Anti-business sentiment a key factor

Now that the Dodd-Frank Wall Street Reform and Consumer Protection Act has been signed into law, the legislation will significantly reshape the playing field in America’s financial capital.

President Obama said the bill will “protect consumers and lay the foundation for a stronger and safer financial system, one that is innovative, creative, competitive and far less prone to panic and collapse.”

Despite Obama’s optimism, the legislation is still highly polarizing. Most Republicans and leaders in the banking sector claim the bill creates a bigger, more invasive government and that it will undercut the competitiveness of the U.S. economy, suppress growth and eliminate jobs at a time when unemployment is high.

Senate Minority Leader Mitch     McConnell said, “The White House will call this a victory, but as credit tightens, regulations multiply and job creation slows even further as a result of this bill, they’ll have a hard time convincing the American people that this is a victory for them.”

The midterm elections will be a challenging test of which party can best capitalize on a sour public mood and populist dissatisfaction with the economy.

With the financial collapse and the BP fiasco, big business is highly unpopular.

While the Democrats have control of Congress and the White House, Republicans are still considered the party of the dollar and as such will have a hard time fending off accusations of not caring about “Main Street America.”

Historically, the first midterm elections of every presidency are costly, with the president’s party averaging a loss of 17 seats in the House.

Democrats will have to market themselves as the party of the people to avoid the losses that have plagued incumbent parties in the past.


E-mail: halderfe@indiana.edu