Poll: Finns optimistic that consequences of recession will not be severe

Half would postpone government plans for tax cuts

print this

The government’s message that Finland will make it through the upcoming economic recession with relatively minor damage appears to have sunk in.
     According to a poll commissioned by Helsingin Sanomat and conducted by Suomen Gallup, two thirds of Finns believe this, while just one in four predict a severe recession.
     The poll analysed Finns’ views of the economic situation and government plans for tax cuts.
     Popular sentiments about economic trends tend to lag behind events in the real economy. Recessions always come unexpectedly, and it also takes time before the public at large notices the start of an upturn.
     
Taking the most optimistic views of the future are supporters of the government parties. The most optimistic are supporters of the Green League, 82 per cent of whom feel that the damage from the recession will be minor. About three out of four supporters of the Centre Party and the National Coalition Party have similar views.
     Supporters of opposition parties are more pessimistic. For instance, more than a third of supporters of the Social Democrats feel that the recession will be deeper than predicted.
     However, more than half of supporters of the SDP and the Left Alliance expect Finland to make it through the recession well.
     The positive attitude of supporters of the main government parties could be influenced by a desire to support the government. Optimism can be seen as an endorsement of Prime Minister Matti Vanhanen (Centre) and Minister of Finance Jyrki Katainen (Nat. Coalition Party).
     
The government is planning stimulus measures to keep the economy running. These measures include billions of euros in tax cuts.
     Finns are divided on whether or not the promised tax cuts should be implemented in the current situation. Just under half of respondents would implement the tax cuts as planned, while about half would postpone or cancel the cuts.
     A majority of supporters of the Centre and National Coalition Party would implement the tax cuts, while the prevailing view among supporters of the SDP, the Left Alliance, the Greens and the True Finns is that the tax cuts should be postponed or cancelled.
     Households with less income tend to be more willing to postpone or cancel the tax cuts.
     If the lowering of taxes is implemented, a majority would use the monetary gains to buy goods and services. This suits the government, as its greatest fear is that people would react to the economic uncertainty by saving money, which would decrease consumption and deepen the slump.
     
Just over one third would like to save the money. Young people are especially keen to put money away: 58 per cent of those under 25 would put money into savings, while only one in four elderly Finns would do the same.
     Two fifths of women would save their money, while just over one in four men would do so.
     
The poll involved telephone interviews in early November with 1,003 people living in mainland Finland. The margin of error is three percentage points.

More on this subject:
 Finns better prepared for recession than in early 1990s

Previously in HS International Edition:
  Authors of new book want decision-makers to be made accountable for overly drastic economy measures (7.10.2008)
  Economists: Finland better prepared for economic problems than in early 1990s (8.10.2008)
  Research institutes predict stagnation of economic growth next year (30.10.2008)

Helsingin Sanomat