The midterm elections will change the political landscape in the United States. The likely Republican majority in the House of Representatives and, perhaps, also in the Senate will be an obstacle to any policy initiatives or actions for the Biden Administration. One of the areas where it will have to seek to overcome this majority will be the economy.
The Biden Administration will now have to negotiate its economic policy with a Republican-majority in Congress. All this at a time when inflation remains high, although it has moderated to 7.7%, fears of the economy falling into recession are still growing.
Most Americans disapprove of the Biden Administration's economic management. While the Republican candidates emphasized the economy during the election campaign, the Democrats preferred to prioritize other issues such as abortion in their discourse, even going so far as to say that increased abortions are the solution to lowering high inflation.
In order to reach agreements with the Republican Party on economic matters, Joe Biden will have to fill vacancies in economic agencies, such as the Federal Reserve and the Treasury Department. It is in the Senate where any candidate running for office in these bodies is voted upon and approved. And that is where the Biden Administration will have to seek a path of bipartisanship with Republicans.
Public spending and national debt
The Republican Party took the floor and proposed measures to try and reduce inflation and alleviate the economic crisis. Among its proposals is to reduce federal spending. During the last fiscal year, the Biden Administration spent more than $6.27 billion, down 8% from FY 2021. Despite this reduction, the GOP is determined to continue reducing it, as they believe it is the main factor responsible for high inflation.
If the Republican Party achieves a majority in Congress, it will have the power to block any Biden Administration bill. That is, if Republicans deem a measure unnecessary or overspending, they will be able to block it and it will not go forward.
One of the members of the Special Committee on the Economy, Republican Representative Bryan Steil, pointed out two causes of the current inflation. One of them is superfluous spending. The other is formed by restrictions on energy production in the country. He has addressed this message to President Biden:
There are solutions to address price increases. Stop reckless spending and unleash American energy.
There are solutions to address rising prices. Stop reckless spending and unleash American energy. pic.twitter.com/PZgitHTiNe
- Bryan Steil (@RepBryanSteil) November 1, 2022
Related to public spending is the national debt, which is another aspect that gains relevance in the discourse of the Republican wing. They want to avoid defaulting on the debt ceiling and not reach a deadlock due to a confrontation between the two parties, as there was in 2011. The GOP has gone so far as to call the current Administration's public spending policy as "wasteful."
Trillions in wasteful spending under Joe Biden and the Democratic one-party rule in Washington is fueling our national debt. Americans need a disciplined government that is accountable to the people.
Trillions in wasteful spending under Joe Biden and Democrat one-party rule in Washington is fueling our national debt. Americans need a disciplined government that is accountable to the people. https://t.co/Zlsy7RJt4d
- Select Committee on the Economy (@EconomyGOP) October 30, 2022
