- CRITTER TALK
There will be a lot of reasons for tonight’s midterm results, not the least will be the remarkable lack of courage displayed by the Democrats. While in power they managed to enact landmark legislation from health care to cap and trade, climate change and environment issues, significant financial reform and a wealth of other legislation that may well be undone by the party of the Right.
In point of fact the Democrats passed legislation they have been wanting to pass for over 60 years, and yet, when it came time to brag about it, they ran away from it. The message that was communicated to the people was nothing like the facts supported by the Democratic agenda and yet the Democrats allowed the Republicans to define them. Their lack of courage will cost them and cost them dearly and perhaps it should.
So who really wins tonight? Well there is a curious upside to a Republican takeover of the Congress and that is on Wall Street. Although that should come as no surprise here is an interesting story from The Christian Science Monitor:
For voters distraught about the prospects of a Democratic bloodbath in the midterm elections and the potential loss of control of Congress, consider this: a changeover may be great news for the stock market.
Conventional wisdom suggests Wall Street may be both responsive and suggestive–to Republican control of government and the pro-corporate policies typically supported by the GOP. But the evidence suggests that the stock market actually fares best under a divided government, when the party that controls the White House differs from the majority party in Congress. In fact, the winning combination for Wall Street seems to be a Democratic president with a counterbalance of a GOP-led Congress.
Recent studies suggest some aspects of the economy generally perform better under Democratic presidents than Republicans. This appears to be specifically true of the stock market. Between 1975 and 2009, the Dow Jones Industrial Average climbed 11.6 percent annually on average during Democratic administrations, compared to 8.5 percent during Republican presidencies.
But here’s where the real difference shows up.
Stock market performance over the same period has been markedly better under divided control of government – when one party has controlled the White House but not both chambers of Congress – than when the party in the White House also has a majority in Congress. The Dow rose by 6.1 percent annually on average during periods of unified government, but climbed at more than twice this pace (by 11.1 percent annually on average) during episodes of divided control.
The Dow does also seem to fare slightly better under Republican control of the US House, growing by an average 11.1 percent annually between 1975 and 2009, compared to 9.0 percent when Democrats control the House. But, still, no political power arrangement correlates better with strong stock market performance than a government divided between two parties.
So, that being said I’m going to vote now. I won’t vote for a Republican so I will vote for the Democrat, hopefully one with the courage of his or her convictions, few and far between as they may be. After all I really don’t want Glenn Beck and the rest of the radicals at Fox News telling America about what is happening in Congress. Do you?Click here for reuse options!