Obamanomics to blame for historic Democratic midterm collapse
It wasnâ€™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.
Of course, Democrats will understandably be tempted to blame the debacle almost entirely on the undeniably poisoned chalice George W. Bush handed them. The Great Recession was of a sort Americans hadnâ€™t experienced since the one Franklin Roosevelt encountered. The two previous downturns were brief and job losses minor. Even now, Americans are as gloomy as they were at the downturnâ€™s depths.
But if the American public was blindsided, so was the White House. It recklessly predicted unemployment would never reach 8 percent if Congress passed its $816 billion stimulus plan. The economic team was also dismissive, even through this spring, of the notion that the U.S economy would suffer the slow-growth aftermath that typically follows deep financial crises.
Still, the magnitude of Democratic losses â€“ the worst drubbing in the House since the 1930s — certainly hints more at play than just economic frustration. In the 1982 midterms, for instance, Republicans lost just 26 House and zero Senate seats despite unemployment cresting at 10.8 percent. The damage was much worse in 1994 — Democrats lost 54 House seats and 8 in the Senate — when unhappiness over President Bill Clintonâ€™s healthcare plan offset a growing economy.
Likewise, voters saw the passage of Obamaâ€™s healthcare reform, which helped spawn the Tea Party movement, as at best a distraction from job creation. To this day, as many as two thirds of Americans polled think the stimulus was mostly a waste of money. That might be an overly harsh assessment. But even the White House admits the planâ€™s â€śshovel-readyâ€ť spending took too long to implement. And instead of cuts in marginal tax rates or payroll taxes, Team Obama chose poorly structured tax credits.
Despite plunging polls, business complaints about regulatory uncertainty and populist rhetoric, and the stunning loss Ted Kennedyâ€™s Senate seat last January, there was no major course correction. To the White House, it was all just a bunch of whining. It was only in September that the administration finally proposed a â€śsecond stimulusâ€ť of business tax cuts that were too little, too late to change the political or economic dynamic. The economy made a Republican win almost inevitable, but Obamanomics made it a wipeout.