Equally problematic is the announcement of further stimulus measures by Obama in Milwaukee on Monday that the Administration is considering a long-term jobs bill. Despite overwhelming evidence to the contrary, Obama continues to believe that high unemployment can be cured through even more spending.
Reagan and Clinton were reelected due to the positive effects of their legislation. Reagan was acting on principle when he cut taxes while Clinton reluctantly moved to the right in order to allow for economic growth. Obama however, is committed to the liberal ideology and the redistributionary policies that come with it. The new Republican majority will pose problems for the ability of Obama to pass his agenda but this will not be a sufficient excuse. The 2012 election will be a further referendum on the economy and if Obama continues to pursue liberal policies, this will be his downfall.