Forty-eight percent (48%) of U.S. voters say that, generally speaking, increased government spending is bad for the economy.

Thirty-five percent (35%) believe more government spending will help the economy, and seven percent (7%) say it’s likely to have no impact, according to the latest Rasmussen Reports national telephone survey.

Democrats have a fundamentally different perspective than Republicans or unaffiliated voters. By a 63% to 23% margin, Democrats say more government spending is likely to help the economy. By a 77% to nine percent (9%) margin, Republicans take the opposite view and believe more spending will hurt.

As for those not affiliated with either party, 52% say more government spending generally hurts the economy while 25% believe it helps.

Those who earn less than $40,000 a year are evenly divided on the question while a majority of those who earn more than $40,000 a year say increased spending is more likely to hurt than help.

By a 54% to 31% margin, investors say increased government spending generally hurts the economy while non-investors are more evenly divided.

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In a speech to his fellow Democrats last Thursday, President Obama expressed surprise that Republicans in Congress were critical of the proposed $800-billion-plus economic rescue plan for having too much new government spending in it. “It’s spending. That’s the whole point,” Obama said of the plan.

Voters are evenly divided on whether the president is right about that.

Forty-five percent (45%) of voters say cuts in government spending generally help the economy while 29% say it hurts.

Republican voters overwhelmingly believe cutting government spending is good for the economy. Forty-six percent (46%) of unaffiliated voters agree, although 20% of unaffiliateds say that cutting spending would harm the economy.

A plurality of Democrats hold the opposite view: 44% of those in Obama’s party say cutting government spending generally hurts the economy while 30% say it helps.

The economic recovery package working its way through Congress has come under fire from many for having too much government spending. Only 15% of voters say they’d support a plan to stimulate the economy that included only new spending and no tax cuts.

Other data shows that Americans are evenly divided on Obama’s assessment that there will be a catastrophe if an economic stimulus package fails to pass quickly.

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