Ron Insana: If Democrats stage an upset win in Georgia, it may not be the market headwind you think

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Single party rule has its advantages which, in this case, may surprise many in Washington but will most certainly surprise many, many more on Wall Street.

Well, the conventional wisdom suggests that even if Democrats take control of the Senate, the narrow victory will mean that a Biden Administration will be constrained in setting a new agenda.

The budget reconciliation process, which can be used by the smallest majority, allows any administration to pass large scale programs with a single vote advantage in the Senate, as long as the legislation is deficit neutral … kind of. The Trump Administration, for instance, used the reconciliation process to pass its $1.5 trillion tax cut and managed, somehow, to avoid the requirement that it not increase the deficit.

If, however, the Democrats manage to take the Senate, I would bet that a President Biden and Vice-President Harris, who represents the tie-breaking vote in the Senate, may not feel as constrained as many currently suggest.

 

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