Making Financial Headlines · Page 7
Election Winners Inherit an Economy That Did Not Read the Slogans
· New York time
The Democratic midterm victory changes the political landscape, but the biggest forces shaping the U.S. economy are not going to change simply because the party in power did, according to CNBC's assessment. The new occupants of Washington may find the economic furniture rather heavy. Control of Congress can influence legislation, oversight and the direction of policy debates. It does not instantly reset the forces affecting prices, jobs, spending and borrowing. Those forces continue to shape decisions by households and businesses while the political parties argue over what should happen next. That is not a claim that elections have no economic consequences. It is a distinction between a change in political control and an immediate change in the wider economy. Some policy choices require legislation, some take time to work through, and some economic pressures extend well beyond a single election. For voters and investors, the result creates new questions about the agenda in Washington without supplying a new monthly budget overnight. Campaigns are designed to make a choice feel decisive. The economy has a less convenient habit of carrying its existing obligations into the next term. The signs outside the office may change first. The bills inside still need sorting.
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