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THE STUNNING VICTORY BY DONALD TRUMP — and the GOP capture of the Senate — was a mandate, and mandates have implications.
THOSE OF US WHO WERE WRONG about the election will now begin a post-mortem — what the hell happened and what’s in the next agenda?
FIRST, IT WAS CLEAR that Joe Biden and Kamala Harris mis-read the voters. Biden and Harris were asleep as millions of immigrants flooded into the country; they were asleep as crime terrified urban America; and they were asleep and in denial over inflation.
IT WILL TAKE MONTHS for the Democrats to come to grips with this loss. The debate will be far easier for Republicans, who also may keep the House.
IN STATE AFTER STATE, TRUMP’S VOTE TOTAL exceeded expectations, and now the GOP will get to spend some of their political capital. Here are issues Trump will confront:
ECONOMY: Trump won largely on the economy; now he will have to offer details of all the tax cut proposals he floated in recent months. Washington lobbyists will be busy in 2025.
GEOPOLITICS: Can Trump quickly end the Ukraine war? Ukraine and Gaza will be daunting, as many Trump supporters call for diminished defense spending. Foreign relations between the U.S. and allies could be shaky; Canada’s Justin Trudeau must be apprehensive.
WILL TRUMP REALLY EXPEL millions of illegal immigrants? The logistics are daunting. We think Republicans in Congress, fearful of a fierce backlash, will agree to a compromise that will water down deportation.
SPENDING RESTRAINT: Trump’s victory was so impressive that he may have the capital to place a freeze on federal spending. Most Republicans would love the political cover and begin working on a debt ceiling increase, which is due in the spring. Fiscal policy may tighten.
MONETARY POLICY: On a wide range of issues, Trump has controversial views. Let’s see if he calls for a presidential appointee on the FOMC.
REGULATORY POLICY: This will be on the back burner with a handful of exceptions. Trump wants more oil drilling and is not shy about calling for strict trade protectionism. Tariffs may rise.
TRUMP AND THE LAW: He will face one huge headache: his pending legal challenges, and the likelihood that his Attorney General will be pressured to pardon him for all past sins. Will Trump prevail in the courts? After last night, don’t even think about challenging him.
Related: Investing in America: Thriving Beyond Election Results
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