Aftermath of the Mid-Term Elections – The Country and California

As this article is unfolding, the election results are still being tabulated but there are certain facts that have taken shape at this point in the Mid-Term Election process. Let’s first take a look at the nation scene.

The House will certainly be controlled by the Republicans and the Democrats will maintain a slight control over the Senate. Of course, Obama still is the President. From a governance point of view, the Democrats will maintain control over 2/3 of the government. But, from a pragmatic point of view, the Democrats have retained the responsibility for the results of the government over the next two years. Republicans cannot control what takes place in the Senate, and certainly not the Presidency, but the Republicans can certainly make life miserable for the President. If the Republicans had gained control over the Senate, the Republicans would have been held responsible for the results of the government over the next two years even if Obama vetoed legislation they sent to him.

Now, the Republicans can pass legislation in the House that includes:

  • Repeal of Obamacare Repeal the Financial Reform Bill. Make the Bush Tax Cuts permanent. If the Senate or Obama kills the extension, they own the result.
  • Moratoriums on the choking regulations enacted by fiat by Obama. If the Senate or Obama kills the moratorium, they own the result.
  • Kill Cap and Trade if it is sent to the House by the Senate. If Obama tries to enact much of the bill via EPA regulations, send a bill to the Senate and Obama to kill the regulations. If the Senate or Obama kills the bill, they own the result.
  • Kill the government takeover of private 401K funds. . If the Obama tries to use an Executive Order to force the takeover, then send a bill to the Senate to override the EO. . If the Senate or Obama kills the bill, they own the result.
  • Send up Boarder Security Legislation to the Senate that will be defeated. If the Senate or Obama kills the bill, they own the result.
  • Stop Amnesty if the bill is sent to the House from the Senate. If the Obama tries to use an Executive Order to force amnesty, then send a bill to the Senate to override the EO. If the Senate or Obama kills the bill, they own the result.
  • Send a Balanced Budget Law to the Senate and to Obama. If the Senate or Obama kills the bill, they own the result.
  • And so on…
  • 

When Obama has to run in 2012, he will be running against his own failed record and an economy that will still be staggering and beginning to fight against inflation caused by a failed Fed policy and will not have anyone else to blame. He burned over 60 House members and killed their re-election in 2010 and now he will have to face the music. The Democrats have the majority of their seats up in 2012 in predominantly Red states. They stand to lose big time in 2012.

For California the outlook is pretty bleak. Brown apparently will be our governor and he will perpetuate the downturn of the State of California he set in motion starting in 1974. The State’s public employee unions will continue to suck the life blood out of California to the detriment to those few remaining taxpayers but more interestingly to their own membership. The unions are forcing compensation and retirement packages on the State and local governments that are no longer sustainable. Their members will eventually discover that what they were promised by the Unions does not exist any longer.

Obama may bail out California again but he will face funding challenges by the Republican controlled House. If you are a California taxpayer, you better pack your bags. If you do business in California, you better pack your bags. The current level of spending is not sustainable and the unfunded liabilities of the State continue to mushroom. For California farmers and for those of you who enjoy the bounty of the harvest from California agriculture, you lost tonight as well. Boxer has never supported a sane water policy for California and has actually sided with the environmentalist to curtail more and more water deliveries to the rich farmlands of California.

The bottom line is that this nation and this State (California) are in for two to four very tough years ahead. At best we will have gridlock in Washington DC. That means that the deficit will continue to grow and the prospect for business may have improved somewhat it won’t be good enough to drastically reduce unemployment in the next two years. Obama is an ideologue and may give speeches about moving to the center but don’t forget his campaign speeches in 2008. Are you going to fall for those same words again? I hope not…

RD Pierini

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