In economics, diminishing returns is the short form of diminishing marginal returns. In a production system, having fixed and variable inputs, keeping the fixed inputs constant, as more of a variable input is applied, each additional unit of input yields less and less additional output. This concept is also known as the law of increasing opportunity cost or the law of diminishing returns. [Wikipedia]
The mid-term election of the US House of Representatives and Senate has just ended and the result is yet to be concluded. The Democrats are anticipated to win the majority of the House and may even dominate in the Senate since 1994.
Try to recall the previous two presidential elections in the US. The Republicans gained the victory easily. It was one of the prime time for the Republicans. In an economics, an economy is said to fall after reaching the peak. Additionally, an economy or a business is asserted to follow the business cycle - "periodic but irregular up-and-down movements in economic activity" (Parkin and Bade). Accordingly, after the up-period of the Republicans, it is probably the time for the down movement.
Reasonably one may argue the lost of the Republicans are due to many factors. I agree with it. I do not have a deep understanding of the American politics. As an outsider, I find that the victory of the Democratic Party does not mean the people truly support them. If it is put on the above economics theory, it will be only explained by the fact that it is time for the down of the Republican Party. I cannot see outstanding attractiveness of the Democrats.
Before the election has begun, some news reports already revealed that one of the strategies that the Dem was using in this election was to criticize the George W. Bush's administration. In particular, the Dem opposed the Iraq War and the corruption. The Dem did not need to emphasize its proposed domestic policy to appeal its citizens. At this point, it is not hard to suggest that it is not about the real strength of the Democrats that gives this result of the election.
I personally believe that while the stronger power or the greater victory a party gains, the more tremendous loss it will finally suffer. To me it is some kind of balance the world is trying to reach. Thereafter the Republicans are quite sealed to be the loser this time. Reading through many news stories, the Rep did not show a high morale to fight in a bad situation. They did not seem to be keen on a victory. It is ambiguous whether they believed they could win anyhow, or they thought they would lose however hard they worked. As I think they are clever enough, the answer will probably be the former.
Bush's term still has two years to go. Some estimated that the winning of the Democrats would slam the brakes on Bush's agenda. It is almost certain that the policy of the Terrorism War will be reviewed. Same as many people, I think the result of this mid-election is very important to the world. The US aggressive foreign policy will probably switch to be modest. It will be interesting to see how Bush will have to wrestle with the Democrats. As the US has led to some wars and foreign conflicts under Bush's rule, there will be a hard time for the US to modify or adjust their diplomatic attitudes. It is yet to know whether the US will keep its strong and hard world leading role. I hope not, as I am one of the increasing number of people who think the Americans are weirdoes.
On the other hand, I do not see the Democrats are strong and good enough to keep the public support. If the party wins only because of the weakening of its enemy, it will not be able to win the other time when the enemy regains its strength. People will see and judge the Democrats. The only way to maintain its power is to make achievements. The Democrats has to construct a good plan to gradually retreat from wars; it has to improve the country's relationship with other countries, such as Europe and the Middle East; it also needs to keep its prosperous economy. Otherwise the Democrats will lose soon.
ps. As a journalism student, I learnt the unhealthy journalism in the US. It is well-known that the reporting in US is usually unfair and unbalanced, with sensationalism and self-censorship for the Republicans. I am curious what the situation will be when the head is changed.
pps. I did not realize I will spend some time on the US politics, since I do not very much like the Americans and I am not very political.
ppps. I always think the economics theories are very philosophical and very useful in life.
