The Kevin McCarthy Saga: The Rise of the Far Right

The recent gridlock for Speaker of the House of Representatives has finally ended with Rep. Kevin McCarthy being chosen after fifteen rounds of consecutive voting. This unprecedented event in American history shows that the political situation in America is not due to the traditional Democrat v. Republican standoff. Instead, it is due to the increasing “polarization” of U.S. politics. After Donald Trump’s election as president back in 2016, the “Trumpists” within the G.O.P emerged as the dominant faction in the party. Although Trumpism isn’t just a far-right, ultra-conservative ideal stemming from the current president`s followers, some of its supporters have made it clear that they can be ultra-conservative. After his defeat in the 2020 Presidential election and after the January Sixth attack on the American Capitol, the former president left politics. Although Representative McCarthy is considered a pro-Trump member within his party, albeit with a moderate stance, this isn't enough for the far-right factions closely aligned with Trumpism within the G.O.P. The “Freedom Caucus” faction, considered the far-right, ultra-conservative element within the Republican Party, has clarified that they must be satisfied. Representatives like Matt Gaetz and others showed their adamant objection to the newly elected speaker by being most opposed to the election of Rep. McCarthy to the speakership through their votes, which nominated other Republicans like former President Trump or Rep. Byron Donalds. Finally, after McCarthy offered significant concessions to the “Freedom Caucus” faction, he was elected, albeit on shaky grounds, as Speaker. However, this is expected to strengthen the ultra-conservatives in the House, as McCarthy had to make significant concessions for their support. As the ultra-conservatives gain more power, it is clear that this “polarization” in American politics, especially for the G.O.P., would continue to occur at an increased speed.

On the 6th of January, 2023, Kevin McCarthy, a Republican, was elected speaker of the House. BBC News noted that the House Speaker holds substantial power and is the most powerful position in Washington. . Additionally, BBC News also stated that McCarthy might influence the president's agenda, stymie opposition, and lead his party's legislative initiatives.. His general positions are as follows: He supports reduced taxes, looser government regulations, and national healthcare system reform. Furthermore, he is in dispute with President Joe Biden regarding raising the debt ceiling.. A debt ceiling is a legal limit of money Congress can borrow, and BBC News reported that McCarthy strongly urges Congress not to increase the limit. According to the New York Times, the federal government has accumulated a national debt of $31.4 trillion, since 2000 . If the ceiling is not raised, the Treasury Department won’t be able to pay all the country’s bills on time. If it gets presented, however, the U.S. might risk defaulting on its obligations or having its credit ratings downgraded, like in August 2011 (BBC). This conflict of ideas between McCarthy and Joe Biden illustrates the opposite economic impact of the two policies, market-based supply-side policy and interventionist supply-side policy. In this case, McCarthy strongly values the market-based supply-side approach, which aims to simultaneously achieve rapid economic growth, price stability, and better employment. This policy does not significantly affect the government budget. This is a conspicuous constraint of interventionist supply-side policy. However, this policy can result in an income inequality problem by making the income distribution system less equal. The reason is the following. Since the wealthy enjoy capital gains and earn most of the interest income and business profits, tax cuts in these areas will affect rich people by increasing their disposable incomes more than they will affect low-income groups. Therefore, while political transformations generate positive outcomes in the government budget, they can negatively affect equity, which will increase public complaints.

The Speaker of the United States House of Representatives sets the agenda for the House of Representatives and oversees legislative work. Member of the republican party, Kevin McCarthy, was elected as the new House Speaker after the 15th ballot. The speaker election resulted over a series of days beginning on the first day of the 118th Congress. Among the 428 valid votes, McCarthy received 216 votes, beating the Democratic Party's candidate for the Speaker of the House of Representatives, Hakeem Jefferies (212 votes). Experts expect the Republican takeover of the House of Representatives will be the turning point of American business. Since there was a rapid rise in the U.S. consumer price index, the Fed continuously increased the interest rate. Although it is gradually stabilizing the inflation and economy, there is massive damage to U.S. consumers and firms because of high interest. However, a House of Representatives member, McCarthy, strongly supports lowering taxes and government regulations. This would change the stance of consumers and firms by increasing their confidence. Then, this would positively affect U.S. businesses as they start economic activities and spend money. From the business perspective, this change is causing a significant impact. McCarthy’s appearance in U.S. politics creates anticipation for a new flux of domestic and worldwide changes. As for Korea, it is expected to bring a broader trading relationship with America. Kevin McCarthy had positively evaluated the Korea-U.S. Free Trade Agreement (FTA), which would lead to the expansion of U.S. beef exports-considering the significance it has in trading. Coaxing the barriers to open the Korean market to the U.S. may bring export opportunities but also calls for competition. Such possibilities create hesitance to greet McCarthy for the Korean economy.