The focus Tuesday at the Democratic National Convention is on economic issues, but voters are evenly divided on which course is best in the current economic climate -- controlling inflation or promoting growth. A modest plurality think government policies might help.

Forty-three percent (43%) give the edge to more economic growth, while 42% say controlling inflation is more important, according to a new Rasmussen Reports national telephone survey (full Demographic Crosstabs available for Premium Members).

Forty-two percent (42%) also think government policies intended to help a specific industry can benefit the overall economy, but 34% disagree.

Barack Obama has proposed economic incentives to help the auto industry retool to produce greener vehicles. John McCain has called for a $300 million reward to the inventor of an electric battery that can fully power an automobile.

Inflation is a cause for concern for 85% of Americans, and economic issues are number one on voters’ minds this election cycle. Our latest tracking shows that 44% of voters rank the state of the economy as the top campaign issue. For 55% of Democrats, it’s the number one concern.

The new findings come as the Rasmussen Consumer Index, which measures the economic confidence of American consumers on a daily basis, is at a five-month high. The Index is still down 18 points from the beginning of the year though.

Several new Rasmussen Reports surveys show voters agreeing –- and disagreeing -- with prescriptions from both the major political parties.
The Republicans and their likely presidential nominee, for example, have called for lifting the ban on offshore oil drilling as one way to help cut oil and gas prices. Sixty-two percent (62%) of voters agree with that position versus 27% who do not. This position has helped McCain stay competitive in the presidential race. Fifty-five percent (55%) also agree with McCain’s call for building more nuclear plants.

But Democrats and Obama, the man on track to be nominated this week as the party’s standard-bearer, have opposed offshore drilling because of environmental concerns. Voters are evenly divided on which is more important, reducing gas and oil prices or protecting the environment.

Just over half (51%) also agree with Obama’s plan to spend $150 billion to develop green energy sources.

Voters continue to trust Obama slightly more than McCain on both energy and economic issues.

Fifty-five percent (55%) of voters say tax increases hurt the economy, and the identical percentage believe tax cuts are economically beneficial. Both these positions are comfortably in line with McCain and the GOP. Republican voters overwhelmingly support these positions, as do over half of unaffiliated voters, but Democrats are more evenly divided.

Ask voters to be more specific, and only 39% say they favor a candidate who opposes all tax increases while 45% support one who would raise taxes only on the rich, a position that has been endorsed for years by the Democrats. That’s why 68% of Republicans back a candidate opposed to all tax increases while 65% of Democrats want someone who will raise taxes on those in the upper income brackets. Unaffiliated voters want to tax the rich more by a 45% to 35% margin.

Half of voters (50%), by the way, say they pay more their fair share of taxes, but 35% believe they do not. Over half of GOP voters (54%) and 53% of unaffiliateds think they pay too much, but just 46% of Democrats feel that way.

While Democrats continue the call, most prominently sounded in the early 1990s by Hillary Clinton, for full government-driven national health insurance, 90% of voters say they have coverage and 72% rate it good or excellent. Sixty-two percent (62%) say they would keep their existing insurance, while 20% would opt for government insurance if available.

Eighty-four percent (84%) of Republicans and 60% of unaffiliated voters prefer to stick with the coverage they have, but Democrats are again divided, with 44% preferring their current insurance and 34% choosing government insurance if available.

Voters are evenly divided in their views of the U.S. health care system overall: 32% rate it good or excellent; 33% say it’s poor.

See survey questions and toplines. Crosstabs available for Premium Members only.