Nearly thirty years ago, Republican icon President Ronald Reagan popularized the policy that begat the phrase “trickledown economics.” His economic policy was based on the theory that tax cuts for the rich would improve business and the benefits would trickledown to the average person.
Well, we are still waiting, or at least those of us who reside in the bottom 95 percent of the country’s tax brackets are still waiting. Ironically, it was Reagan’s main competition for the presidency in 1980 and his eventual Vice President, George H.W. Bush, who dubbed the theory “Voodoo Economics” because he correctly believed that by increasing defense spending while cutting taxes for the wealthy, the budget deficit would skyrocket. And it did.
Now, amid a deepening recession, the collapse of the financial markets and a multi-trillion dollar deficit, America once again has a president who favors tax cuts for the wealthy and increased defense spending. The economy is the top issue for voters eager to replace the current president and it appears that Democrats, seen as stronger on the economy, are in the driver seat to do so.
However, the question remains as to whether the dissatisfaction with the Republican Party’s economic policies will have a residual affect on local races being waged in Queens, New York.
It pains me to write this, but New York, the financial capital of the world, is a microcosm of what is wrong with our economy. We have a $6 billion deficit, out of control spending and the highest taxes in the nation - falling squarely on the shoulders of the middle class.
The collapse of the housing market and sub-prime mortgage crisis, which many experts attribute as one of the root causes of our financial woe, is especially worrisome for Queens, which accounted for almost 75 percent of the city’s first-time foreclosures last year.
Due in large part to the recent economic devastation, Senator Barack Obama has widened his margin over Senator John McCain nationally and in all major swing states. In New York, Obama’s lead has grown to an astonishing twenty two points. With the economy surely on the mind of most voters come Election Day, it stands to reason that Democrats running in down-ballot races will also receive a boost.
In the borough of Queens, two key races which may determine the fate of the State Senate are heating up as the economy cools down. City Councilmembers Joseph Addabbo Jr. and James Gennaro, both Democrats are challenging longtime Republican incumbent State Senators Serphin Maltese and Frank Padavan, respectively. New Yorkers dissatisfaction with the struggling economy is likely to play a pivotal role in the outcome of both races.
In Maltese’s district, voter registration of among minorities has risen to nearly 30 percent. With Obama leading the ticket, the minority component of the district is expected to turn out in record numbers, many of whom are likely to support Addabbo. Further, the minority and new immigrant population comprises a substantially high number of first-time homeowners, who if the high Queens’ foreclosure rate continues, are at a greater risk of losing their homes, with the blame falling on the Republicans more so than Democrats.
In Padavan’s district, Democrats now outnumber Republicans by a staggering 9-1. Though Padavan has always enjoyed cross-party appeal, anger over the economy and the decided voter enrollment advantage puts Gennaro in a significantly stronger position than challengers who preceded him. This will be an interesting race to watch and see how much pull Obama’s economy-fueled engine has on local races.
I am not advocating a position that the Republicans nationally are fully culpable for the downward economy. Democrats have controlled Congress for the past two years and share some responsibility for our troubles - we all do when times are tough. However, from a political perception standpoint, Republicans have received an overwhelming portion of the blame in almost every poll conducted over recent weeks.
People often vote their pocketbooks; and this year will prove no different. In 2008, Democrats will try to capitalize on Reagan’s theory of trickledown economics, hoping Obama’s strength on the economy will benefit Democrats in local races.
NEWS & NOTES:
Both Councilmembers James Gennaro and Joseph Addabbo received the endorsement of Governor David Paterson in their election bids against Senators Frank Padavan and Serphin Maltese.
Gennaro also added the United Auto Workers Union to his list of endorsements.
Maltese, locked in a close battle with Addabbo announced his campaign raised a total of $1.15 million, including almost $550,000 since July 16.
