It will be harder for the next president to pursue grand plans in the wake of this week’s financial meltdown, writes Gerald Seib in the Wall Street Journal. Beyond its immediate impact on the campaign, the crisis has “ripple effects.” The amount of money the Fed has shelled out means there’s less for domestic spending on big-ticket items such as health care.
The Wall Street crisis also reopens questions about deficits and taxes. Though our deficits are likely to skyrocket, a struggling economy is no time for tax hikes. Ultimately, says Seib, the questions raised by the crisis go “to the very relationship between the public and private sectors,” and the next president “will have to lead the country in finding an answer.”