Business Likes Prospect of Split Government -- and More Gridlock
- Continuation of status quo looks like good news for companies
- Technology, health-care companies may avoid sweeping reform
Investors, executives and lobbyists had feared the U.S. election would hand Democrats both the House and Senate. But with Capitol Hill now heading toward what looks to be another four years of divided government, big businesses that prefer congressional gridlock to sweeping reform are breathing a sigh of relief.
Republicans are well positioned to keep control of the Senate as Democrats hold the House, though it’s not yet set in stone with some races still unresolved. A likely split legislature would dim the prospect of new, widespread regulation -- including increased corporate taxes -- that could impact the technology, health-care and retail sectors, among others. That helped buoy the market on Wednesday in the face of continued uncertainty about the presidential outcome.