What the Midterm Voting Results Tell Us About the Future of the Economy

The polls are off across the country, and it seems clear that the Republicans will likely take control of at least the House of Representatives, and they have a chance of controlling the Senate. Although there was no red tsunami, Republicans have made progress, and luckily we will likely have a divided government for the remainder of the Biden presidency.

So what does this mean for working-class and middle-class Americans? What can Republicans do to fix the economy with one — maybe two — houses of Congress? It turns out they can do a lot. Let’s look at what could play out economically in each of the likely post-election scenarios.

First, with at least a majority in the House, Republicans can halt Democrats’ passage of massive spending legislation that fueled inflation and crushed American families (like the bloated US bailout and the ironically named Inflation Reduction Act). This alone will do wonders for the business world, as it will eliminate the current uncertainty about what horribly flawed legislation Democrats will pass next.

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If the Republicans won both the House and the Senate, they could use the reconciliation process (which avoids filibuster and allows the Senate to pass tax legislation by a majority vote) to pass pro-Trust legislation. growth. Biden would then be forced to either veto the legislation (as Clinton did with the tax cuts passed by Republicans in 1995) or enact it (as Clinton did with aid reform. social).

If that is ultimately the case, I would expect Republicans to focus on energy and crime. Energy is both a jobs and inflation-fighting issue, with important national security connotations.

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Given Tuesday night’s election results and the real crises facing our country, there are likely Senate Democrats who would support action in both areas — perhaps not enough to defeat a filibuster, but enough to make these truly bipartisan issues. This is the kind of bipartisanship that Americans were hoping for. This is an opportunity for both political parties to deliver.

Even with House control alone, Republicans can also begin to reverse excessive government spending and inflation. Inflation and the economy have always been the No. 1 issue on voters’ minds and have been a deciding factor in a number of otherwise tight races. Two ways House Republicans are dealing with overspending are:

Government funding: By tradition, general supply bills originate in the House and supply is where most of the political fighting will take place over the next two years.

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This is also where Republicans will have maximum leverage — Biden’s administration needs taxpayers’ money to do anything. Republicans should limit spending levels and also cut harmful spending that funds the left’s agenda. Reducing funding for some of Biden’s spending and tax giveaways to green energy programs would be a great place to start.

Debt limit: The Treasury will reach the debt limit of $31.2 trillion next year. This is absurd debt, especially with rising interest rates. Raising the debt limit has always served as a leverage point to do something about spending, for 40 years.

Any agreement to raise the debt ceiling should be accompanied by spending cuts and reforms that address our country’s underlying problem: unsustainable spending.

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All of this points to a better and stronger economy with Republicans controlling one or both houses of Congress.

Elections matter because politics matters – and, as the past 21 months have demonstrated, that matters a lot.

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