The Tea Party’s opposition to the Obama administration’s stimulus programs will mean less federal support for state and local governments, a hedge fund partner said today.
The Tea Party, which promotes limited government, has stigmatized stimulus spending, Orin Kramer, general partner of New York-based hedge fund Boston Provident Partners LP, said at the Cities and Debt Briefing hosted by Bloomberg Link in New York.
“The federal government, for better or for worse, will be more hostile to support for state and local government,” Kramer said. “State and local governments will be weaker as a consequence, and they will be more of a contractionary force in terms of economic growth.”
The Tea Party has emerged as a driving force in this year’s elections, helping defeat several veteran lawmakers. Tea-Party-backed Christine O’Donnell, a marketing consultant, yesterday beat Representative Mike Castle for the Republican U.S. Senate nomination in Delaware. Carl Paladino, a developer and Tea Party supporter, won the Republican nomination for New York governor.
Earlier, Tea Party-supported challengers upended candidates endorsed by Republican officeholders in primaries in Kentucky and Nevada.
-- Editors: Stephen Merelman, Walid el-Gabry