A Referendum on the Budget Deficit

How Republicans managed to sweep the floor in the 2010 Congressional Election

According to the Gallup Poll, 40% of the American public view the federal debt as one of the top threats to the U.S. There is no doubt that the budget deficit greatly fueled the fire in this year’s campaign. Republicans were quick to point fingers at their opponents, who had a hard time standing their ground. As a result, Republicans picked up close to 60 seats in one of the most dramatic political realignments in history. How did Republicans, in an off-year election, secure a strong majority in the House and leave Democrats with only a margin of control in the Senate? How did Democrats end up as political scapegoats of the 1.3 trillion dollar budget deficit?

Recall, for a moment, the 2008 Wall-Street bailout (officially known as the Troubled Asset Relief Program, TARP). Although the bill was passed during the Bush Administration, Obama, unfortunately, inherited the blame for bailing out the rich and risky. Democrats were forced to distance themselves from the president and the bailout in the mid-term elections. A few extra-cautious Democrats even claimed to have voted against the bill even though they did not take office until 2009. The electorate seemed to have forgotten that both houses agreed to pass the Wall-Street bailout. Harvard economists who have thoroughly examined the after-effects of the bailout also agree that the economy would be worse off now had the government not stepped in. But what exactly was behind the voters’ psyche?

Enter anti-government spending and pro-tax cuts Republicans. Although there has been evidence of the bailout turning up profit, the prevailing theme in this year’s election was to denounce the federal debt. While Republican candidates campaigned on decreasing government expenditure, Democrats, in the past two years, championed for healthcare reform and the stimulus package – more big-ticket spending items.

The problem lies therein: the disconnect between voters’ ideal and their reality. In the eyes of the public, Democrats are driving the economy into the ground – and straight into the pockets of tax-payers. Republicans, though making two contradictory claims, promise a win-win situation.

Slowly but surely, the economy is on the road to recovery, in a large part due to the “big government” spending for which the Democrats were voted out of office. But recovery came too late. Now it seems the newly crowned kings of the House will get all the glory. According to The New York Times, Republicans are catching the “political wave” right at an economic upturn.

Tough luck, Democrats. This year’s election was certainly a referendum on the budget deficit. And the Republicans’ marketing strategy worked its magic.