The Republican Party of US President Donald Trump fared far worse than many pollsters predicted in Tuesday’s midterm elections. The Democratic Party took control of both the House of Representatives and the Senate, a blow to Trump who has two more years in office and will now have to co-exist with the Democrats. The US Congress is a bicameral legislature which forms the legislative branch of the US federal government and now with the Democratic Party in control, Trump’s remaining two years in office will be an uneasy arrangement with them.
What happens in the US will be watched globally given that its policies impact the rest of the world as a whole. Trump’s tariff policies, hardening immigration policies as well attacks on Iran have caused much more than heartburn for many countries. The economic woes faced by the US public caused largely by the Iran war led to heavy losses for Trump’s party, according to media reports.
Sri Lanka is among many countries which have had to face the brunt of President Trump’s policies, many ad hoc and without consideration for the possible fall out. The Democratic Party being in power may not change US policies drastically but at least if this would lead to more negotiations to settle the conflict with Iran, it would be a great sigh of relief for the world.
The incoming result of the US midterm elections figured in the Sri Lanka parliament also yesterday with Opposition Leader Sajith Premadasa advising the Government to learn a lesson from the election results.
“The people of the USA have rejected the Trump administration because of the suffering they had to undergo. The people of Sri Lanka are also suffering. The Government should take note of this situation,” Premadasa said.
The Government is unlikely to take Premadasa’s advice seriously, but what he has stated is a harsh reality from which there is no escaping. People across the country are feeling the burden of the economic hardships that are piling up on them. Along with the regular fuel price hikes there are moves to increase electricity cost as well. These are on top of taxes that people have to pay all the while their incomes remain stagnant. The Government has announced a pay hike for the public sector in the Budget which will be presented late this month but there are millions who work in the private sector or engaged in informal sectors who continue to work on merger salaries with little prospects for salary hikes. This is why it is crucial that the cost of essential goods and services be reduced to give the people a breather.
The Central Bank of Sri Lanka Governor Dr. Nandalal Weerasinghe recently said that essential economic policies must be implemented regardless of whether they are popular with the public. Speaking at a lecture at the University of Kelaniya, he noted that the country may need to increase taxes depending on economic requirements, despite public opposition. Looking at it purely from a fiscal viewpoint; he is correct but how much longer will people be able to withstand economic hardships? This is the question that the Government needs to look at carefully because the political fallout if this situation continues is unpredictable.
Over the past weeks in Europe in particular, thousands of people have taken to the streets protesting against their governments due to the high cost of living and the lack of funding for education and other public centric sectors. Even the most stable of governments are shaken when the public direct their anger at those holding office.
“It is the economy, stupid” was a political catchphrase coined by one of former US President Bill Clinton’s managers during his election campaign in 1992. Four little words but it tells the whole story of eventually what swings voters. If people’s personal financial well-being is unsatisfactory, then all the mega projects and loud speeches will do little to appease them. A lesson which the Government should also heed.