WSJ: Democrats Have Few Ways to Quickly Lower Prices in the U.S.
After winning the midterm elections, Democrats will gain control of both chambers of Congress on January 3. However, fulfilling voters' main expectation—making life more affordable—will be difficult, writes The Wall Street Journal.
The publication notes that lawmakers' options are limited. Tax and spending decisions take time to yield results, and Donald Trump retains veto power. To overcome a filibuster in the Senate, 60 votes are required, while Democrats currently hold 54 seats. Stopping the war in Iran, which has driven up energy prices, will also be challenging for the new majority.
In the Senate, Democrats are preparing a vote to repeal tariffs against Canada. In the House of Representatives, they aim to restore reduced funding for Medicaid and subsidies for health insurance. However, the WSJ warns that expanding payments without raising taxes could accelerate inflation. Over the 12 months ending in September, inflation reached 3.7%, while wages grew by only 3.1% during the same period.
The party has more room to maneuver at the state level. New Democratic governors have pledged to limit the construction of AI data centers and forgive medical debt.
