The 4th of July Is A Good Time To Jump Start Election Campaigns
Friday, June 30, 2006SUSIE GHARIB: The Fourth of July means cookouts and fireworks for American families. For members of Congress, it`s a chance to work the hometown crowd in an election year. As lawmakers head home to campaign, our Washington bureau chief Darren Gersh reports that investors may also want to keep a closer eye than usual on the political landscape.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Congressional Republicans spent much of this month talking up what they call a values agenda, everything from protecting the flag to banning gay marriage. Political analyst Charles Gabriel calls it red meat for the conservative base.
CHARLES GABRIEL, SR. WASHINGTON STRATEGIST, PRUDENTIAL EQUITY GROUP: And it is exactly that Republican base that the president has suffered with in the last few months and has probably led to the erosion that led his polls really to drop below that mid-40s level down to the 30s level.
GERSH: Following the death of terrorist Abu Musab al-Zarqawi, Republicans believe they have finally gotten some momentum on their side. Former Majority Leader Dick Armey says his party would gain even more by getting back to issues Republican voters care about most, things like tax reform, immigration and Social Security.
DICK ARMEY, CHAIRMAN, FREEDOM WORKS: They`re not entertained by, they`re not amused by and they don`t appreciate the Congress being involved on the floor of the House and Senate with what`s in fact clearly and obviously political activity.
GERSH: Democrats head into the Fourth of July with polls showing their voters are more energized than Republicans, but they are still struggling to craft a message, this week replacing the slogan together we can do better, with one promising quote, a new direction for America.
REP. NANCY PELOSI, MINORITY LEADER: Putting the common good of all Americans first for a change.
GERSH: Democrats think issues like healthcare, gas prices and the minimum wage will help them retake Congress in November. Armey argues this election will not reverse the Republican revolution of `94.
ARMEY: My belief is right now that the Republicans will hold the House and the Senate largely because the Democrats can`t find a message that has standing and resonance with the American people. GERSH: But there is no denying Democrats are riding a wave. The question is, how big will it be?
GABRIEL: I think you could have an early starting gun to the focus on the elections, and it could have some important investment implications for pharma, health care, energy.
GERSH: One key measure for investors to watch, the number of close House races. The influential Cook political report now counts 35 competitive House Republican races, almost double the number a year ago. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.
