Partisan Gridlock Tops List of Investors' Economic Concerns

The partisan gridlock on Capitol Hill is an imperfect storm of dysfunction that tops the list of investor concerns for the economy in 2012, according to a recent study by Motley Fool. Seventy percent of the nearly 1,700 respondents blame the uncertainty caused by political bickering and perceived gamesmanship for holding back the economy.

Federal Reserve Chairman Ben Bernanke said as much last October when he testified before Congress about government spending and reducing the deficit. “The brinksmanship of the summer and at least perception in the minds of some investors that the United States might actively consider defaulting on its debt. . . . I think was a negative for the financial markets,” he said. “It’s no way to run a railroad.”

Just this week, Democrats and Republicans resumed finger-pointing as talks to extend the payroll tax cut before the Fe. 29 deadline stalled.

Investors surveyed by Millionaire Corner, too, pointed the finger toward Capitol Hill when asked last month what it considers to be the major obstacles in achieving the American Dream. Just under 71 percent cited the partisan political climate. The older the investor, the more fervent they were in leaving the blame for the prolonged economic downturn on Capitol Hill’s doorstep. Forty-six percent of those under 40 blamed the divisive atmosphere in Washington, compared with 66 percent of those ages 41-50, 74 percent of those between 51 and 60, and 84 percent of those ages 60 and older.

Among those polled by Motley Fool. dysfunctional politics topped by a wide margin the list of investor’s economic concerns. Forty-four percent said it was uppermost on their minds, followed by the national debt (24 percent) and unemployment (14 percent).

Other hindrances to the economy, the survey found, are deficit spending (48 percent), corporate greed (34 percent) and excessive regulation (33 percent). Despite recent signs that the economic recovery is gaining traction, 79.6 percent of investors said they have the same level or even less confidence in the economy than a year ago.

Meanwhile, Congress’ approval rating was at 13 percent, according to a January ABC News/Washington Post poll. This is the worst rating in poll results since 1974. There is a 35 point margin between Congress’ rating and President Obama’s, whose 48 percent approval puts him on par with four previous presidents who started their re-election year with less than 50 percent approval. Only one, Richard Nixon, went on to win.

Congress has not won many popularity contests (except from comedians for whom the lawmakers are a fount of material).  Its approval rating has averaged 38 percent in nearly 120 polls by ABC and the Post since 1988, and Gallup previously dating to 1974, ABC News reports. One exception was in December 2011, when approval of Congress peaked at 59 percent as the country experienced a patriotic surge following the 9-11 attacks.