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Contemplating a Congressional Shift?s Economic Effects

If the Democrats manage to take over one or both houses of Congress on November 7, what will the effect be on the U.S. economy? The Dow Jones average has far surpassed the 12,000 mark in recent weeks?will a ?revolution? of sorts in the balance of power in Washington shake the foundations in the short term of the current economic performance indicators, or will the effects be only noticeable in the long term? It used to be ?the economy, stupid?. Now has war overtaken all else in importance for U.S. elections?

The war is seen as a drain on the country?s financial resources. The U.S. was quick to send financial and military aid to south Asia following the devastating earthquake-tsunami incident of December 2004, yet couldn?t relieve the victims of Hurricane Katrina in a similar fashion. But there is more to the story than just war, the housing market is in a questionable state, and there still lacks in Washington the answer to the country?s intense vulnerability to the wiles of foreign oil suppliers.

Republicans have been scrambling to try and prove that their?s is the party of national security, and while this has been going on the Democrats have generally failed to portray their party as the party of anything aside from opposition to the initiatives of the White House. If the situation continues in this way, you can bet that voters will grow ever-more upset with their representatives and senators, and will vote accordingly.