The United States midterm congressional elections are a measure of the degree to which an American citizen is satisfied with the performance of the American government.
According to the results of the public opinion poll, the attention of American voters will be focused mainly on the economy, especially since the most important problem facing the United States is inflation, followed by jobs, and then the economy as a whole.
The midterm elections, which will be held tomorrow, Tuesday, will decide which of the Republican and Democratic parties will control the two houses of Congress and rule the major states.
It is reported by CNBC. Report herLast year, Americans looked forward to a return to dining, travel and special occasions, but soaring prices in 2022, from eggs to airline tickets, have shattered those dreams.
She pointed out that Americans may be divided on many issues, but they all seem to agree on issues related to money and how the government handles economic problems.
The following are the most important economic problems facing the United States at the present time:
1. High cost of living:
US annual inflation slowed to 8.2% y/y in September 2022 from 8.3% in August last year, but still above expectations.
Growth in Shelter, Food and Medicare was the largest of many consumer price groups, with food prices up 11.2% in September 2022.
While energy group prices rose 19.8%, including an increase in gasoline prices by 18.2% during September, year on year.
With inflation rising, the US Federal Reserve is raising interest rates to curb inflation, but voters want Congress and the White House to step in.
Change in personal income has historically been one of the most reliable predictors of elections, said Stephen Ansolaber, a Harvard professor of public administration and an expert on elections and politics.
Despite rising incomes, inflation reduces them in real terms, and this is what hurts the Democrats, according to Ansulabhir, and said that “the voter asks, am I better?”
2. The possibility of the US economy entering a recession:
Although the US economy grew in the third quarter after declining in the first and second quarters, voters and pundits are not optimistic that a recession will be avoided.
There have not yet been mass layoffs in the US, although 91% of executives expect a recession next year, according to a KPMG survey conducted from July 12 to August 24, 2022.
Despite reports that U.S. administration officials last month began weighing plans to tackle the recession, U.S. President Joe Biden welcomed third-quarter GDP reports (which showed growth) and insisted Republicans would try to undermine progress.
The Federal Reserve continues to raise interest rates to counter inflation, but this rate hike could push the United States into recession if higher borrowing costs could dampen demand too much.
Even if the Federal Reserve is technically responsible for the country’s plunge into recession, voters are likely to look to their elected leaders for solutions.
3. Fluctuations in the markets and exchanges:
The stock market doesn’t give a complete picture of the economic situation in the US, but Wall Street’s numbers certainly matter to voters investing in the stock market.
The stock market will continue to rise and fall until there is a clear picture of what the government is doing. “Tax reform and changes in the funding of social programs such as food stamps and Medicare could affect consumer budgets and lead to more uncertainty on the market. ,” says Stephen Ansolabehir of Harvard University.
“There are things Congress shouldn’t do, but they can do in terms of creating a more stable situation. What Wall Street wants is certainty. They want to be able to anticipate what Congress will do in terms of budgets and taxes,” added.
And, as the Washington Post quotes, this stability may seem difficult to an expert. If the Democrats lose the House of Representatives, Congress could brace for another debt ceiling showdown that could threaten to shut down the government.”
The war in Ukraine, a new wave of COVID-19 and climate change could also slow or reverse the full recovery of the economy, so voters in the United States must decide who will best address these issues.