News / Economy

Wall Street Welcomes Republican Election Victories

New York Stock Exchange (file photo)
New York Stock Exchange (file photo)
TEXT SIZE - +
Peter Fedynsky

With Republican Party candidates winning control of the U.S. House of Representatives in this week's midterm elections, some political observers are expecting gridlock in Washington.  But, a legislative stalemate in Congress might be good for American business.

Tuesday's elections will give Republicans majority control of the House of Representatives in January.

Columbia University political scientist Robert Shapiro says that could lead to stalled legislation as Democrats will maintain their Senate majority.

"Given the fact that with the kind of divided government we have, anything the Republicans try to do in the House will be thwarted by the Democrats in the Senate or in the end by Obama's veto pen," said Shapiro. "On the other hand, anything Obama or the Senate want to do can be readily thwarted in the House."


Traders at the New York Stock Exchange say the market began rising in September in anticipation of a Republican victories in Congress.

Cort Gwon, director of trading for FBN Securities, says political gridlock will help the market in the long run.

"How it's good for business is that the government really can't do much to change the business environment," said Gwon. "They can't really - can't really raise taxes; they can't really put new regulations because the Republicans control the House, so that's very good for business."

Joseph Greco, managing director of trade for Meridian Equity Partners, says the elections sent a signal that the government will not interfere in markets.

"The general consensus is we're not a one-way government at this point," said Greco. "As we know, typically, after a presidential election, midterms are usually more of a shake of the box to make sure the president doesn't have too much power."

Greco says the elections show that many Americans do not want the same answers to political problems recycled from previous administrations - Democratic or Republican.  He says what the government can and should do is improve the nation's infrastructure.

"That's going to need to be in the forefront of policy making and spending for the United States," said Greco. "It creates jobs; it creates technological innovation.  And it offers people who are entrepreneurial to go out and, you know, start these businesses that they grow and become new markets."

Greco says cooperation across Democratic and Republican Party lines in Washington can help the United States use its capacity for innovation as well as its human and financial capital to help avoid market volatility, create jobs and improve America's international position.  

You May Like

Wikipedia Proves Useful for Tracking Flu

Technique gave better results than Center for Disease Control (CDC) and Google’s Flu Trends More

Turkish Law Gives Spy Agency Controversial Powers

Parliament approves legislation to bolster powers of intelligence service, which government claims is necessary to modernize and deal with new threats Turkey faces More

Video Face of American Farmer Changing

Average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Face of American Farmer is Changingi
X
Mike Osborne
April 18, 2014
The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Face of American Farmer is Changing

The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Donetsk Governor: Ukraine Military Assault 'Delicate But Necessary'

Around a dozen state buildings in eastern Ukraine remain in the hands of pro-Russian protesters who are demanding a referendum on self-rule. The governor of the whole Donetsk region is among those forced out by the protesters. He spoke to VOA's Henry Ridgwell from his temporary new office in Donetsk city.
Video

Video Drones May Soon Send Data From High Seas

Drones are usually associated with unmanned flying vehicles, but autonomous watercraft are also becoming useful tools for jobs ranging from scientific exploration to law enforcement to searching for a missing airliner in the Indian Ocean. VOA’s George Putic reports on sea-faring drones.
Video

Video New Earth-Size Planet Found

Not too big, not too small. Not too hot, not too cold. A newly discovered planet looks just right for life as we know it, according to an international group of astronomers. VOA’s Steve Baragona has more.
Video

Video Copts in Diaspora Worry About Future in Egypt

Around 10 percent of Egypt’s population belong to the Coptic faith, making them the largest Christian minority in the Middle East. But they have become targets of violence since the revolution three years ago. With elections scheduled for May and the struggle between the Egyptian military and Islamists continuing, many Copts abroad are deeply worried about the future of their ancient church. VOA religion correspondent Jerome Socolovsky visited a Coptic church outside Washington DC.
Video

Video Critics Say Venezuelan Protests Test Limits of Military's Support

During the two months of deadly anti-government protests that have rocked the oil-rich nation of Venezuela, President Nicolas Maduro has accused the opposition of trying to initiate a coup. Though a small number of military officers have been arrested for allegedly plotting against the government, VOA’s Brian Padden reports the leadership of the armed forces continues to support the president, at least for now.
Video

Video More Millenials Unplug to Embrace Board Games

A big new trend in the U.S. toy industry has more consumers switching off their high-tech gadgets to play with classic toys, like board games. This is especially true among the so-called millenial generation - those born in the 1980's and 90's. Elizabeth Lee has more from an unusual café in Los Angeles, where the new trend is popular and business is booming.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
AppleAndroid

World Currencies

EUR
USD
0.7217
JPY
USD
102.17
GBP
USD
0.5949
CAD
USD
1.1009
INR
USD
60.326

Rates may not be current.