Steve Quayle News Alerts

July 29, 2002
By Laurence McQuillan, USA TODAY

WASHINGTON — The turmoil on Wall Street and corporate corruption scandals are eroding public confidence in President Bush's handling of the economy and improving Democratic chances of gaining seats in this year's congressional elections, a USA TODAY/CNN/Gallup poll released Monday shows.

The shift in public attitudes creates a new dynamic as Republicans and Democrats battle for control of Congress. Americans, consumed by concern over terrorism since Sept. 11, are turning attention to traditional pocketbook issues.

The findings continue to show strong backing for Bush, who holds a 69% overall approval rating in the survey conducted Friday through Sunday. But approval of his handling of the economy, has dropped since early July, while disapproval has jumped to 43% from 36%.

The shift in thinking on the administration's handling of the economy coincides with a change in attitudes toward which party would do a better job in Congress setting the right economic course. In the survey, 42% favored Democrats while 37% backed Republicans. In May, Republicans led Democrats 43-34%.

"Overall it looks like Democrats may be gaining on the issue of the economy," said Frank Newport, editor in chief of the Gallup Poll. "There are signs it is affecting people's perceptions of the parties and that's not good for the Republicans."

GOP strategists worry about political damage from market unrest, which Democrats see as a weakness to exploit in the November election when all 435 House seats are at stake and one-third of the Senate.

"People are confused and a bit uncomfortable right now," said Stephen Hess of the Brookings Institution. "Democrats are making the economy an issue and clearly Americans are listening."

When registered voters participating in the survey were asked which political party's candidate they would vote for if elections were held now, 47% favored a Democrat and 40% a Republican.

Bush has been promoting the overall health of the economy in recent weeks, trying to remind Americans the nation is emerging from recession. He hosts a White House ceremony Tuesday to sign legislation that makes sweeping changes in accounting practices and imposes new penalties for corporate fraud.

In South Carolina on Monday, Bush said low interest rates, low inflation, sound monetary policy and sound fiscal policy mean that "the foundation for growth is strong in America." On Monday, the Dow surged more than 400 points.

White House spokesman Scott McClellan, reacting to the survey's findings, said Bush would continue to seek ways to improve the economy and generate new jobs and "urge Congress to act on additional proposals he has outlined to strengthen our economy."

Results in the survey are based on telephone interviews with 1,004 adults. The margin of error +/-3 percentage points.

http://www.usatoday.com/news/washington/2002-07-29-dems-econ_x.htm