how will the midterm elections effect the economy?

Answer 1

It will affect it very positively, over the long haul, provided the dems get their agenda pushed through at some point. Here is why; basic economics.

First off, here is a fact; Despite the "pro-business" mantra of most republican administrations and congresses, and most corporations supporting republican candidates for this reason, the stock market actually does better on an annualized basis under a democratic president or congress.

Second; the war has been the most obscenely needless expense in the last 30 years. The republicans that were in control seemingly forgot one of the most important republican issue, and THE most important non-morality-issue Republicans stand for. Its the basis of the existence of the party; "Smaller government and lower spending." With the US going the way of Orwell's 1984, suddenly the Democrats were the more fiscally responsible choice to make for people who vote with financial reasoning in mind.

Last; odds are good that the dollar will increase in value against foreign currencies going forward, as people who have been betting in the dollars continued fall against the world basket of currencies because of bad fiscal policy and continued printing of useless fiat currency to finance the war, will likely cover their bets, bringing some value back as people grow more positive the reckless spending will stop. See, to finance the war, the government has been printing money as if that has no effect on the value of our currency, and they do this in the form of debt, (not actual "printing" of hard currency, but for the sake of argument, we'll call it "printing") effectively decreasing the value of a dollar for every dollar they "print". As the perception grows that the war will end sooner rather then later, and the Dems will reign in reckless spending and, even if necessary raise taxes to ensure we stop borrowing from ourselves, the value of the dollar will increase, as there will be less and less of them for every dollar that gets paid off, even if its just on paper.

And because of market speculation, this will begin to happen well before any change in policy actually occurs.

Finally, because of the increasing value of the dollar, it will be able to purchase more on the world market, bringing down commodity prices for oil, gold, and anythign else we buy from other countries to keep our country running. Cheaper commodities means more money in consumer and coproate pockets, which means more spending, and more purchasing, and less consumer debt, which in turn causes more wealth creation. A dollar can be spend a hundred times and taxed a hundred times, and still be a dollar. But that dollar brought in more revenue the more it was spendt. More revenue = stronger nation = better economy overall. Plus, if history holds true, people's retirement and investment portfolios will see better increases, creating more wealth and a better standard of living for retirees, as well.


********Edited: On a side note, I must say I'm surprised that somebody gave my answer a thumbs down *and probably more to come now) --- y answer is derived from *actual* facts and historical data, along with a knowledgable explanation which, whether you like it or not, is not an outcome I predicted because I hate republicans, or love democrats, or both, (as those are all not true, I hate the concept of the political party altogether,) but rather assembled using an understanding of macroeconomic policy, with at least enough education behind my answer to explain why in the grand scheme of things, this change is more likely to be good then bad. You people are so partisan it absolutely makes me vomit.

Answer 2

I am hoping that the moderate dems will lend a little sanity to the rabid democrat liberals and be able to work with the republicans and get some things done. I am afraid that the infighting will be worse than ever and nothing will get done and the citizens will pay big time.If the former happens then the economy will be OK. If the latter happens the economy will tank.

Answer 3

The Dow will suffer in the short term but probably rebound. I don't think much will change. The Democrats will spend as much or more than the GOP did (it just goes to other pockets). Historically, the economy revs up because of increased Democrat spending until their tax increases start hitting people. Since they probably won't get any through a GOP administration, I see very little being accomplished and in '08 everyone will still be finger-pointing about who is the "real obstructionist".

Answer 4

That is a popular scam in the stock market. You start with a lot of predictors and half make a prediction each way. The half that loses disappears and moves on, the half that is accurate brags about it and makes another prediction. The process continues until a handful of people make several predictions correctly while the others all got dismissed. These people who made random correct predictions are used to pump a stock.

Answer 5

Man, I thought the Dems were the "Compassionate and Caring" party...with all the bashing of Bush, that's hard to see.

Anyway, with a Dem congress, they're going to try to make us close to communism.

What I mean is this:

1. Raise minimum wage - what this will do is give more money to the poor people. The raise in the minimum wage will allow the owners of homes whom rent to low wage receiving people to raise their rent rates because "they have more money to afford it now". Then, the minimum wagers will be "poor" again, causing another raise in minimum wage, which will continue to bring the wage closer and closer to that of doctors, lawyers, and heck, even military members. Then, they'll cut the military because you can get a better, minimum wage job on the outside. I could be wrong, but it seems that's how economics work.

Answer 6

Poorly.

Unemployment is extremely low (under 5%), the government is taking in record revenues, the stock market is booming, and all traditional indicators are positive.

Yet, the ignorant masses decide that they want "change." I wish that only the people who voted Democratic would be punished by the actions of our representatives, but, unfortunately, they represent all of us whether we voted for them or not.

Democrats will raise tax rates and produce less income. It happens over and over again, but they don't learn.

Sigh...

Answer 7

Taxes will probably go up! Iraq will become a worse place than it is and world stability will be shaken a little which will lead to higher oil prices and the price for goods, etc....but overall, not much the way the Dems haven't said how they will change things...just empty words!

Answer 8

Bush and his cabinet will now bomb the economy to try to make it look like the Democrats are not good leaders.

Answer 9

stock market futures already fell this morning and if they win the senate they expect them to fall alot more.

Answer 10

well, seeing as the dems CANT do worse than the state of things now, i dont see it effecting it negatively. they will be there to stone wall the republicans whenever they want to waste anymore money.