Eyes on Georgia Senate Runoff in the US... Is a 'Blue Wave' Possible?

If the Democratic Party Wins Big, White House and Both Houses Controlled
Concerns Over Government Dysfunction if Republicans Win Even One Seat

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The world’s attention is focused on the Georgia Senate runoff election that will determine the majority party in the U.S. Senate. If the U.S. Democratic Party wins a landslide victory, it is expected to achieve a 'Blue Wave' by controlling the White House as well as both the Senate and the House of Representatives, thereby dominating national governance. However, if even one seat is lost to the Republican Party, it is anticipated that President-elect Joe Biden’s future governance will face significant challenges. In particular, the U.S. economic sector, including Wall Street, is reportedly concerned that a Democratic Blue Wave would lead to increased corporate taxes and strengthened regulations on various businesses.

According to the Washington Post (WP) as of 12:17 a.m. local time on the 6th, in the Georgia runoff election for two Senate seats, incumbent Republican Senator David Perdue is leading Democratic candidate Jon Ossoff by only 1,208 votes, with both candidates tied at 50.0% support. Meanwhile, the race between Democratic candidate Raphael Warnock (50.4%) and Republican candidate Kelly Loeffler (49.6%) shows a gap of 35,802 votes. With an extremely close contest continuing and many ballots yet to be counted, it is expected that the winner will only be determined in two to three days.

In the U.S., attention is focused on whether the Democratic Party, which previously won the presidential and House elections, will also secure control of the Senate to achieve a Blue Wave. According to NBC, if the Democrats win both seats in the Georgia runoff, the Senate will be evenly split with 50 seats each for the Democrats and Republicans. In this case, Vice President-elect Kamala Harris would become the Senate President, enabling the Democrats to take control of the Senate, making the Blue Wave scenario a reality.

However, if the Republicans win even one seat, the situation changes. From that point, the Senate is expected to act as a check to prevent President-elect Biden’s unilateral rule. Various economic, social, and environmental pledges by Biden may face difficulties passing through the Senate, and confirmations for key senior appointments may also be hindered, leading to governance difficulties.

Wall Street is actually concerned that a Blue Wave could lead to economic growth slowdown due to increased corporate regulations. CNN reported, "Wall Street has so far believed that no party would firmly control Washington, which was seen as positive because it could limit the aggressive regulatory policies of the Biden administration. This has contributed to the stock market’s upward trend."

This content was produced with the assistance of AI translation services.