Editorial: The Election and The Economy
The conservative agenda will have a negative impact for Hispanics
The American people’s frustration with the economy took conservatives to the polls, left liberals at home and made Republicans win the Senate majority.
The debate about the economy during this election was won by the Republican vision of creating new jobs through to the construction of the Keyston XL pipeline, deregulation of federal private sector standards, tax cuts, welfare cuts to balance the budget, and crippling Obamacare.
The implementation of such agenda following the Republican win would have a devastating impact among Latinos and low-income communities.
Obamacare, for example, is being implemented with notable success —after a bad start— but its funding through a medical device tax is now in jeopardy.
As for tax cuts, Congress will focus on lowering the highest rates, which will have the real impact of reducing federal revenue. This will cause a deficit that, following the Republican thinking, is resolved by their other priority — reducing social spending.
This will cause harm on individuals earning minimum wage who must supplement their income with federal aid, since the possibilities that the new Congress will raise the federal minimum wage are remote. Ironically, in spite of staunch Republican opposition, voters in many red states supported proposals to raise the state’s minimum wage.
The Republican economic agenda won’t solve the job problem. For example, unlike the GOP’s central job strategy, bigger demand, not tax cuts, is what encourages private sector hiring.
It will all depend on the will of the Republican Congress and the White House to find solutions to what worries voters.
Otherwise, the frustrating legislative stalemate won’t have any positive impact on the economy. That would only increase a discontent with the current status, making it possible to turn the 2014 win into a 2016 defeat.
