Should We Be Pessimistic or Optimistic?
I watched the news on television last night for the first time in months. Indeed, I’m watching it this morning. The question I have is the title of this post: should we be pessimistic or optimistic about the Republican win last night?
On the economy, I’m a pessimist and that might be bad for Obama. That’s not to say that the Republicans actually have anything to offer, because they don’t. It’ll be more tax cuts (expansionary) and perhaps some spending cuts (contractionary), but nothing that involves cutting defense, homeland security, etc. Obama’s (lack of) negotiating skills makes me even more pessimistic. He gave Republicans tax cuts in advance in the stimulus, even though it earned him few Republican votes, and spending is more stimulative than tax cuts.
Obama passed a Rube Goldberg health care bill, but Republicans are kidding themselves if they think they can repeal it. The Democrats still have the Senate, as well as the filibuster, and President Obama still has the veto. I don’t see a lot of realistic room for improvement.
In short, I’m pessimistic.