It is possible – Victor Davis Hanson notes:
… if the Republicans regain the House, the entire Obama redistributive agenda will stall. That stasis will give far more certainty to the business cycle — and probably provide the necessary psychological lift for businesses to start hiring and buying again.
In a weird way, by losing the Congress, Obama may well see the economy rebound — a turnabout for which he’ll take credit, despite the failure of his earlier massive borrowing schemes, which will seem like ancient history by 2012…
The key, for Obama’s economic recovery hopes, is if American business is really sitting on trillions of dollars, waiting for a better business climate to get going like gang busters. I’m not so sure – it seems to me that our banks, for instance, are sitting on their money because they know they’ll have to write down at least a trillion dollars in loans in 2011 and 2012. Meanwhile, other businesses may be sitting on cash because they don’t expect any fundamental recovery and thus just want cash reserves to survive for a year or two of low or non-existent profits.
Meanwhile, our debt hangs over us like a sword of Damocles, ready to cut off our head at any moment. It cannot be emphasized enough that if we don’t get our budget balanced in a few years, we’re going to be facing a complete collapse. And this leaves off the prospect that Europe and China may collapse under their mountains of bad debts – even if we balance our budget, if Europe and China tank it will be hard for us to gain economic traction (though we’ll do better than them, if we’ve balanced our budget).
Can Republicans really tackle the debt while Obama is firing off the class warfare rhetoric about evil Republicans forcing granny to starve? That remains to be seen – it may prove impossible.
But we must try. We must, that is, rescue America even if it means rescuing Obama. And, of course, it may not help Obama – I think a lot of people have already tuned him out and he may have difficulty convincing people that any recovery by 2012 is really due to Obama’s efforts. It is also different, now, because of the New Media…Clinton could triangulate his way in to a second term on the back of GOP policies, but I don’t know if Obama will be able to do that trick, even with a slavishly devoted MSM running cover for him.
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