The mid-term elections last week resulted in a substantial overhaul of Congress. Though certainly not unprecedented, the preferences of the voters could result in changes in vital legislative actions and even have some impact on the nation’s economy.
With the change in leadership scheduled for January, many officeholders are now participating in their final session of Congress. In some cases, the actions of these lame ducks, as they take another quack at it, could be of significant importance. More likely, however, many major decisions will be delayed until next year while political maneuvering and orientation takes place, and while refresher programs on ethics are offered in efforts to eliminate scandals which undoubtedly had some part in the election of some new members to Congress.
There are those who consider the November 7 elections to be a referendum on the war in Iraq, particularly in regard to policy direction and exit strategies. As a result, efforts are now underway in various corners to effect changes in the principles and procedures that have guided US activities and actions in that part of the world over the past four years.
Some who cast their ballots may now be fearful that their hopes and plans will somehow be lost due to the power shift and the logistical changes normally associated with periods when the House and Senate are controlled by one political party and the Executive branch administered by the other.
There is some validity to both concepts, but perhaps of more importance for the future of our nation is the manner in which the two parties govern over the next year or two, especially in those areas relating to the economy.
The US economy, of course, is still expanding, but the rate of growth has been slowing slightly over the past two quarters. There is some optimism that this dip is temporary as profit margins remain strong and capital goods data continues to be positive. However, actions taken within the Washington Beltway could have some impact on their future direction.
Will our legislative and executive branches be guided in the future by “partisan politics” where our elected officials overcome the potential for gridlock and work together to develop appropriate plans and programs or by the goose-and-gander retribution philosophy? While it may be difficult to know at this point, we can be aware of the many important issues they will be considering, several of which are associated with the economy.
As a result of the mid-term elections, the probability of minimum wage legislation has increased. On the other hand, a notable change in tax policy would likely run into a Presidential veto.
Although the ongoing war in Iraq took center stage in much of the pre-election debates, it is an issue which is almost certain to take years to resolve. However, the fallout for the economy is minimal barring an unforeseen escalation.
Irrespective of political considerations related to immigration, the US economy is dependant on the immigrant workforce. Finding effective ways to make the process of immigration more efficient while maintaining security is vital to future prosperity.
A few other issues on tap for our government leaders to consider include how to reduce the budget deficit, overhaul Social Security and Medicare, alleviate rising health care costs, eliminate dependency on foreign energy sources, make adjustments to regulatory matters, and improve international trade, especially the imbalance. The list is much more extensive, but space precludes my including more.
Oftentimes, elected officials in DC look at situations through partisan-colored glasses. On special occasions, they don a-political spectacles and thereby seem to govern more effectively and efficiently. The manner in which the legislative and executive branches work together in the future will reveal the vision of our nation’s leaders. What they see and how well they act together can have long lasting impact on our daily lives.