Democrats Do Not Have the Power to Sway Economy Even With Midterm Upset
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US President Donald Trump warned that if Democrats regain political power in the midterm Congressional elections, the US economy could implode, because:
- Democrats would push tax hikes and environmental restrictions that stifle growth.
- Undocumented immigrants would steal jobs and unleash a crime wave that would halt commerce.
- Health insurance would devolve into a socialist program offering shoddy care at unsustainable cost.
“At stake in this election,” President Trump declared, “is whether we continue the extraordinary prosperity that we’ve all achieved or whether we let the radical Democrat mob take a giant wrecking ball and destroy our country and our economy.”
If Democrats did win control of the House in next week’s congressional elections, their legislative priorities would not alter this $20-T economy.
The Big Q: Why?
The Big A: President Trump would still able to block Democratic initiatives.
What instead would likely result is gridlock, and perhaps even more entrenched than what exists now in Washington.
Arrayed against a stout Republican majority in the Senate, a Democratic House majority could not do much to reorder the economy, which typically hinges more on the willingness of consumers and businesses to spend and on the state of the global economy than on government policy priorities.
Many polls and analyses (the same ones that assured Americans the Hillary Clinton would be elected President in Y 2016) suggest that the Democrats could regain a majority in the House if their voters turn out in sufficient numbers in Key races. If so, President Trump would have to contend with a divided government instead of 1 with Republicans in complete control.
Yet depending on voter turnout, it is also possible that the Republicans could maintain their hold on both the House and the Senate, even gaining strong majorities.
Wednesday, the major US stock market indexes finished at: DJIA +241.12 at 25115.76, NAS Comp +144.25 at 7306.09, S&P 500 +29.11 at 2711.88
Volume: Trade on the NYSE came in at 1.3-B/shares exchanged
- NAS Comp +5.8% YTD
- DJIA +1.6% YTD
- S&P 500 +1.4% YTD
- Russell 2000 -1.6% YTD
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