Tackling fiscal cliff needs Republican support
Barack Obama won, and won rather handsomely?he carried 303 (out of the 509 counted so far) electoral votes, and retained more than 50% of the popular vote. In fact, compared to 2008 election, Romney was able to convert only North Carolina (15) and Indiana (11) red. At the outset, one may conclude that nothing really has changed. With Republicans still in control of the House, the gridlock that has plagued Washington for so long would continue. But this ignores two things. One, what could have occurred had Obama lost; and two, reforms that shall kick into effect in Obama?s second term. In the event of a Republican President, almost all of President Obama?s key legislative initiatives?Dodd-Frank and Obamacare?would have been repealed. However, with this re-election, this Administration, through Obamacare, would preside over the largest expansion of America?s welfare state since Medicare (in 1965), which will put the United States in line with other advanced economies (in providing universal healthcare), and a successful (if slightly messed up) overhaul of financial regulation.
Yet, Washington remains terribly polarised. The ?fiscal cliff?, that is, automatic cuts in discretionary spending and expiry of tax-cuts in the absence of a debt deal, could cause a sudden contraction in the aggregate demand and hence the total output. Obama has already promised a showdown with the GOP in the case of re-election, but, given the history of gridlock of the past two years, the GOP?s ?tea party? wing is sure to be stubborn.
Mitt Romney?s defeat is partially a reflection of the fact that the GOP has become, especially in matters of social and immigration policies, too radical to woo moderates. His stance on abortion, contraception and immigrants cost Romney large swathes of women and Latino voters, both crucial to the Obama victory. But, as of now, the GOP shows little signs of introspection?Charles Krauthammer, arguably the most influential conservative commentator, felt the party was ?doing just fine?, and instead derided Obama for having ?no mandate? is spite of a comfortable victory. This intransigence also spells doom for Obama?s other key initiatives, especially legislation for climate change, which most Republicans consider a farce, and immigration. So, Mr President, we know that campaigning is hard, but it?s time to roll up your sleeves once again, because there is a lot to be done.
