By ALAN FRAM and JENNIFER AGIESTA

WASHINGTON (AP) — Most Americans think jarring economic problems will erupt if lawmakers fail to increase the government’s borrowing limit. Yet they’re torn over how or even whether to raise it, leaning toward Republican demands that any boost be accompanied by spending cuts.

According to an Associated Press-GfK poll, 53 percent say that if the debt limit is not extended and the U.S. defaults, the country will face a major economic crisis. An additional 27 percent say such a crisis would be somewhat likely, while just 17 percent largely dismiss the prospects of such damage.

Separately, Republican officials said Wednesday that GOP lawmakers may seek a short-term extension of the debt limit, thus avoiding a default as early as next month by the U.S. Treasury while they try to negotiate spending cuts with President Barack Obama over the next few months. “All options are on the table as far as we’re concerned,” Rep. Paul Ryan said at a House Republicans’ retreat near Williamsburg, Va.

The poll’s findings echo many economists’ warnings that failure to raise the debt ceiling and the resulting, unprecedented federal default would risk wounding the world economy because many interest rates are pegged to the trustworthiness of the U.S. to pay its debts. Obama and many Republicans agree with that, though some GOP lawmakers eager to force Obama to accept spending cuts have downplayed a default’s impact.

When asked which political path to follow, 39 percent of poll respondents support the insistence by House Speaker John Boehner, R-Ohio, and Senate Minority Leader Mitch McConnell, R-Ky., that deep spending cuts be attached to any measure increasing the debt ceiling. That’s more than the 30 percent who back Obama’s demand that borrowing authority be raised quickly and not entwined with a bitter fight over trimming the budget.

An additional 21 percent oppose boosting the debt ceiling at all.

The survey was conducted as the two parties gird for a debt-limit battle that is likely to dominate the next two months in the capital. The fight is sure to underscore partisan differences over how to curb federal deficits that have surpassed $1 trillion for four straight years. Obama insists that besides spending cuts there should be more tax increases on the wealthy, which the GOP opposes.

While saying he will refuse to negotiate on the debt ceiling, Obama has said he will bargain separately on finding ways to reduce the annual federal deficit.

Despite the majority in the survey who fear severe economic problems if the debt limit is not raised, in a separate question only about 3 in 10 supported the general idea of increasing the ceiling. Four in 10 opposed it, with the rest expressing neutral feelings.

Democrats were about twice as likely as Republicans to support boosting the borrowing limit, while Republicans were likelier than Democrats by a similar margin to oppose an increase.

The government reached its $16.4 trillion borrowing limit Dec. 31 but has avoided default by using cash from pension and other funds it administers, money that will eventually be replaced. Treasury Secretary Timothy Geithner has said his ability to use such bookkeeping measures will be exhausted by early March or sooner.

Wayne Wiedrich, 46, an engineering inspector in Williston, N.D., said in a poll follow-up interview that he agrees that failure to boost the debt ceiling would risk severe problems.

“But on the other hand, it’s not doing the economy any good to raise the debt limit, print money and spend money we don’t have. One of these days China will come knocking on our door and say, ‘We own you,’” he said, referring to the country that holds more U.S. debt than any other nation.

Homemaker Sherry Giordano, 59, of Feasterville, Pa., disagreed.

“It has to be done,” she said of raising the borrowing limit. “We shouldn’t risk our reputation or spend money and time arguing about it. We have to pay our debts.”

The survey showed slight shifts in concerns about the economy and federal budget deficits. Eighty-six percent consider the economy a top issue, down 5 percentage points from last summer, while 76 percent have the same view on federal deficits, up 7 points since then.

Around one-third expect the economy to worsen over the next year, the highest figure in AP-GfK polling in nearly two years. Less than 1 in 4 think the economy is in good shape, a fairly stable number since last summer.

Despite the slight edge people give the GOP’s debt limit path, the survey showed Obama with some advantages as he begins his second term.

Fifty-four percent approve of how he is handling his job, a figure that has changed little over the past year. That is more than triple Congress’ 17 percent approval rating, which edged down 6 percentage points since early December, before the two sides’ “fiscal cliff” fight ended with Republicans largely accepting Obama’s demands to raise taxes on the country’s highest earners.

Democrats also have a slight 41 percent to 36 percent advantage over Republicans as the party more trusted to handle the economy.

Both Obama and Congress have fallen in the public’s esteem after their last battle over the debt ceiling.

In AP-GfK polling in June 2011, the president held a 52 percent approval rating. By August, it had declined to 46 percent after down-to-the-wire negotiations with Congress. Congressional approval ratings fell even further, from an already weak 21 percent in June to just 12 percent after the year’s debt limit standoff finally ended.

When it comes to finding savings to balance the budget, nearly half prefer cutting government services as the GOP wants, 3 in 10 would rather increase taxes and about 1 in 10 would do both. The percentage backing cuts in federal services has dropped 13 percentage points since the spring of 2011, while the number supporting tax cuts has changed little.

The poll also highlighted how public support dwindles when people are asked about specific cuts.

Given four ideas for reducing budget deficits, only one got majority support: charging top earners higher Medicare premiums, backed by 60 percent. That included roughly even proportions of Democrats and Republicans, and majorities of all income groups in the poll.

Only 30 percent back slowing the growth of annual Social Security benefit increases, which Obama agreed to accept in failed talks with Boehner on crafting a deficit-reduction compromise during the “fiscal cliff” fight. Just 35 percent support gradually raising the current Medicare eligibility age of 65, and 41 percent support defense cuts.

The poll involved landline and cellphone interviews with 1,004 randomly chosen adults and had a margin of sampling error of plus or minus 4 percentage points. It was conducted from Jan. 10 to 14 by GfK Roper Public Affairs and Corporate Communications.

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AP news survey specialist Dennis Junius contributed to this report.

Online: http://www.ap-gfkpoll.com

How the AP-GfK poll on debt limit and politics was conducted

By The Associated Press

The Associated Press-GfK poll on the debt limit and politics was conducted by GfK Roper Public Affairs & Corporate Communications from Jan. 10-14. It is based on landline telephone and cellphone interviews with a nationally representative random sample of 1,004 adults. Interviews were conducted with 604 respondents on landline telephones and 400 on cellular telephones.

Digits in the phone numbers dialed were generated randomly to reach households with unlisted and listed landline and cellphone numbers.

Interviews were conducted in both English and Spanish.

As is done routinely in surveys, results were weighted, or adjusted, to ensure that responses accurately reflect the population’s makeup by factors such as age, sex, education and race. In addition, the weighting took into account patterns of phone use — landline only, cell only and both types — by region.

No more than 1 time in 20 should chance variations in the sample cause the results to vary by more than plus or minus 4 percentage points from the answers that would be obtained if all adults in the U.S. were polled.

There are other sources of potential error in polls, including the wording and order of questions.

The questions and results are available at http://www.ap-gfkpoll.com.

 

Topline results are available at http://www.ap-gfkpoll.com and http://surveys.ap.org.

 

AP-GfK Poll: Americans prefer low prices to items ‘Made in the USA’
WASHINGTON (AP) — The vast majority of Americans say they prefer lower prices instead of paying a premium for items labeled “Made in the U.S.A.,” even if it means those cheaper items are made abroad, according to an Associated Press-GfK poll.

While presidential candidates like Donald Trump and Bernie Sanders are vowing to bring back millions of American jobs lost to China and other foreign competitors, public sentiment reflects core challenges confronting the U.S. economy. Incomes have barely improved, forcing many households to look for the most convenient bargains instead of goods made in America. Employers now seek workers with college degrees, leaving those with only a high school degree who once would have held assembly lines jobs in the lurch. And some Americans who work at companies with clients worldwide see themselves as part of a global market.

Nearly three in four say they would like to buy goods manufactured inside the United States, but those items are often too costly or difficult to find, according to the survey released Thursday. A mere 9 percent say they only buy American.

Asked about a real world example of choosing between $50 pants made in another country or an $85 pair made in the United States — one retailer sells two such pairs made with the same fabric and design — 67 percent say they’d buy the cheaper pair. Only 30 percent would pony up for the more expensive American-made one. People in higher earning households earning more than $100,000 a year are no less likely than lower-income Americans to say they’d go for the lower price.

“Low prices are a positive for US consumers — it stretches budgets and allows people to save for their retirements, if they’re wise, with dollars that would otherwise be spent on day-to-day living,” said Sonya Grob, 57, a middle school secretary from Norman, Oklahoma who described herself as a “liberal Democrat.”

But Trump and Sanders have galvanized many voters by attacking recent trade deals.

From their perspective, layoffs and shuttered factories have erased the benefits to the economy from reduced consumer prices.

“We’re getting ripped off on trade by everyone,” said Trump, the Republican front-runner, at a Monday speech in Albany, New York. “Jobs are going down the drain, folks.”

The real estate mogul and reality television star has threatened to shred the 1994 North American Free Trade Agreement with Mexico and Canada. He has also threatened to slap sharp tariffs on China in hopes of erasing the overall $540 billion trade deficit.

Economists doubt that Trump could deliver on his promises to create the first trade surplus since 1975. Many see the backlash against trade as frustration with a broader economy coping with sluggish income gains.

“The reaction to trade is less about trade and more about the decline in people’s ability to achieve the American Dream,” said Caroline Freund, a senior fellow at the Peterson Institute for International Economics. “It’s a lot easier to blame the foreigner than other forces that are affecting stagnant wage growth like technology.”

But Trump’s message appeals to Merry Post, 58, of Paris, Texas where the empty factories are daily reminders of what was lost. Sixty-eight percent of people with a favorable opinion of Trump said that free trade agreements decreased the number of jobs available to Americans.

“In our area down here in Texas, there used to be sewing factories and a lot of cotton gins,” Post said. “I’ve watched them all shut down as things went to China, Mexico and the Philippines. All my friends had to take early retirements or walk away.”

Sanders, the Vermont senator battling for the Democratic nomination, has pledged to end the exodus of jobs overseas.

“I will stop it by renegotiating all of the trade agreements that we have,” Sanders told the New York Daily News editorial board earlier this month, saying that the wages paid to foreigner workers and environmental standards would be part of any deal he would strike.

Still, voters are divided as to whether free trade agreements hurt job creation and incomes.

Americans are slightly more likely to say free trade agreements are positive for the economy overall than negative, 33 percent to 27 percent. But 37 percent say the deals make no difference. Republicans (35 percent) are more likely than Democrats (22 percent) to say free trade agreements are bad for the economy.

On jobs, 46 percent say the agreements decrease jobs for American workers, while 11 percent say they improve employment opportunities and 40 percent that they make no difference. Pessimism was especially pronounced among the 18 percent of respondents with a family member or friend whose job was offshored. Sixty-four percent of this group said free trade had decreased the availability of jobs.

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The AP-GfK Poll of 1,076 adults was conducted online March 31-April 4, using a sample drawn from GfK’s probability-based KnowledgePanel, which is designed to be representative of the U.S. population. The margin of sampling error for all respondents is plus or minus 3.3 percentage points.

Respondents were first selected randomly using telephone or mail survey methods and later interviewed online. People selected for KnowledgePanel who didn’t otherwise have access to the Internet were provided access at no cost to them.

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Online:

http://ap-gfkpoll.com

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On Twitter follow Emily Swanson at @EL_Swan and Josh Boak at @joshboak


AP-GfK Poll: Public wants Senate action on court, but interest is modest

WASHINGTON (AP) — Nearly 2 in 3 Americans back Democrats’ demands that the Republican-run Senate hold hearings and a vote on President Barack Obama’s pick for the Supreme Court. But an Associated Press-GfK poll also suggests that GOP defiance against considering the nominee may not hurt the party much because, to many people, the election-year fight is simply not a big deal.

Just 1 in 5 in the survey released Wednesday said they’ve been following the battle over Obama’s nomination of federal judge Merrick Garland extremely or very closely.

That included just 26 percent of Democrats and 22 percent of Republicans expressing intense interest, along with a scant 8 percent of independents. That aligns with the political reading of the issue by many Republicans that while it motivates each side’s most committed partisans, people in the middle consider it a yawner — making the fight essentially a wash.

Another clue that voters not dedicated to either party find the court fight tiresome: While just over half of Democrats and Republicans said the issue is extremely or very important, only around a third of independents — and half of Americans overall — said so.

About 8 in 10 said that about the economy and about 7 in 10 took the same stance about health care and the threat posed by the Islamic State group. Immigration and the U.S. role in world affairs both attracted slightly more intensity of interest than the court battle.

“It gets me irritated, the bickering and all that kind of stuff,” Julie Christopher, 49, a Republican and flight attendant from Fort Worth, Texas, said in a follow-up interview, describing her modest attention to the issue.

Christopher said that while she agrees with the GOP’s refusal to hold hearings on Garland, when it comes to backing candidates in November, “That’s not going to be my only thing, like boom, I’m not going to vote for them.”

Hours after Justice Antonin Scalia’s death in February, Senate Majority Leader Mitch McConnell, R-Ky., said his chamber would not consider an Obama nominee and would instead wait until the president elected this November makes a pick. With the remaining justices split 4-4 between those leaning conservative or liberal, most GOP senators have lined up behind McConnell.

Democrats have been spewing outrage ever since. Along with liberal groups, they’ve been using television ads, news conferences, public demonstrations and Senate speeches to ratchet up pressure on GOP senators, especially those facing re-election this fall in swing and Democratic-leaning states like Illinois, New Hampshire, Wisconsin, Pennsylvania and Ohio.

Democrats’ theory is that the public wants Republicans to end their obstruction and let the Senate do its job, forcing GOP senators to relent on Garland or risk defeat in November. The AP-GfK poll has some data backing that up.

The 64 percent who favor hearings and a vote this year on Garland include an overwhelming proportion of Democrats and a sizable minority of Republicans, 40 percent. Independents, who can be pivotal in closely divided states, back action this year, 52 percent to 36 percent.

“I’d rather see at least deliberations, and see Congress do its job,” said Marc Frigon, 33, a high-tech worker from Beverly, Massachusetts, who leans Republican and wants the Senate to reject Garland’s confirmation. “I feel like that’s why we elected them in the first place.”

Just over half of moderate and liberal Republicans want the Senate to hold hearings this year, while fewer than 3 in 10 GOP conservatives say that.

Overall, people say by 59 percent to 36 percent that they want the Senate to approve Garland should a vote be held. Nearly 9 in 10 Democrats favor confirmation and independents tilt slightly that way, while 69 percent of Republicans favor rejecting him.

In another sign that the public tips toward Obama on the issue, 57 percent approve of the way he’s been handling the Garland nomination. That’s more than the number who gave the president positive reviews on any other issue in the poll: the economy, health care, Islamic State militants, immigration and world affairs.

The AP-GfK Poll of 1,076 adults was conducted online March 31-April 4, using a sample drawn from GfK’s probability-based KnowledgePanel, which is designed to be representative of the U.S. population. The margin of sampling error for all respondents is plus or minus 3.3 percentage points.

Respondents were first selected randomly using telephone or mail survey methods and later interviewed online. People selected for KnowledgePanel who didn’t have access to the Internet were provided access for free.

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Online:

http://ap-gfkpoll.com