F O C U S G R O U P A N A L Y S I S

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YG Network

Swing & Tea Party Focus Group Participants

Prepared by John McLaughlin & Brian Larkin, 8/5/13

Presentation Outline

�  1. Methodology p. 3 �  2. Middle Class Situation Analysis p. 4-6 �  3. Middle Class Resentment p. 7-14 �  4. Higher Education p. 15-17 �  5. Wage Growth & Prosperity p. 18-23 �  6. Modernizing Medicare p. 24-25 �  7. Curing Chronic Diseases p. 26 �  8. Caring For The Neediest; Welfare & Foodstamps

p. 27-28.

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Methodology

McLaughlin & Associates conducted a total of 8 focus groups of likely voters in 4 cities between June 24th and July 1st, 2013. In each city, one group consisted of Swing Voters and the second group consisted of Tea Party Voters. The cities included: �  Phoenix, Arizona on June 24th, �  Minneapolis, Minnesota on June 25th, �  Palm Beach, Florida on June 26th, �  Manassas, Virginia on July 1st. (only females) These focus groups were designed to give an in-depth qualitative analysis of voter opinions. It is important to note, this is a qualitative, not a quantitative, study. The data in this report reflects the responses from just 70 focus group participants who were selected to meet strict criteria. This should be considered when reading data.

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Middle Class Situation Analysis

�  Similarities Between Participant Groups: ¡  Both Swing and Tea Party participants believe the country is

headed in the wrong direction. Swing participants are somewhat more optimistic, but still distain Washington for its “lack of leadership” and refusal to take responsibility.

¡  Participants held Republicans and Democrats in contempt because both parties were perceived to be against the Middle Class. ÷ Republicans were seen as the party only of big business ÷ Democrats were seen as the party only of the poor

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Middle Class Situation Analysis

�  Similarities Between Participant Groups: ¡  Participants believe their property values are improving.

Beyond that, they did not cite other things “going well” for the Middle Class.

¡  Participants are concerned about economic issues: ÷ Stagnant Wages ÷ Lack of jobs ÷ Obamacare ÷ Lack of personal responsibility

¡  There is a tremendous amount of resentment against politicians in general.

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Middle Class Situation Analysis

�  Differences: ¡  Tea Party participants felt strongly that the federal government

could not do much to help families. Conversely, Swing participants felt the federal government could benefit families with certain policies.

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Middle Class Resentment

�  The Middle Class is getting squeezed and no one is on their side. The poor get benefits, but the rich get breaks through loopholes. ¡  “You either have to be real rich or poor to get benefits. If you’re

in the middle, you’re screwed.” – Manassas. ¡  “We make enough so we can’t get [public] benefits, but not

enough to send them to college.” – Palm Beach ¡  “The Middle Class is going away. No wage increases, high

healthcare costs. We don’t have a voice.” – Phoenix ¡  “The rich are getting richer, the poor poorer and the Middle

Class smaller.” – Manassas

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Right Direction/Wrong Track?

�  Tea Party: In all four cities, they were unanimous in their belief that the US is headed down the wrong track and is regressing under the leadership of President Obama. When asked what the biggest problem facing the US, economic issues, lack of leadership, and declining moral values were commonly cited. ¡  “Distrust of government.” – Phoenix ¡  “Lack of personal accountability.” – Minneapolis ¡  “Big government/Too much intrusion.” – Palm Beach

�  Swing: They felt that there was a “lack of leadership” in Washington. Believed Washington is only working for special interests, not for them. Expressed concern for “lack of responsibility” from politicians and citizens. ¡  “Burden falling on Middle Class.” – Minneapolis ¡  “We are going from crisis to crisis with no long-term strategy.” – Manassas

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One Word To Describe Republicans

�  Tea Party: Did not give Republicans a free pass. They may be more ideologically aligned with Republicans, but they were by no means favorable to them. ¡  “Greedy.” – Phoenix ¡  “Lost/No compass.” – Minneapolis ¡  “I think they lost their platform.” – Palm Beach

�  Swing: Had a negative assessment of Republicans. ¡  “Partisan- Party before people.” – Phoenix ¡  “Pro-Business.” – Minneapolis ¡  “Reserved. Old-Fashioned.” – Palm Beach ¡  “Out of touch.” – Manassas

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One Word To Describe Democrats

�  Tea Party: Attacked Democrats. They were tough on Republicans, but they downright disliked Democrats. Believed Democrats to have moral shortcomings. ¡  “Crooked.” – Phoenix ¡  “They want to help but they’re not helping in the long run.” -

Phoenix ¡  “Lack of standards/Free for all.” – Minneapolis

�  Swing: Gave mixed reviews to Democrats. ¡  “Middle-Class support.” – Minneapolis ¡  “Hand-outs and creative spending.” – Palm Beach ¡  “Out of touch, financially.” – Manassas

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Who Helps The Middle Class?

�  Tea Party: Mixed on whether or not Republicans were good for the Middle Class. Some felt they were no better than Democrats and only out to help “big business.” ¡  “I don’t think anyone is [looking out for the Middle Class] right

now. We’ve lost control of government.” – Palm Beach �  Swing: Felt neither Republicans nor Democrats were

representing them. ¡  “There is no relief for me. I pay my bills. They don’t.” –

Phoenix

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What Is Going Well For The Middle Class?

�  Tea Party: Very little. Property values are perceived to be increasing and their kids are getting a good education, but not much else is going well. ¡  “Housing prices are increasing, but wages are only increasing

2%. Housing went up 26%.” – Phoenix

�  Swing: Considered property values to be improving, but not much else. ¡  “The housing market is improving.” – Manassas

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What Is NOT Going Well For The Middle Class?

�  Tea Party: Healthcare issues (specifically related to Obamacare), wage stagnation, and cost increases hurting middle class. ¡  “Obamacare put our healthcare in jeopardy. With the economy

and tuition… it’s a real thing we will be facing very soon.” – Palm Beach

�  Swing: Focused on Obamacare and said the Middle Class is “going away” and “shrinking.” ¡  “Losing the American dream- homes and college.” – Phoenix ¡  “Things are either the same price or they’re going up, but the

cost of living is increasing.” - Manassas

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American Dream

�  Both Tea Party and swing participants chose an optimistic perspective over pessimistic. Agenda B was the unanimous choice, save for 2 individuals overall who were undecided. ¡  Agenda A: “The middle class can't get good jobs, can't afford health

care, and can't afford higher education. The deck is inherently stacked against them and they can't realistically aspire for more. To help, the government should provide more since the middle class might not have the American Dream in reach, but should be taken care of.”

¡  Agenda B: “Americans face tough times, but American aspiration still exists. There can be lower barriers to get a good education, policies that are relevant to the 21st century to grow the economy and create jobs, a lower tax burden, and a health care system that works since the old system and ObamaCare don’t work. Through smart reforms, the middle class can achieve their aspirations.”

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Higher Education

�  Similarities Between Participant Groups: ¡  Higher ed costs are crippling family finances.

÷ Kids have so much college debt they can’t move out or start a family. ¡  Technology can help reduce costs. ¡  Online courses were embraced by some, though online courses not

embraced by all participants. �  Difference Between Participant Groups:

¡  Swing participants felt the government should provide more education funding, scholarships, and tax breaks for education. ÷  “If we want to remain a competitive country, then yes [the federal

government should work to reduce the cost of higher education.]” - Phoenix

¡  Tea Party participants felt it was not the federal government’s responsibility to reduce higher education costs.

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How Can The Government Help The Middle Class With Higher Education Costs?

�  Tea Party: Concerned about costs but don’t believe the federal government is the way to reduce them. ¡  “I would like to see more college credits available to high school

students who excel and work hard.” – Phoenix

�  Swing: Reducing the costs of higher education would significantly help their families. ¡  “The government could lower the cost of going to a state-run school

by eliminating waste.” – Phoenix. ¡  “Higher education is too expensive and putting too much burden on

kids. We should focus on community and technical schools to save money; not socially desirable schools.” - Minneapolis

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Can Technology Make Education More Affordable? (Online classes, transparent budgets)

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�  Tea Party: Mixed beliefs on the use of technology to reduce educational costs. Many thought it was useful but some remained unconvinced. Room for expanding this opinion. ¡  “Not necessarily… Online courses are a bit less, but not much.”

– Phoenix �  Swing: Belief that posting school budgets online will

help reduce costs, though many believed online education to not deliver the experience of a traditional classroom. ¡  “The average student benefits because online courses are a lot

less expensive.” – Manassas.

Wage Stagnation 18

�  Tea Party: Participants see their incomes shrinking and the cost of living going up. ¡  “I’ve had the same salary the for the past 6 years… My cost of

living is going up… healthcare premium went from $78 to $182… my cable bill went up, electric bill is up 25% my costs are going up, but not my wages.” – Phoenix

�  Swing: Identical story to Tea Party participants. ¡  “Cost of living is going up- groceries, gas, food, and tuition.” –

Phoenix ¡  “Wage stagnation actually means you are going backward. Cost

of living is always going up but you are making the same.” –Manassas

Regulatory Costs 19

�  Tea Party: Against federal regulation in general, but little connection on regulations’ impact on businesses/income. ¡  “The regulation stuff can kill you.” – Phoenix

�  Swing: Wanted balance. Felt that regulations were potentially harmful to job creation, but also felt that some should be left in place. ¡  “It’s going to the affect the Middle Class because there will be

fewer jobs out there, but some regulations are essential.” – Manassas

¡  “What are regulatory costs?” - Manassas

“Reducing The Deficit” vs. “Growing The Economy And Creating Jobs”

20

�  Tea Party: Little consensus due to belief that both should occur. ¡  “I can’t choose… I think both should happen.” – Palm Beach ¡  “Jobs – give people a chance to start businesses and create

jobs.” – Manassas

�  Swing: Saw both sides of the argument, but sided more with job creation. ¡  “If you grow the economy and increase jobs, the economy will

resume itself.” - Manassas

Tax Reform 21

�  Tea Party: felt strongly that the federal government should create a more even tax code where the top tax rate is reduced and the lower tax rate is increased. ¡  “The top rate should be lowered and impose taxes on workers who

don’t pay income taxes.” – Minneapolis ¡  “It’s important that people who are receiving don’t just receive and

receive and receive. It’s not fair.” – Manassas ¡  “Mortgage tax deduction, so we can finish paying off the house.” –

Minneapolis �  Swing: Some felt that everyone should pay taxes, but

many felt that the wealthy should be taxed more than the poor. ¡  “Yes… everybody has to have skin in the game.” – Palm Beach

Increasing The $1,000 Child Tax Credit To $4,000.

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�  Tea Party: Had concerns about it. They felt having a child was a personal choice and should not be subsidized. ¡  “Where is that money going to come from? Some people have three

or four kids?” - Phoenix ¡  I have two kids, I would benefit, but I’m not willing to sacrifice for it.

We keep giving things away without paying for it.” –Manassas �  Swing: Worried about costs and that it would encourage

people to have more children for financial gain. ¡  “There needs to be some kind of cut off. It needs to go to the

neediest.” – Manassas ¡  “I want individual families to take more responsibility.” –

Minneapolis ¡  “Tie it to income and prorate it.” - Manassas

Energy Costs & Keystone Pipeline 23

�  Tea Party: Heavily in favor of accessing domestic oil reserves, because it will reduce costs, reduce reliance on foreign oil, and create jobs. ¡  “America has largest gas and oil reserves? I say where is it?

Let’s use it!” – Phoenix” ¡  “We need to do more with our resources.” – Minneapolis

�  Swing: Saw economic benefit of drilling for natural gas and approving Keystone. Some concern about environment, but mostly outweighed by economic benefits.

Modernizing Medicare 24

�  Similarities Between Participant Groups: ¡  Felt Medicare needed to be reformed because it “won’t be there

for me,” and were concerned about fraud and abuse. ¡  Participants felt that Medicare benefits do not need to be cut,

and did not think that the program was financially unsound. �  Tea Party:

¡  “These people have to decide if they need pills or they eat.” – Manassas

¡  “No. It needs help, but I don’t think [reducing benefits] will reduce debt.”

�  Swing: ¡  “It’s shaky. I don’t know if it’s financially sound.” – Manassas

Modernizing Medicare 25

�  “President Obama said ‘If you look at the numbers, then, Medicare in particular will run out of money, and we will not be able to sustain that program no matter how much taxes go up.’ Knowing this, which approach do you favor to reduce Medicare costs?” ¡  Congressman A: “The federal government should raise taxes on wealthy seniors

and limit payments to doctors and hospitals to avoid fundamental changes to the Medicare program.”

¡  Congressman B: “Modernize Medicare by providing choices to consumers so competition can control costs and the economy isn’t burdened by higher taxes.”

�  Tea Party: Drawn to Congressman B �  Swing: Liked idea of “competition” but had vague understanding of

Medicare and its costs. ¡  “I just had a CT scan and it was covered so I have no idea what it costs.” -

Manassas ¡  “More competition to bring prices down.” - Minneapolis

Curing Chronic Diseases 26

�  Tea Party: Government philosophy applied to chronic disease research as well. They felt it should be left to private universities and organizations. ¡  “Private groups are better suited for it.” – Minneapolis ¡  “The federal government doesn’t need to be involved.” –

Manassas �  Swing: More in favor of government involvement.

¡  “The government should definitely give grants to help fund research.” - Minneapolis

Caring For The Neediest: Welfare & Food Stamps 27

�  Similarities Between Participant Groups: ¡  Participants felt that government needs to “care for the needy,”

but believe it’s very easy for recipients to become too dependent on the safety net and the state.

¡  Participants felt that the system is set up for failure due to heavy dependency.

¡  More Middle Class resentment. Both groups feel assistance should be temporary and are upset at people who “work the system.”

¡  Those on public assistance are seen as not contributing.

Caring For The Neediest: Welfare & Food Stamps 28

�  Tea Party: Concerned about dependency. ¡  “Working the system hurts all the groups. It costs us more

money. It hurts us giving it and the really needy.” – Manassas

�  Swing: current “safety net” programs need major reforms. ¡  “People should have to work to receive food stamps, with a few

exceptions.” – Minneapolis.