A Boost for Big Government

It’s a year today since Lehman Brothers went bankrupt, and we’ve been busy over the summer gauging the effect of a year of market crunch - and government splurge - on global public opinion.

As billions of dollars of state spending has poured into national economies over the last year in a frantic attempt to shore up the financial system and stop recession turning into depression, it’s become increasingly apparent that reports of the death of government as a serious economic player - a fashionable idea in early 2007 - were, as they say, somewhat exaggerated. Big government is back.

The seeds of the financial meltdown were, no doubt, sown over many years. But it’s worth remembering that the situation deteriorated so rapidly last autumn that governments in the major economies by and large didn’t have the time to consult their electorates about the handbrake turn in macro-economic policy that they undertook at the end of last year. The rediscovery of big government has largely done so without the endorsement of voters.

So, what’s the belated verdict? Positive, it appears. Our latest global poll for BBC World Service shows that, by and large, citizens around the world approve of governments attempting to stimulate their national economy in response to the recession - majorities in 13 of the 20 countries we polled supported a significant increase in government spending. Fully two-thirds want to see an increase in government stimulation and oversight of their economy - including nearly half of Americans, who are usually among the most suspicious of government overreach. Supporting troubled industries is also popular; bailing out banks less so. And the unprecedented stimulus package at the heart of the US response seems to have won plaudits, with 46% approving of the US’s approach so far.

But what is also apparent is that while people seem to feel the stimulus was needed in response to the crisis, it won’t in itself be enough in the longer term. One of the most striking findings is the very strong support for government investments in renewable energy and green technology, backed by nearly three-quarters. People seem to be looking for a different model. And they continue to feel that the benefits and burdens of the boom years haven’t been shared fairly. The crisis may have passed, but this appears to be a reminder that big governments need to lead, as well as spend.