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1
THE ECONOMIC SITUATION FACING
WORKING FAMILIES:
AMERICANS' ATTITUDES TOWARD
THE ECONOMY, LIVING STANDARDS,
AND CORPORATE BEHAVIOR
A SUMMARY OF RESEARCH CONDUCTED
FOR THE AFL-CIO
BY PETER D. HART RESEARCH ASSOCIATES
AND THE MELLMAN GROUP
2
INTRODUCTION
This report presents the findings of public opinion research conducted on behalf
of the AFL-CIO by Peter D. Hart Research Associates and the Mellman Group.
The research was designed to study public perceptions and attitudes regarding
the economy, living standards, and corporate behavior.
The first stage of the research consisted of 10 focus groups, including
three among union members and seven among nonunion working people.
These sessions were held in St. Louis, MO; Cleveland, OH; Philadelphia, PA;
Birmingham, AL; and, Los Angeles, CA.
The focus groups were followed by an in-depth national telephone survey
among a representative sample of 1,201 adults from the general public, for
which the interviews were conducted between April 19 and 22, 1996. A parallel
survey was conducted concurrently among a representative sample of 811 AFL-
CIO members.
This report also incorporates the findings from a second national survey
conducted for the AFL-CIO between May 14 and 16, 1996, among 802
registered voters. This latter survey looked more closely at the public's attitudes
toward corporate behavior and the role of the government in promoting higher
standards of responsibility in the way corporations treat their employees.
Peter D. Hart Research Associates
The Mellman Group
3
A.
VIEWING THE ECONOMY:
SHRINKING EXPECTATIONS AND CONCERN FOR THE FUTURE
Americans offer a lukewarm assessment when they evaluate the nation's
economy today. In describing economic conditions for the country as a whole,
just 10% of the public says these are good economic times, while nearly four
times as many (37%) feel these are hard times economically. The most common
response is to describe the current economic situation as representing "average
times" (51%), though, as we shall see, many of these Americans answer from a
perspective of declining expectations about what now constitutes the economic
norm in America.
Indeed, Americans are much more likely to give credence to negative
characterizations of today's economy than they are to accept upbeat
assessments of the economic situation.
In a question that asked people to rate the accuracy of 11 descriptions of
the economy today, the statements that are perceived as being most accurate all
spoke to the hardships and obstacles workers and their families face today. The
two statements least credited as being true, on the other hand, are ones
describing the economic situation in positive terms: "there are more
opportunities than ever for people to succeed by starting their own businesses,"
and "the economy is in a difficult transition, but more competition and new
technologies will eventually create a better economic future."
Peter D. Hart Research Associates
The Mellman Group
4
When asked about their own personal economic and financial situation,
Americans are far from optimistic. Less than half (43%) of the public rates the
economic situation for themselves and their family as either excellent or good;
on the other hand, 37% describe their personal economic situation as just fair,
and 20% say their economic situation is either not so good or poor.
Voters' Personal Economic Situation
57%
43%
Excellent/good
Not so good/poor
Just fair
Not surprisingly, these ratings are closely related to household income:
68% of nonretired respondents with an income of over $50,000 rate their
economic situation positively, but economic satisfaction drops to 42% among
those with an income of between $35,000 and $50,000, and falls further to 21%
among those with an income of under $35,000.
On another key measurement of economic satisfaction, half of all
Americans say that their family's income is falling behind the cost of living,
Peter D. Hart Research Associates
The Mellman Group
5
compared to just 11% who say their family's income is going up faster than the
cost of living. In a telling result, a substantial 43% of those who describe these
as "average" economic times also feel that their family is falling behind
economically. A declining real income-or, at best, one that holds steady-now
constitutes normal economic times in the minds of many Americans. Such a
result would have been unimaginable a generation ago, and is testimony to
working people's shrinking expectations.
Half See Their Income Falling Behind
Compared To Cost Of Living
50%
38%
11%
Going up
Staying even
Failing
faster than
W ith cost
behind cost
cost of living
of living
of living
For a substantial majority of Americans, the economic outlook for the
future is marked primarily by doubt and trepidation. Overall, 58% of American
adults say they are more worried and concerned about being able to achieve
their economic and financial goals in the next five years, while only 33% say
they are more hopeful and confident on this front. Degree of education has a
strong impact on these feelings. Negative responses outnumber positive ones
Peter D. Hart Research Associates
The Mellman Group
6
by a margin of better than two to one among working people who have not
graduated from college, while there is an even balance of positive and negative
responses among college graduates.
Voters Not Optimistic
About Economic Future
All voters
33%
58%
High school/less
26%
education
66%
Some college
31%
64%
College graduates
45%
48%
Hopeful/confident about achieving financial goals
Worried/concerned about achieving financial goals
Americans draw dramatic distinctions among various groups when rating
who is doing well in today's economy and who is not. The clear winners, in the
public's view, are the top corporate managers and the large corporations they
run: 93% say the top corporate managers are doing very or fairly well, and 81%
say that large corporations are doing very or fairly well. The other group of
winners in the current economy, in the estimation of 78% of the public, is
"stockholders and investors."
Peter D. Hart Research Associates
The Mellman Group
7
Other groups, however, are much less likely to be seen as doing well.
Less than half (41%) of the public offers a positive assessment of how the
middle class is doing, while 42% say the middle class is just getting by and 13%
think it is not doing well at all. Just 38% feel that older workers are doing very or
fairly well today, and Americans are even more downbeat about the situation for
younger workers who are just starting out (19% very or fairly well, 42% just
getting by, 34% not doing well at all).
Who's Doing Well In Today's Economy?
Voters See Haves And Have-Nots
Top corporate
93%
management
81%
Large corporations
Stockholders/
78%
investors
Middle class
41%
Older workers
38%
Small businesses
26%
Working families
20%
Doing very well in
today's economy
Younger workers
19%
Doing fairty well
We shall see momentarily that Americans frequently see the country's
economic problems through the prism of pressures on the family. In this context,
we note that just one in five Americans feel that working families generally are
doing well in today's economy; 61% say that working families are just getting by
today, and 18% think they are not doing well at all.
Peter D. Hart Research Associates
The Mellman Group
8
B.
TOP CONCERNS:
FAMILY STRESS, LACK OF JOB SECURITY, WAGES NOT KEEPING UP
1.
The Pressures on Families
Americans view the country's economic problems in terms of basic values, as
well as in pocketbook terms-both in describing the symptoms and in diagnosing
the causes. Indeed, Americans say by 45% to 31% that they are more
concerned about moral problems and the decline of values today than about
economic problems and the financial pressures on the average working family.
But on this question, 22% of adults volunteer that both views are equally
important, and the focus group discussions clearly show that Americans'
concerns about values and their economic concerns are frequently two sides of
the same coin.
The intimate connection between economics and values is readily
apparent in the public's perception of the difficulties facing working families
today. In fact, when respondents are asked to rate the accuracy of 13
descriptions of the economy, the most widely endorsed portrayal of what's
going on deals with the pressures on families. Fully 56% of Americans
overall, including 62% of all women, rate the statement, "many families are
under tremendous stress, because both parents have to work in order to make
ends meet," as a perfect description of the current economic scene (a rating of
"10" on a ten-point scale).
Peter D. Hart Research Associates
The Mellman Group
9
Public's Assessment Of The Economy
% saying each is a perfect description
Best Descriptions
Both parents must work
56%
No job security:
53%
downsize, layoff, merger
No job security:
50%
some take job for less $
U.S. workers need raise
50%
Worst Descriptions
13%
New business opptys
Better economic future
11%
Comments from focus group participants underline the problems parents
face in raising families in today's economic circumstances.
"It is a two-family income. Both parents have to work to make ends
meet these days, and you are out there, and it is a social issue, it is
an economic issue, and it is hard."
Woman, Los Angeles
"Out of balance is true. It is hard to bring home a decent paycheck
to have a family and spend enough time with your family."
Woman, St. Louis
"When you come home at seven or eight o'clock, you don't have
quality time. And your children are left alone and raised by
somebody else. / think that is a tremendous problem."
Woman, Los Angeles
"I seem burdened with a lot of debt. As / said, my wife would love
to be home with the kids. She works, basically, because she has to
work."
Man, Philadelphia
Peter D. Hart Research Associates
The Mellman Group
10
"It is very hard. You try to go and do a good job, and in my
industry, it is high stress. And then you feel like a whirlwind
/
have two kids, two different day cares, and literally, a good portion
of my income goes to making sure that they have proper day care,
and then you go home and you do it all over."
Woman, St. Louis
When asked about different ways of improving the economic situation for
people like themselves, 72% of adults say that "reducing stress on working
families with policies like flexible hours and affordable day care" would be very
effective. This is a particularly high priority among lower- and middle-income
workers.
2.
The Lack of Secure Jobs
Increasingly, Americans are coming to the view that the rules of the game have
changed in our economy in ways that leave few jobs secure, even for the most
productive and hard-working employees. Two statements on this subject are
given a high degree of credence by the public.
First, 53% believe it is completely accurate to say, "Nobody's job is
secure today; downsizing, layoffs, and mergers can cost anyone their job, no
matter how good a job they have done for their company." This statement is
perceived to be true of the economy today by respondents across the range of
occupational groups, and among Americans of all educational backgrounds.
Second, half of all adults say it is perfectly true that "nobody's job is
secure today; no matter how good a job you do for your company, there is
Peter D. Hart Research Associates
The Mellman Group
11
always someone else waiting to take your job for less pay." This view of the
economy is particularly salient among lower-income workers and those with less
educational attainment.
The issue of job insecurity has special power today, because Americans
believe that it affects everyone-even people who have worked hard, played by
the rules, and done a good job. When given a choice between two statements in
this regard, just 37% of the public is inclined to believe that "if you get a good
education and work hard today, you can really do well and get ahead." A
majority of 55% agree, instead, with a more downbeat view: "working hard isn't
enough anymore, because companies aren't loyal to their employees."
The Public And The American Dream
55%
Working hard
isn't enough.
because
37%
companies
aren't loyal to
With good
workers
education &
hard work,
you can get
ahead today
Sixty percent of women agree that working hard isn't enough to assure security
anymore, while men take this side of the argument by 50% to 42%. Six in ten
working people who have not graduated from college say that working hard isn't
Peter D. Hart Research Associates
The Mellman Group
12
enough any more, but even among college graduates, four in nine share this
point of view.
3.
American Workers Need a Raise
We already have noted that half of all Americans say their family's income has
failed to keep up with the cost of living. It should not be surprising, then, that
there is widespread concurrence with the statement, "American workers need a
raise," as an accurate description of today's economy. Fully half of all
Americans rate this statement as being perfectly accurate (a "10" on a ten-point
scale). People under age 35 and workers with a family income of under $35,000
give a higher rating to this statement than to any other description of the current
economic situation, but the statement that "American workers need a raise" has
currency across a wide variety of demographic and economic subgroups
(including those who say they are more concerned about moral problems than
about economic pressure).
In the focus group discussions, participants frequently use their inability to
save and make ends meet as the best measuring rod of an economy that is not
working for them.
"I consider myself to be middle income, but on that scale, what /
consider to be middle income cannot buy a middle-income house. /
cannot afford a middle-income automobile."
Man, Birmingham
Peter D. Hart Research Associates
The Mellman Group
13
"I'm making probably more money than / have ever made, but still,
it's to the extent where most of the money is committed for the
house, or this or that. It's not at a stage where you are making
enough money to be starting to put things away."
Man, Philadelphia
"I just wanted to say that sometimes it takes just one person's
salary to pay the mortgage, and that is just to try to have a roof
over your head to call your own A friend of mine went to buy a
new car, and it was $21,700, and / said my loan was $21,000 to
buy my house. / couldn't fathom $21,000 to buy a car. / am still
driving a '64 El Camino."
Woman, Los Angeles
In more personal terms, the most frequent concern that Americans
express about their own job is the unwillingness of their employers to raise
wages, even in good times. When asked how well each of 13 positive attributes
describes their own employer, American workers give their employers the lowest
grades when it comes to, "raising wages when profits increase." Forty-two
percent give their employers generally positive marks on this score, but 44% do
not.
It probably goes without saying that Americans believe employers should
raise wages when companies are doing well: three-quarters rate this as a very
important thing for an employer to do.
Peter D. Hart Research Associates
The Mellman Group
14
What Makes Americans Most Angry?
Makes me extremely angry
Makes me very angry
Most work hard/get less
61%
while rich get richer
Average CEO makes
58%
100x what workers do
Even profitable corps
53%
downsizing/laying off
Income up for rich/
40%
down for rest of us
US execs earn 2x what
36%
German/Japanese do
Purchase power up for
30%
rich/down for rest of us
It also is important to note that the growing disparity in incomes is what
makes Americans angriest about the economy today. Sixty-one percent say they
are very or extremely angry about a situation in which "most Americans are
working harder and getting less for it, while the wealthiest Americans just keep
getting richer and richer." Fifty-eight percent also express a very high level of
anger in response to the fact that "30 years ago, the average CEO made 41
times as much as an average manufacturing worker; but today, the average
CEO makes more than 100 times what the average worker makes." This anger
flows not just from people's sense of being squeezed financially, but also
because they believe the basic values of fairness are being violated in today's
economy.
Peter D. Hart Research Associates
The Mellman Group
15
C.
THE CAUSES OF OUR ECONOMIC PROBLEMS:
CORPORATE GREED, DECLINING VALUES, SPECIAL INTEREST GOVERNMENT
1.
Corporate Greed
The prevailing view in some quarters is that the problems described in the
preceding section are the inevitable and unavoidable consequence of a new
global economy that puts a premium on competition and high skill levels. This,
however, is not the view of most Americans.
Americans readily acknowledge the reality of economic change and the
necessity of adjusting to it. Americans also believe, though, that in many cases
our economy is responding to this change in the worst possible way, not the
best. This is particularly true in the case of American corporations and their top
management, who are widely seen by the public as taking unfair and selfish
advantage of today's economic circumstances, to the detriment of everyone
else.
Corporate greed is widely seen as a significant cause of the nation's
economic problems. In fact, 70% rate "corporations have become too greedy"
as being very (53%) or fairly (17%) responsible for America's current economic
ills-making it the most highly rated item of a dozen factors tested in our
research.
Peter D. Hart Research Associates
The Mellman Group
16
Where The Public Lays Blame
Top Five Of 12 Factors
% saying each is very responsible
for U.S. economic problems
Corporate greed
53%
Too much tax
44%
on working people
People too materialistic
41%
Decline in values
40%
Lack of investment
39%
in education/training
* Only 27% say "excessive gov't regulation of business"
is very responsible.
Downsizing is broadly perceived by Americans as an expression and
symbol of corporate greed, rather than as an exercise in economic necessity.
When asked to say which reason is the better explanation when businesses
eliminate jobs or downsize, just 28% of adults say that American corporations
are doing what they need to to compete and survive in a global economy. More
than twice that proportion (59%) say instead that when companies downsize, it is
because they are choosing to boost short-term profits, stock prices, and
executives' salaries at the expense of their employees.
Peter D. Hart Research Associates
The Mellman Group
17
Public's Take On Downsizing
Neither/
not sure
Companies boosting
Both
7%
short-term profits, stock
6%
prices, executive
salaries at workers'
expense
59%
28%
Companies doing
what's needed to
compete/survive in
global economy
This is the dominant view among virtually all elements of the public-
Republicans as well as Democrats, college-educated people along with those
who have not gone beyond high school. Even among people in managerial
positions, a slight plurality say that businesses eliminate jobs to feather their
own nest, not to compete in the global economy (44% to 40%).
The issue of downsizing and its connection with executive compensation
is the subject of frequent comment in the focus group sessions.
"To give themselves [CEOs] a $30,000 raise, they're going to get
rid of a $30,000 a year worker. Congratulations! There's your
raise, everybody's unemployed, and everybody's happy.
Man, Birmingham
"It kills me when / see a CEO who makes ten million dollars a year
and then blows out 100,000 workers."
Man, Philadelphia
Peter D. Hart Research Associates
The Mellman Group
18
"When you laid off people in the olden times it was because of a
decrease in productivity. Now with the downsizing, they are laying
off people and raising executive pay."
Man, Birmingham
Lest there be any doubt, Americans do not view layoffs by profitable
companies in benign terms. More than half say that "even corporations with
record profits and stock prices downsizing and laying off productive workers"
makes them very or extremely angry about the current economic situation.
These attitudes have created something of a pendulum swing in
Americans' relative sympathies toward labor and management. When asked
which side they generally favor when they hear about a dispute between
management and workers, Americans choose the workers' side by 54% to 13%.
When asked about disputes between labor unions and management, Americans
today side more with unions by a 20-point margin-up from just an eight-point
margin at the end of 1993.
2.
Declining Values
Many Americans believe that the nation's economic problems are the product of
declining values in the country. This view is expressed sometimes in terms of an
excessive materialism in our society: 61% rate "people having gotten too
materialistic and expecting too much" as an important factor in explaining what
has gone wrong with the economy.
Peter D. Hart Research Associates
The Mellman Group
19
Even more often, though, Americans focus on a decline in the basic
values of loyalty and fairness. Two-thirds of all adults say that the erosion of
these core values is very or fairly responsible for the economic problems facing
the country. The weakening of loyalty as a characteristic of the American
workplace is often described by focus group participants as a central feature of
the unraveling of the rules in American economic life.
"Loyalty was one of the great standards of corporate America, and
is no longer."
Man, Philadelphia
"Business used to take care of you, and you would take care of
business Now the world's not like it used to be. It's going down."
Man, Birmingham
"It used to be that companies were more loyal to the employees
than they are now. Now they just let you go."
Woman, St. Louis
"I just think that big business doesn't care about the little people
anymore. They'd rather fill their pockets."
Man, Cleveland
An extraordinary 83% of all Americans agree with the statement that
"average working families have less economic security today, because
corporations have become too greedy and care more about profits than about
being fair and loyal to their employees"-including 59% who strongly agree.
Peter D. Hart Research Associates
The Mellman Group
20
Voters' View Of Corporations
83%
"Average working families have
Agree somewhat
less economic security today,
because corporations have
become too greedy & care more
about profits than being fair &
Agree strongly
loyal to employees."
15%
Disagree
And in rating the importance of various changes for improving the economy,
three-quarters of the public puts a high priority on "restoring the basic values of
loyalty, respect, and responsibility to the workplace, so companies that do well
share that success with their employees and don't abandon those whose hard
work helped the company succeed."
Americans also place a very high premium on honoring the value of work
and having policies that make sure that everyone who wants to work can get a
job. This emphasis on the value of work is a key element in the deep support for
raising the minimum wage among Americans who have no direct personal stake
in the matter.
Peter D. Hart Research Associates
The Mellman Group
21
3.
Special Interest Government
Only a minority of Americans have a favorable view of the federal government
today. Overall, 25% express positive feelings toward the federal government,
28% are neutral, and a plurality of 45% feel negative toward the federal
government.
Many Americans believe that the government bears a large share of the
blame for the country's economic problems-through sins of both commission
and omission. Sixty-eight percent of all Americans rate "government taking too
much in taxes from working people" as being very or fairly responsible for
economic problems today. Additionally, 58% blame government for failing to
invest sufficiently in education and training; among people under age 35,
inadequate investment in education and training ranks along with corporate
greed at the very top of their concerns about the economy.
While anxiety about the tax burden on working people is palpable and
significant, Americans are less certain about the effectiveness of cutting taxes as
a cure for our economic problems. In a recent NBC News/Wall Street Journal
survey, 45% of voters said that enacting a general tax cut for individuals would
be a very or fairly effective way to improve the economy-substantially fewer
than the proportions who responded positively on this scale to "making sure that
people can get health insurance when they change jobs or have a preexisting
conditions" (70% very or fairly effective) or "encouraging companies to share
more profits with employees" (62% very or fairly effective).
Peter D. Hart Research Associates
The Mellman Group
22
Indeed, spending and taxes are not the most important criticisms
Americans have about the federal government. A different critique, related to
the government's responsiveness to wealthy special interests at the expense of
average working families, has far more power and credibility.
Respondents were read two criticisms of the federal government's
economic policies and asked to say which one they consider to be the bigger
problem with the government today. Thirty-five percent of adults give more
weight to the criticism that "government spends too much, taxes too much, and
interferes too much in things better left to individuals." A plurality of 48%,
however, say that the bigger problem today is that "government is too concerned
with what big corporations and the wealthy special interests want, and does not
do enough to help average working people." While Republican voters are
inclined to emphasize spending, taxes, and government interference as the key
problems with government, independents-as well as Democrats-say that
special interest dominance of government is the bigger problem.
Peter D. Hart Research Associates
The Mellman Group
23
Where Voters Fault Government
Gov't too concerned
Neither/
not sure
with corporations/
Both
6%
wealthy special
11%
interests; doesn't do
enough for average
working families
Gov't spends too
48%
much, taxes too
much, interferes
too much
35%
This is a view heard frequently in the focus group sessions.
"Well, you've got to realize this, even with our government, the
wealthy run our government."
Man, Birmingham
"I am of the opinion that maybe the corporate lobbyists, or the back
room politics, has a lot do with this type of thing [economic
problems] happening. People with big money, they have the power
to have lobbyists in Washington."
Man, Cleveland
"The corporations have the ear of Congress to change things over
periods of time."
Man, Philadelphia
"It was the big businesses that made these contributions to
these senators, and then sent their lobbyists and said pass this bill,
SO we can start getting cheap steel from China or Japan to make
our cars, SO we don't have to pay this labor over at U.S. Steel. So
it gets back to money. That's why / don't really get into the
government thing."
Man, Birmingham
Peter D. Hart Research Associates
The Mellman Group
24
Given these attitudes, it is easy to understand why Americans draw a
clear connection between political reform and economic change. Indeed, 78% of
all Americans say that a very effective way to improve the economic situation for
people like them is to "take back control of our government, by adopting political
reforms that make politicians accountable to working people, instead of to
lobbyists for big business and the wealthy."
D.
GOVERNMENT AND CORPORATE BEHAVIOR:
THE ROLE OF LEADERSHIP
There is a division of opinion among Americans on the question of how much
government can or should do about the problem of corporate greed and its
impact on working families. This division is largely the product of the public's
continuing skepticism toward government's ability to solve problems, but also
reflects some concerns about the impact that government involvement could
have on jobs in the private sector.
Nonetheless, there is a broad consensus in the country today about the
importance of having national leaders speak out on the need for corporations to
be fair and responsible in their treatment of their employees. In an electoral
context, voters express a substantial preference for a candidate who favors a
more active government role in holding corporations to a higher standard of
responsibility over a candidate who believes the government should not get
more involved in this area than it already is. And when we move from the
Peter D. Hart Research Associates
The Mellman Group
25
abstract question of governmental involvement to the public's reaction to specific
policy proposals, we find that there are a number of steps that are strongly
favored by a majority of Americans.
As mentioned previously, 83% of the public agrees that "average working
families have less economic security today, because corporations have become
too greedy and care more about their profits than about being fair and loyal to
their employees." When asked whether this is the kind of problem the federal
government should do something about, however, 41% say yes, while 51% say
this is not the kind of problem in which the government should get involved. It is
worth noting that, in a follow-up question, as many Americans volunteer positive
comments about government involvement in corporate behavior (41%) as
volunteer negative comments (40%). The leading concern people express about
government involvement is its possible effect on small business (this possibility
represents nearly half of all the unfavorable comments).
But even as many Americans express doubts about how much
government should do to deal with corporate greed and its consequences, the
plurality of Americans say that government today is doing too little to deal
with this problem. Overall, just 6% say the government is doing too much, 33%
think the government is doing the right amount, and 45% feel the government is
doing too little. The view that the government is doing too little is most prevalent
among voters who have attended some college (56%), independent voters
(54%), blue collar voters (54%), and voters under age 35 (50%).
Peter D. Hart Research Associates
The Mellman Group
26
Indeed, 80% of Americans believe that it is very (61%) or fairly (19%)
important for national leaders, such as the president, to speak out publicly about
the need for corporations to be fair and responsible in how they treat their
employees. When given a choice between one candidate for national office who
believes government should play a more active role in holding corporations to a
higher standard of responsibility in the way they treat their employees, and
another candidate who believes the government should not get more involved in
this area than it already is, voters prefer the supporter of governmental action by
57% to 35%-with 46% strongly favoring the candidate who believes government
should be more involved. Both Democrats (by 73% to 21%) and independent
voters (by 62% to 29%) are more likely than average to side with the activist
candidate, as are supporters of Ross Perot (by 65% to 29%).
Voters Prefer Candidate Who
Wants To Do More
73%
62%
57%
53%
35%
36%
29%
21%
All voters
Democrats
Independents
Republicans
Gov't play more active role
Gov't no more involved
in how corps treat workers
than at present
Peter D. Hart Research Associates
The Mellman Group
27
When read an argument against governmental action (based on the
assertion that government involvement would make business less competitive
and cost jobs in the long run), with no countervailing positive argument,
Americans divide evenly on whether government should pass new laws that hold
corporations to a higher standard of responsibility in the way they treat their
employees (44% say yes, 45% say no).
When given arguments on both sides of the question, however, the public
overwhelmingly is more persuaded by the case for action. Here, 62% of
Americans endorse the position that government needs to be more involved
"because too many corporations have stopped playing by fair rules-they lay off
productive workers while giving huge bonuses to the top executives, and they
cut back on pensions and health care benefits, even when their profits and stock
prices are increasing." Half that proportion (31%) endorse the opposite position
that "corporations are doing what they need to to compete and survive in a
rapidly changing global economy, and if government tries to interfere with free
enterprise by telling corporations what they can and can't do, it will only make
things worse by causing business to be less competitive and costing us jobs in
the long run."
Peter D. Hart Research Associates
The Mellman Group
28
Support For Government Involvement
62%
Gov't should be
more involved
because corps
don't play fair:
they lay off
31%
workers & give
bonuses to
Gov't
execs; cut
interference will
pensions/health
make business
care while
less
profits increase
competitive &
cost jobs
In the real world, the rubber meets the road when voters are confronted
with specific policy proposals involving the relationship between corporations
and their employees. In this context, the research identified seven governmental
actions that large majorities of Americans say they would favor, and for which at
least half of all voters express strong support.¹ These policies include:
Strengthening the laws that require employers to give women
equal opportunities and equal pay for equal work;
Increasing the tax rate on corporations that repeatedly violate
environmental and workplace safety standards;
Requiring corporations with more than 50 employees to provide
basic health insurance benefits;
Requiring corporations with more than 50 employees to provide
basic pension benefits;
1
Even when told of the opponents' assertion that these proposals "would cost jobs and involve
too much government interference with business.
Peter D. Hart Research Associates
The Mellman Group
29
Requiring profitable corporations to provide three months of
health benefits and job placement assistance to laid-off
employees if the company moves jobs overseas or lays off
workers while giving large executive bonuses;
Giving special tax benefits to corporations that provide health
insurance and pension benefits to their employees; and
Increasing the tax rate on corporations that repeatedly violate
labor laws, such as laws that protect the rights of employees to
form unions if they want to and to bargain collectively.
Best Ways To Promote Corporate
Responsibility
Strongly favor the measure
Stronger laws for
76%
women's equality
High tax on enviro/
71%
safety violators
Mandatory health
70%
insurance
Mandatory pension
66%
Benefits for
66%
laid-off workers
Tax breaks for health/
54%
pension benefits
High tax on labor
50%
law violators
For the first five of these items, 55% or more of Bob Dole's current supporters
say these are measures that they would strongly support.
The message from the research is that Americans do not want
government to micromanage corporate America or even to pick sides against
corporations in the name of workers. Clearly, however, Americans believe that
government should be involved in ensuring basic standards of fairness and
Peter D. Hart Research Associates
The Mellman Group
30
making sure corporations play by fair rules. They also want leaders to use their
bully pulpits to reassert the values of loyalty, fairness, and work.
Peter D. Hart Research Associates
The Mellman Group