(Angus Reid Global Monitor) – A solid
majority of people in the United States
rejects the notion that certain companies should be bought by the federal government
in order to prevent them from going out of business, according to a poll by the
National Constitution Center
released by the Associated Press. 71 per cent of respondents share a negative
opinion towards nationalizing private companies even partially.
(Angus Reid Global Monitor) – A solid
majority of people in the United States
rejects the notion that certain companies should be bought by the federal government
in order to prevent them from going out of business, according to a poll by the
National Constitution Center
released by the Associated Press. 71 per cent of respondents share a negative
opinion towards nationalizing private companies even partially.
When asked what to do in a case in which
the failure of a company threatened to seriously damage the national economy,
38 per cent of respondents would favour a partial take-over by the federal
government, while 60 per cent would still oppose it.
Since 2007, defaults on so-called subprime
mortgages—credit given to high-risk borrowers—in the U.S. caused volatility in
domestic and global financial markets and ultimately pushed the U.S. economy
into a recession. A recession is defined as two consecutive quarters of
negative growth. The crisis has affected the global financial and credit
systems, and triggered layoffs in companies around the world.
In 2008, the U.S. government took control of
mortgage lenders Fannie Mae and Freddie Mac. Other financial
institutions—including Bear Stearns, Merril Lynch, Lehman Brothers, American
International Group (AIG), IndyMac Bancorp and Washington Mutual—have been
sold, placed under bankruptcy protection, or received emergency loans from the
Federal Reserve. On Sept. 15, the stock market plummeted in North America,
Europe and Asia.
Also
last year, representatives from the big three North American
automakers—Ford, General Motors and Chrysler—appeared before the U.S. Congress
to request federal assistance to keep the industry operational.
In December 2008, then U.S. president George W. Bush approved a
bail-out plan, which would provide loans of $17.4 billion U.S. to General
Motors and Chrysler. Bush stated that, under present economic conditions,
"allowing the U.S.
auto industry to collapse is not a responsible course of action."
On Jun. 1, General Motors filed for
bankruptcy protection. U.S.
president Barack Obama announced that the U.S.
government would make an additional investment of about $30 billion U.S. in General
Motors, adding, "We’re making these investments not because I want to
spend the American people’s tax dollars, but because I want to protect them.
(…) We are acting as reluctant shareholders—because that is the only way to
help GM succeed."
Earlier this week, president Obama visited
a GM plant and spoke to the workers about “fighting for an America where
clean energy generates green jobs”. Charles Griffith, the Ecology Center’s
Clean Car Campaign head, criticized GM for not meeting its obligations in
matters of mercury-recycling, and called Obama to put pressure on the company,
declaring, "We take him [Obama] at his word, and fully support him in that
effort. But GM, the company that his Administration owns, is pulling out of all
its legacy environmental commitments. The Administration should step up and
simply direct GM to rejoin this mercury recycling program – and live up to its
responsibility to the environment more broadly."
Polling Data
Do you favor or oppose the Federal
government taking partial ownership of private
companies to prevent them from going out of
business?
|
Favor |
27% |
|
Oppose |
71% |
|
Don’t know |
2% |
How about if the failure of the company
would seriously harm the economy, would you
favor or oppose the Federal government
taking partial ownership of private companies
to prevent them from going out of business?
|
Favor |
38% |
|
Oppose |
60% |
|
Don’t know |
2% |
Source: National Constitution
Center / Associated Press
Methodology: Interviews with 1,001 American
adults, conducted from Sept. 3 to Sept. 8, 2009. Margin of error is 3.1 per
cent.
