How Will a GOP-Led House Affect Your Pocket?

To say that the transition to a GOP-led House has been tricky is an understatement. Conflict within the Republican party prevented Kevin McCarthy from becoming Speaker for days. It has been a long time since Republican Representatives sided with Democrats on anything this important.

This has led some to worry that the GOP’s victory will be short-lived. The margin is narrow, and any dissent from within the party will make passing laws almost impossible. For people hoping that flipping the House would ease their financial woes, this is troubling.

But is this really something to be concerned about? If not, what effect can you expect the results of the midterms to have on your finances?

A House Divided?

Let’s first speak about the situation with the Speaker. Kevin McCarthy had opposition from a number of ‘Never-Kevins’ within the Republican Party. Does this mean that the House Republicans will be divided in future?

The good news is that we’re unlikely to see Republicans voting alongside Democrats over major issues going forward. There were those who did not want Kevin McCarthy to become Speaker, based on issues they had with his history with Former President Trump (among other things). However, they were not voting against Republican causes.

On the contrary, the worst case scenario was that another Republican would be voted in as Speaker. Representatives weren’t siding with the Dems but rather trying to shape the Republican cause.

With this in mind, let’s take a look at some of the important issues the House will address and see how they’ll affect your pocket.

Economics: Interest Rates and Inflation

The two things most directly affecting Americans economically are currently high interest rates and inflation. Inflation has been extremely high since towards the end of 2021. This has been a major reason for the rising interest rates. Both of these things have made life harder for Americans struggling with the cost of living and with taking out loans.

If you’re hoping for a Republican-led House to change things in this regard, the unfortunate truth is that not much can be done. Inflation is high for a number of reasons that no political party can control. Supply chain issues and the high price of gas are here to stay for a while, leading to high prices all around.

Furthermore, the decisions by the Federal Reserve to raise interest rates are made independently. The Federal Reserve is independent of political interests. Because of the direct impact its decisions have, they need to be made with data in mind, rather than political victories.

There are still worries that we may be heading into a global recession, and a Republican-led House can’t stop that. Are there any ways that the midterm results will actually benefit you financially?

Tough on Crime

A major talking point in the midterm elections was crime levels. Crime has been going up after decades of declines. This led to the GOP committing to be tougher on crime than the Dems. Anyone who has been a victim of a burglary knows how much of an impact this can have on your finances.

You’re still going to have to pay for insurance. A drop in crime will not change the price of a renters insurance quote, at least not in the short term. There is also no guarantee that harsher measures will be effective.

Nonetheless, the likelihood is that crime will go down and Americans will lose a lot less due to break-ins and muggings. A drop in violent crime will also decrease the amount of money people have to spend on getting help from healthcare providers.

Ultimately, a House with a Republican majority can’t work magic. This is especially true as the Senate remains in Democrat hands. However, tougher measures on crime can have a positive impact on your wallet in the long run.