https://www.wsj.com/articles/the-nancy-pelosi-method-1541635347
Equity markets rallied Wednesday on the expectation, or maybe the hope, that divided power in Washington will mean two years of policy gridlock. That is probably the best possible outcome of a Democratic House, though on Wednesday President Trump opened the door to anti-growth policies.
With a handful of House races undecided, Democrats appear to have won a 12 or so seat majority. While that’s narrow, Democrats under Speaker Nancy Pelosi have shown they march in unison. She doesn’t have a Freedom Caucus.
Democrats will start by unleashing multiple investigations into all things Trump to tarnish the President and his family as corrupt and impeach him if they come up with enough material. Expect two years of leaks about Mr. Trump’s tax returns, business dealings, and his Administration’s contacts with business. The GOP’s Senate gains after the political assault on Brett Kavanaugh would counsel restraint on impeachment. But the left and Democratic presidential candidates may insist on it.
As for policy, Mr. Trump will need Mrs. Pelosi to pass Nafta 2.0, raise the debt ceiling and negotiate a budget. She will try to extract policy concessions, such as a tax increase to pay for public works. At his Wednesday media circus, er, press conference, Mr. Trump opened the door to trading an “adjustment” on tax rates for Democratic support for a middle-class tax cut. Don’t be surprised if Mrs. Pelosi jumps on the offer, which would tar Mr. Trump as a tax raiser and hurt the economy.