonuses these banks (that have paid the loans back) can pay their top employees 50% Government should stay out of it 49
41 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Views about Free Enterprise and Capitalism
Q: I am going to read you a series of questions that will help us understand how you feel about a num- ber of things. For each statement, please tell me if you completely agree with it, mostly agree with it, mostly disagree with it, or completely disagree . . .
PSRA/Pew Research Center The strength of this country today is mostly based on the success of American business. Completely Mostly Mostly Completely agree agree disagree disagree May 1987 16% 60% 16% 3% May 1988 25 54 14 3 Feb. 1989 23 54 14 4 May 1990 20 57 14 3 Nov. 1991 29 47 15 6 Jun. 1992 24 54 15 5 Jul. 1994 26 52 15 5 Nov. 1997 22 54 16 5 Sep. 1999 23 53 14 5 Feb. 2002 25 51 16 4 Aug. 2002 22 50 18 6 Aug. 2003 26 49 15 6 Dec.2006– Jan. 2007 19 53 18 6 Apr. 2009 26 50 15 5 Sep. 2011 26 47 17 8 Apr. 2012 25 46 19 6
Q: Just off the top of your head, would you say you have a positive or negative image of each of the following? How about free enterprise?
November 2012—Gallup Have a positive view 89% Negative 7
Q: Just off the top of your head, would you say you have a positive or negative image of each of the following. How about capitalism?
November 2012—Gallup Have a positive view 61% Negative 31
42 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Now I want to read you some things some people have told us they have felt from time to time. Do you feel or not feel that the rich get richer and the poor get poorer?
Harris Yes 1972 67% 1977 77 1985 79 1990 82 1991 83 1992 83 1993 81 1994 78 1995 79 1996 76 2001 69 2002 72 2003 69 2004 68 2005 75 2006 72 2007 73 2008 71 2009 66 2010 68 2012 74
Q: Do you completely agree, mostly agree, mostly disagree, or completely disagree?: Today it’s really true that the rich just get richer while the poor get poorer.
April 2012—Pew Research Center Completely Mostly Mostly Completely agree agree disagree disagree May 1987 31% 43% 19% 3% May 1988 34 42 18 3 Feb. 1989 40 38 15 4 May 1990 38 40 16 3 Nov. 1991 45 35 13 5 Jun. 1992 38 40 16 4 Jul. 1994 33 38 20 7 Nov. 1997 34 36 22 6 Sept. 1999 33 39 20 6 Feb. 2002 37 31 20 9 Aug. 2002 28 37 26 7 Aug. 2003 34 34 22 7 Jan. 2007 37 36 18 7 Apr. 2009 36 35 18 8
43 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Do you feel that the distribution of money and wealth in this country today is fair, or do you feel that the money and wealth in this country should be more evenly distributed among a larger percentage of the people? Distribution Should be more is fair evenly distributed 1984 Gallup 31% 60% 1985 LAT 28 61 1987 Gallup 27 66 1990 Gallup 28 66 1996 Gallup 33 62 1998 Gallup 31 63 2000 Gallup 38 56 2003 Gallup 31 63 2007 Gallup 29 66 Apr. 2008 Gallup 27 68 Oct. 2008 Gallup 37 58 Mar. 2009 Gallup 35 59 Apr. 2011 Gallup 35 57
Q: And, thinking some more about economy here in the United States, which of the following state- ments do you agree with more?
May 2011—Allstate/National Journal Left to itself the free market economy creates more opportunities than problems because it provides the most effective way to create economic growth and allow people to rise as far as their talent and hard work will take them. 62% Left to itself the free market economy creates more problems than opportunities because it creates too much inequality and leaves too many people in poverty. 32
44 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: Some people think that the government in Washington ought to reduce the income differences between the rich and the poor, perhaps by raising the taxes of wealthy families or by giving income assistance to the poor. Here is a card with a scale from 1 to 7. Think of a score of 1 as meaning that the government ought to reduce the income differences between rich and poor, and a score of 7 meaning that the government should not concern itself with reducing income differences. What score between 1 and 7 comes closest to the way you feel? NORC Gov’t should reduce Gov’t shouldn’t reduce income differences income differences ------Points------1 2 3 4 5 6 7 1973 36% 12% 10% 11% 6% 7% 15% 1978 19 11 17 21 11 8 12 1980 17 9 16 20 12 7 16 1983 20 11 16 17 11 8 14 1984 21 12 15 17 13 8 12 1986 23 9 17 21 11 6 12 1987 19 9 17 21 13 6 14 1988 20 10 18 20 12 8 11 1989 18 13 19 20 11 7 10 1990 21 12 18 21 9 6 10 1991 20 12 17 20 12 7 9 1993 17 12 19 18 12 8 12 1994 14 9 16 21 15 8 15 1996 17 10 16 21 12 8 12 1998 15 10 17 21 11 8 16 2000 16 12 16 20 14 9 13 2004 20 8 18 19 13 8 14 2006 20 9 17 22 13 7 11 2008 24 8 17 19 13 7 12 2010 18 8 16 18 16 7 17 2012 24 10 15 18 11 6 15
Q: Do you think that our government should or should not redistribute wealth by heavy taxes on the rich? Should Should not Jun. 1939 Roper/Fortune 35% 54% Prosperous 17 76 Upper middle class 28 64 Lower middle class 34 57 Poor 46 40 Apr.–May 1998 Gallup 45 51 Apr. 2007 Gallup 49 47 Apr. 2008 Gallup 51 43 Oct. 2008 Gallup 46 50 Mar. 2009 Gallup 50 46 Apr. 2011 Gallup 47 49
45 FIVE YEARS AFTER THE CRASH: WHAT AMERICANS THINK ABOUT WALL STREET, BANKS, BUSINESS, AND FREE ENTERPRISES
Q: For each statement, please tell me if you completely agree with it, mostly agree with it, mostly dis- agree with it, or completely disagree with it.
PSRA/Pew Research Center Business corporations generally strike a fair balance between making profits and serving the public interest. Completely Mostly Mostly Completely agree agree disagree disagree May 1987 4% 39% 38% 10% May 1988 6 36 39 13 Feb. 1989 5 33 44 12 May 1990 5 38 37 13 Nov. 1991 8 32 38 19 Jun. 1992 5 35 42 14 Jul. 1994 7 38 38 15 Nov. 1997 7 38 40 12 Sep. 1999 7 38 37 13 Feb. 2002 7 33 38 16 Aug. 2002 7 34 38 17 Aug. 2003 6 32 35 22 Dec. 2006– Jan. 2007 6 32 39 19 Apr. 2009 6 31 39 19 Sep. 2011 9 32 31 21 Apr. 2012 7 31 37 21
Q: What do you consider to be a reasonable profit for the average manufacturer after taxes? Mean percentage 1976 ORC 25% 1979 ORC 26 1981 ORC 26 1983 ORC 30 2013 Reason-Rupe 30
Note: The Reason-Rupe interviewers split their sample and asked about the average manufacturer in one question and the average com- pany in the other. The mean percentage for the average company was 35 percent.
Q: Just as a rough guess, what percent profit on each dollar of sales do you think the average manufac- turer makes after taxes? Mean percentage 1971 ORC 28% 1973 ORC 28 1975 ORC 33 1976 ORC 29 1979 ORC 32 1981 ORC 31 1983 ORC 37 1986 ORC 32 1987 ORC 34 2013 Reason-Rupe 34
Note: The Reason-Rupe interviewers split their sample and asked about the average manufacturer in one question and the average com- pany in the other. The mean percentage for the average company was 36 percent.
46