The presidential race is tight between Barack Obama and Mitt Romney, but whoever wins the election might wish he hadn't. There is a number looming economic issues that will greatly trouble the next president.
The presidential race is tight between Barack Obama and Mitt Romney, but whoever wins the election might wish he hadn’t. There is a number looming economic issues that will greatly trouble the next president, according to the latest Associated Press Economy Survey.
The survey gauged the views of 31 economists to see what issues the next president will have to face during his four-year term. Among these ills are things the president won’t even be able to do anything about.
The current troubles in Europe are expected to persist deep into the next presidential term, according to the survey. This weakened European economy will greatly affect the demand for U.S. exports, leading to a loss in jobs.
In fact, more than half of those economists surveyed say that the worst is yet to come for Europe. And while they give high marks to the America’s Federal Reserve Chairman Ben Bernanke, they believe that Mario Draghi, president of the European Central Bank, will be more crucial to the global economy.
However, another problem is much closer to home — a divided Congress. So far Congress has failed to reach a deal to prevent tax increases and spending cuts. There are concerns that if those measures go into effect that it could send the country into another recession.
On top of that, the president will be dealing with the chambers in opposing hands. According to the AP, polls suggest that Democrats will hold control of the Senate while the House will stay in Republican hands.
The economists survey forecast that the economy will remain weak for the rest of 2012, but should pick up in 2013. And while stronger economic growth will boost hiring, a slight majority of respondents predict that average pay will continue to trail inflation for the next three years.