What does post-midterm elections Congress deadlock mean for the US economy?

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What does post-midterm elections Congress deadlock mean for the US economy?

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The US political map was re-painted with a ‘Red wave’ during the midterm elections.

Voters sent a clear message to President Barack Obama, by allowing Republicans to reclaim the majority in the Senate and thus control all Congress.

Why is that? Pundits list foreign and domestic issues, but with no particular focus on the economy.

In that area, the latest indicators suggest the White House is actually doing a good job: unemployment is under six percent and GDP in the third quarter expanded at a 3.5 percent pace.

For more insight Giacomo Segantini spoke to euronews Washington DC correspondent Stefan Grobe and asked first – what happened to the famous mantra ‘It’s the economy, stupid’? Did Americans really forget about financial issues?

Stefan Grobe: “Well, America is a divided country. And it is divided for a reason, and that is growing economic inequality. All the gains, almost all the gains, that have been produced over the last 30-plus years have gone to the top one percent of the population, while wages for the 99 percent have barely budged.”

Giacomo Segantini: “How do you think the President’s economic agenda will change now that he has been forced to compromise?

Stefan Grobe: “I don’t think it will change at all. And the President indicated that on Wednesday in his news conference. He now sees himself as the sole defender of the middle class, the only political player who stands for income equality, universal healthcare coverage, and raising the minimum wage. All being rejected by the Republicans.

“But, you know, an interesting thing happened on Tuesday: in four conservative ‘Obama-hating’ states – Alaska, Arkansas, Nebraska and South Dakota – minimum wage increases were on the ballot. And, guess what? They all passed by huge margins. So, Obama may be unpopular but his policies are not”.