{"id":2234,"date":"2010-11-03T20:36:38","date_gmt":"2010-11-04T00:36:38","guid":{"rendered":"http:\/\/www.jasonapollovoss.local\/?p=2234"},"modified":"2018-08-17T09:14:16","modified_gmt":"2018-08-17T13:14:16","slug":"the-elections-will-not-change-much-of-anything","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/11\/03\/the-elections-will-not-change-much-of-anything\/","title":{"rendered":"The elections will not change much of anything"},"content":{"rendered":"

Most of the mid-term election results in the United States are now in.\u00a0 What can we expect now that the Republican party has taken control of the House of Representatives?\u00a0 What can we expect now that Democrats have lost the ability to solely dictate the legislative agenda?<\/span><\/p>\n

My answer: more gridlock.<\/span><\/p>\n

I have been talking for the better portion of the year now about the “game of chicken” that has existed between scared, non-spend thrift consumers, and scare, non-hiring businesses.\u00a0 I have argued that one of the ways to fracture this paradoxical system is for an outside entity, like Congress or the Federal Reserve, to influence the system from outside the system.\u00a0 I have highlighted the fact that the Federal Reserve already has interest rates in the United States at, or near zero.\u00a0 Basically to borrow money right now is free.\u00a0 Yet, despite that, very few folks are actually borrowing money to finance their “genius” ideas that might lead to economic growth.\u00a0 That leaves Congress.<\/span><\/p>\n

Congress is now more gridlocked than it was before: the House Republican vs. the Senate Democrat.\u00a0 Republicans expecting a big move toward lower taxes and a pro-business environment are likely to be undercut by a recalcitrant Senate.\u00a0 Democrats expecting the end of the world because they no longer hold both houses of Congress are equally wrong.\u00a0 For a law to pass both houses of Congress must approve the change.\u00a0 Now no one has an incentive to work with the other party.\u00a0 Two years from now both can point fingers at one another for having been the obstacle to change.\u00a0 For the economy, this means that there is no external positive force to break the logjam.<\/span><\/p>\n

Unfortunately, negative external forces may impact the economic system.\u00a0 There may be another severe terrorist attack.\u00a0 There may be another massive natural disaster.\u00a0 There may be additional economic shocks to the system, like a Greek bond default.\u00a0 And so forth.\u00a0 In my opinion we are worse off after the mid-term elections as investors than we were before.\u00a0 The reason is what I think will be insurmountable gridlock.<\/span><\/p>\n

All of this means that the economy is going to have to innovate itself out of its slumber.\u00a0 And that means that it is going to be many years until it all\u00a0feels<\/em> right in the world again.<\/span><\/p>\n

Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Most of the mid-term election results in the United States are now in.\u00a0 What can we expect now that the Republican party has taken control of the House of Representatives?\u00a0 What can we expect now that Democrats have lost the ability to solely dictate the legislative agenda? My answer: more gridlock. I have been talking […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-2234","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/2234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=2234"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/2234\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=2234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=2234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=2234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}