U.S. midterm elections brought a degree of sweet payback for banks miffed about financial reform and President Barack Obama’s populist rhetoric. Their campaign dollars helped fund huge Republican gains. But the new Tea Party-infused GOP will present as many challenges as opportunities.
American presidents usually win second terms, even if their parties suffer midterm blowouts. But President Barack Obama better not rely on history for a 2012 victory. To lift his political fortunes after Tuesday’s absolute shellacking — and those of the economy — he needs to work with incoming Republicans to do two big things: cut spending and cut taxes. Here’s why:
It wasn’t just the economy, stupid. The historic losses suffered Tuesday by Democrats in the U.S. midterm elections owe as much to the unpopular and off-point agenda of President Barack Obama as it does to high unemployment. A policy pivot might have limited the damage, but the White House failed to recognize the trouble until too late.