A severe judgment was handed down to an Obama administration that is nearing the middle of its term.
The ruling Democratic Party lost more than 60 seats in the House of Representatives in the midterm elections, suffering a historically crushing defeat by the minority party.
In complete victory that exceeds that of 16 years ago, when they took 52 seats from the Democratic Party, the Republican Party secured a majority in the House for the first time in four years. They showed fierce competition for seats in the Senate as well.
Even in the current session of Congress where the Democratic Party holds both houses, the Obama administration is having trouble with congressional measures due to the Republican Party’s attitude of noncooperation. Those difficulties will grow even larger in the next session of Congress that starts in January next year, when congressional power will be seized by the opposition party.
How will this affect President Obama’s ability to accomplish his political policies? It is impossible for the international community, including Japan, not to closely observe the Obama administration’s diplomatic, security and trade policies.
The primary factor in the waning fortunes of the Democratic Party is the voters’ opposition and dissatisfaction regarding economic policies.
The employment situation is growing worse; unemployment remains at 9 percent in the second half of the year. Economic recovery is not proceeding as expected so tax revenues have not increased, and the budget deficit has continued for two years, surpassing $1 trillion.
It could be said that the voters sympathized with the Republican Party’s criticisms that “Obama’s economic recovery policies have only increased the deficit and unemployment.”
Through enormous government spending, President Obama (who took office in the midst of the unprecedented financial crisis that followed the Lehman Shock) halted the collapse of the financial system and rescued the bankrupt American auto industry leader General Motors.
However, this is not related to the creation of new jobs or boosting the economy.
On the contrary, the “big government” route, by stressing the regulation of financial affairs, has roused the anger of conservatives that hate government intervention. A grassroots movement called the “tea party” spread to many parts of the country and became a driving force in boosting the Republican Party in the midterm election.
Hereafter, the public spending reduction faction will gain momentum in the American Congress. The Obama administration will face strong opposition when it implements business stimulation policies. If the feeling of an economic policy stalemate strengthens, the effects will reach the world economy as well.
The Republican Party advocates the repeal of or drastic amendments to the health care reform bill. They oppose the global warming policy bill that incorporates emissions trading as well. There is also the possibility that they will show disapproval of not only the Comprehensive Nuclear-Test-Ban Treaty, but the ratification of Russian-American nuclear disarmament treaties.
For the sake of the achieving his policies, President Obama must demonstrate his strong leadership in persuading Congress.
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