Economist Daniel Lacalle warns in 'Voz News': 'The Democrats' filibusters in Congress could have a very significant impact on the economy'

Economist and political analyst Daniel Lacalle noted that the Republican defeat in the midterm elections stemmed from three main factors: the war with Iran, concerns about inflation and communication errors by the party's campaign. During an interview on "Voz News," Lacalle explained that the Democrats managed to impose their political narrative, while the Republicans relied too heavily on the assumption that favorable economic indicators would be enough to convince voters. "The narrative — both in terms of ideology and campaign messaging — has been led by the Democratic Party, creating the image of a Republican Party that didn't know what it wanted to do about the war with Iran," he said.

The economist also warned of the potential economic consequences of Democrats controlling both chambers of Congress, especially if they use their majority to push through legislative filibusters and hinder investments in artificial intelligence. In analyzing the recent drop in stocks linked to the sector, Lacalle considered it a normal market correction, more closely related to central banks' monetary policies than to the election results. However, he warned of the risk that Democrats might push for moratoriums on data centers. "If the Democrats are going to spend the remainder of the legislative session focused on filibusters, vetoes, impeachment attempts and data center moratoriums, that could have a very strong impact on investment, growth and the economy in general," he said.

Regarding the future of Donald Trump's economic policy, Lacalle asserted that the administration's key measures are already underway and that the new legislative landscape will not entail a change in their framework. Among these, he mentioned the reduction of government employment, deregulation and the passage of the so-called "Big Beautiful Bill." He also noted that the president retains his veto power, a tool previously used by other presidents who had to govern with a House and Senate controlled by their political opponents.

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 However, he insisted that Republicans must seize the opportunity to highlight the differences between their proposals and those of the left. "The Republican Party has a golden opportunity — one I've explained — that has also occurred, for example, with conservative and right-wing parties in Europe. Look at the disaster caused by left-wing and socialist alternatives when they take charge of economic decision-making," he said.

In assessing the U.S. economic situation, Lacalle noted that the country continues to grow faster than other developed economies, with annualized growth of 3.2% in the last quarter, productivity of 2.2% and positive figures for employment, investment and consumption. However, he acknowledged that the main problem remains affordability and the cost of living. "Inflation is a problem that affects citizens, and the Republican Party has the measures to reduce inflation," he asserted, advocating for reduced public spending and monetary expansion as tools to contain prices without harming economic growth.

Elsewhere in the interview, Lacalle attributed part of the Republicans' electoral failure to an overly defensive communication strategy and called for a return to the principles of economic freedom associated with Ronald Reagan's legacy. "The Republican Party seemed to be constantly on the defensive, reacting to the left's narrative," he noted. He also criticized the Texas governor for getting caught up in the debate over a possible moratorium on data centers, rather than defending their importance for investment, jobs and lower electricity prices. "When the Republican Party defends the ideas of freedom, it wins by a landslide. When it follows the narrative of the social democrats and socialists, it loses," he concluded.

You can watch the full interview by clicking on the video below.