Outlook For Mid-Term Elections
10/08/2013 8:00 am EST
Steve Forbes has some bold predictions for the upcoming mid-term elections and also for the gubernatorial races.
SPEAKER 1: I’m talking politics with Steve Forbes. Hi, Steve, and thanks for being here.
STEVE: Good meeting with you, Nancy, thank you.
NANCY: We’re heading toward the mid-term elections. Going to be quite a few changes I think.
NANCY: What do you think is going to happen in some of the gubernatorial elections?
STEVE: Well there are two this year in 2013; my home state of New Jersey and Virginia. I think a Republican is going to win both of those races which will be a good harbinger. Then going into 2014, I think the Republicans will gain control of the senate. I think we’re going to feel a lot of good candidates and probably make some gains in the house. When governor races, some of the very promising ones there, even if the Republicans don’t win I think they’re going to put a real challenge up to people like Governor Brown and others. It’s going to be a good year for Republicans. Then the question will become will we do better in 2016 than we did in 2012 after we did very well in 2010?
STEVE: I think the answer is yes. There is going to be good group running including people who have done some really things out in the statesman field so I think we’re going to get a strong candidate having a very positive program and will be willing to advocate it.
STEVE: Be an advocate.
NANCY: Well, the field is getting thicker these days with the people, no one has really announced yet, but people that they’re banding their names about. I have forgotten about Walker over in Wisconsin. It was kind of interesting. He sort of kind of went back into the background after the big strike issue, so what do you think about him?
STEVE: I think there is a very real possibility. He’ll certain examine it to see if he can put together resources. There will be others; Governor Christie of New Jersey.
STEVE: Is going to be running, Rand Paul certainly give every indication that he’s going to be in the race, former Governor Jeb Bush, Senator Rubio, Senator Cruz is going to be sniffing around to see if there is an opening for him. There will be no shortage of candidates. If you take somebody like Scott Walker who did some very real things, he dealt with a very real crisis.
NANCY: And did it well.
STEVE: People are going to be looking. It’s fine to talk; can you be a doer?
NANCY: Sure. What do you think are going to be the major issues? I know we’re still kind of early here and right now there are a lot of issues with Obamacare, the immigration issue, taxes, etc. How big a part do you think immigration is going to play in that election?
STEVE: It will play a part, but I think more of the focus is going to be in terms of people’s minds is the economy. You know, we may be doing a little better, but it’s still pretty punk.
NANCY: Yes, it’s taken a long time.
STEVE: This is pretty bad stuff. Healthcare obviously huge. Then overseas, the perception that the U.S. weak, that Obama has washed his hands of the world. I mean we’re now having a nasty spat with Russians. Do you think if say Reagan had been in office that Putin would be treating him the way he did?
STEVE: Or Reagan would’ve have reacted the way Obama did in such a personal way? No, people are looking for adults. It’s national security and the economy so people want leadership, but leadership where they feel they have the right principles, they know what they’re doing and they can get real things done.
NANCY: Then what do you think about the employment situation? I mean we are just dragging slowly, slowly every day getting a little tiny bit.
STEVE: The employment situation is a disaster. No small part because of what the Fed has done benefiting bigger companies, that’s nice, but the job creations are \ with smaller companies. The middle class is getting squeezed because of the weak dollar. I love it when the Fed says it’s good to have 2.5% inflation. Do you know what that means?
NANCY: Nobody is making any money.
STEVE: What it means is if you’re making say $40,000 a year you’re going to have to pay another $1000 for expenses; that’s $1000 tax. Who gave the Federal Reserve the authority to tax families like that?
STEVE: So that’s why we’re getting part-time creation. Imagine passing a bill, Obamacare, Abominable Care, where if you have a growing business you have to be careful. I go above 50 people, I suddenly have this hideous expense. Do I really want to grow?
STEVE: This is America.
NANCY: Yeah, I know and do you think that that is the major reason why employers are not going out and hiring people. I mean how much does that play into it or what other factors?
STEVE: That plays into it because you don’t know what the cost of your labor is. That’s rather significant.
STEVE: Especially if you’re a small business. Then you have the uncertainty about regulations. What’s coming down the pike? Suddenly finding you’re tripping on something that you didn’t know was even there. It’s fine to say oh there’s all this cash out there, but it’s going to stay idle until we have an environment where it can be put to work. We have a lot of seeds in the barn, but you’re not going to put it in the ground if it’s frozen.
NANCY: In that environment though it looks like a long-term outlook to me so we’re going to have to suffer through these tiny little increases in climate?
STEVE: Well, I think in 2014.
NANCY: Will be the elections.
STEVE: When people start to see the landscape changing, people are going to say got to look to the future, you can’t just look on short-term horizons.
STEVE: I think things will start to stir in a positive way.
NANCY: Oh good, let’s hope you’re right.
NANCY: Thank you, Steve.
STEVE: Thank you, Nancy.
NANCY: Thanks for being with us on the MoneyShow.com video network.