Exiting Iraq is viewed as cure for recession

WASHINGTON — The heck with Congress' big stimulus bill. The way to get the country out of recession — and most people think we're in one — is to get the country out of Iraq, according to an Associated Press-Ipsos poll.

Pulling out of the war ranked first among proposed remedies in the survey, followed by spending more on domestic programs, cutting taxes and, at the bottom end, giving rebates to poor people in hopes they'll spend the economy into recovery.

The $168 billion economic rescue package Congress rushed to approval this week includes rebates of $600 to $1,200 for most taxpayers, the hope being that they will spend the money and help revive ailing businesses. President Bush is expected to sign the measure next week. Poor wage-earners, as well as seniors and veterans who live almost entirely off Social Security and disability benefits, would get $300 checks.

However, just 19 percent of the people surveyed said they planned to go out and spend the money; 45 percent said they'd use it to pay bills. And nearly half said what the government really should do is get out of Iraq.

Forty-eight percent said a pullout would help fix the country's economic problems "a great deal," and an additional 20 percent said it would help at least somewhat. Some 43 percent said increasing government spending on health care, education and housing programs would help a great deal; 36 percent said cutting taxes.

"Let's stop paying for this war," said Hilda Sanchez, 44, of Waterford, Calif. "There are a lot of people who are struggling. We can use the money to pay for medical care and help people who were put out of their homes."

The subject of leaving Iraq shows a sharp partisan divide — 65 percent of Democrats think it would help the economy a lot, but only 18 percent of Republicans think so.

Just 29 percent of people think putting more money in the hands of the poor would help a great deal in fixing the country's economic problems.

According to many economists, the lower people are on the income ladder, the more probable it is that they will spend a rebate and do it quickly — a shot in the arm for the ailing economy.

In the poll, 61 percent said they think the economy is already in a recession.

"Things are bad, but it will get a lot worse," said Jim Sims, 60, of Greer, S.C.

And Nanette Dahlin, 52, of St. Louis Park, Minn., said the economic stimulus package "would only make a recession less damaging."