The failure of the White House and congress to have some meeting of the minds to avoid the huge budget cuts this past Friday has had one big measurable effect so far. It has sharply driven down the public approval numbers of both the Obama White House as well as congress. New Gallup polls find that the Obama presidential approval numbers are now down to 46-46% tie of approval and disapproval. This is down sharply from the buoyant poll numbers the president experienced near the end of November 2012 election that lifted him to victory and some even larger approval ratings in more recent months. Congressional rating are now around the 14-15% approval range, some of the worst numbers ever posted.
While a big cut in public approval numbers for government seem to be the most noticeable impact so far, thankfully the business community doesn’t seem to be panicking about the impact on the economy right now. Stocks may be down around 46 points so far today, but the market as a whole is still above the 14,000 mark. The business community seems to be taking a wait and see approach that government can still reconcile their differences and soften some of the cuts to some vital services or areas of government control. Business apparently wants to act with caution and not harm any potential recovery. And that’s a very good thing.