Some people have cheered the result of the election last month in producing a Republican House of Representatives and a Democratic Senate, which means that, together with the continuing Democratic hold on the Presidency, we will have divided government. They believe that this will require both parties to work together, which will lead to a moderate policy, in line with the wishes of most Americans, rather that the extremist policies that result when one party dominates both houses of Congress and the Presidency.
To some extent, this will probably happen. President Obama has already begun moving in a more moderate direction (though he does not have to face a Republican House until next month) in his willingness to compromise on the bill that extended the Bush administration tax cuts, as the Republicans wanted, while also extending the unemployment benefits, as the Democrats wanted. However, divided government is particularly bad in one area: the deficit.
Republicans tend to help solve deficits by lowering both taxes and spending, in accordance with a desire to make government smaller. By lowering taxes, they give the people control of more of their money, while also discouraging the start of new government programs since there is less money to pay for them. By contrast, Democrats tend to help solve deficits by raising both taxes and spending, since they want to start a lot of new government programs of various kinds, so they need the new taxes to pay for them.
When government is divided, we see what happened during the latter part of Ronald Reagan's Presidency: the Republicans succeeded in lowering taxes (which people like), while the Democrats succeeded in starting their new government programs (which also appeals to a lot of people; at least to those who are the beneficiaries of those programs). The deficit ballooned. The same, of course, happened in the latter years of the George W. Bush Presidency, only more so because of the effects of recession. So I'm afraid that controlling the deficit will be a hopeless task.
When Richard Nixon was President, he found a solution: the Democratic Congress appropriated a lot of funds which President Nixon simply "embargoed": he didn't spend the money on the basis that he was simply authorized to spend it, not required to. This got such a bad reputation among Democrats that later Presidents did not do things like that. And anyway, it would not be very likely that this solution would work in the current situation, where the Democrats control the Presidency: it is the President who wants both higher taxes and spending, and he obviously cannot spend money that the Congress does not give him. So what will happen is anybody's guess.
To some extent, this will probably happen. President Obama has already begun moving in a more moderate direction (though he does not have to face a Republican House until next month) in his willingness to compromise on the bill that extended the Bush administration tax cuts, as the Republicans wanted, while also extending the unemployment benefits, as the Democrats wanted. However, divided government is particularly bad in one area: the deficit.
Republicans tend to help solve deficits by lowering both taxes and spending, in accordance with a desire to make government smaller. By lowering taxes, they give the people control of more of their money, while also discouraging the start of new government programs since there is less money to pay for them. By contrast, Democrats tend to help solve deficits by raising both taxes and spending, since they want to start a lot of new government programs of various kinds, so they need the new taxes to pay for them.
When government is divided, we see what happened during the latter part of Ronald Reagan's Presidency: the Republicans succeeded in lowering taxes (which people like), while the Democrats succeeded in starting their new government programs (which also appeals to a lot of people; at least to those who are the beneficiaries of those programs). The deficit ballooned. The same, of course, happened in the latter years of the George W. Bush Presidency, only more so because of the effects of recession. So I'm afraid that controlling the deficit will be a hopeless task.
When Richard Nixon was President, he found a solution: the Democratic Congress appropriated a lot of funds which President Nixon simply "embargoed": he didn't spend the money on the basis that he was simply authorized to spend it, not required to. This got such a bad reputation among Democrats that later Presidents did not do things like that. And anyway, it would not be very likely that this solution would work in the current situation, where the Democrats control the Presidency: it is the President who wants both higher taxes and spending, and he obviously cannot spend money that the Congress does not give him. So what will happen is anybody's guess.
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