Democrats Take Control in the 2026 US Midterm Elections
In the November 6, 2026 episode of the Martin Wolf on the World podcast, Financial Times chief economic commentator Martin Wolf engaged in a detailed discussion with Nobel Prize-winning economist Paul Krugman. They analyzed the Democrats’ victory in the US midterm elections, the implications for Congress, the ongoing threat of authoritarianism, budget conflicts, and prospects for restoring trust in American institutions.
Following the 2026 midterms, Democrats hold majorities in both the House of Representatives and the Senate. Nationwide, they outpaced Republicans by roughly 13 percentage points. Notably, Latino and Black voters shifted their political loyalties significantly compared to the 2024 elections. According to Krugman, key voter concerns centered around corruption and economic issues, which heavily influenced the election outcomes.
“When voters are asked about their top priorities, the economy consistently ranks first, with corruption firmly in second place,” Krugman remarked.
Despite the Democratic gains in Congress, Donald Trump remains president for another two years. In the 2024 election, Trump won by a slim margin of about 1.5 percentage points in the popular vote. Krugman highlighted that Trump “still wields immense power” and is seeking nearly half a trillion dollars for defense spending. Meanwhile, the US faces a budget deficit close to 6% of GDP and a national debt around 100% of GDP.
Democrats’ Congressional Authority and Limitations
With control over congressional committees, Democrats gain the ability to initiate investigations, issue subpoenas, and hold witnesses accountable. However, they lack the votes to override a presidential veto, though they might compel Trump to veto certain widely supported bills. Krugman noted, “The main shift is in who leads investigations—Democrats now chair the committees.”
Major policy initiatives such as Obamacare 2.0, Medicare for All, and a national wealth tax on billionaires are unlikely to pass in the next two years. Krugman also voiced concerns about corruption, emphasizing that “much of the institutional damage stems from eroding public trust.” He pointed out that gerrymandering has favored Republicans, skewing electoral fairness.
Approximately 25-30% of voters express support for authoritarianism and dissatisfaction with democracy. “The internal threat posed by authoritarian tendencies remains very real,” Krugman stressed. He further described the Republican Party as increasingly complacent and disconnected from the broader electorate.
Oligarchs played a decisive role in Trump's 2024 victory by financially backing at least one or two Senate candidates. In the 2026 midterms, Republicans spent around $160 million on advertisements targeting transgender issues.
Krugman reflected that “America has weakened considerably over the past three years,” affecting confidence in the military, diplomacy, and scientific institutions. The discussion also touched on the potential use of tactical nuclear weapons against Iran. “Trump’s withdrawal from international agreements has undermined scientific research, diplomacy, and military relations over recent years,” Krugman concluded.
Overall, the 2026 midterm election results present both opportunities and challenges for the US political system and its institutions.
The Democrats’ midterm success signals a shifting political landscape, notably with increased support among Latino and Black voters. These results highlight growing voter concerns about corruption and economic stability, issues likely to shape future electoral contests. At the same time, with Trump maintaining the presidency, his continued influence complicates efforts by Democrats to advance their policy agenda, fueling tension within Congress.
As the political landscape shifts following the midterms, it's essential to understand the reasons behind the Republican setbacks. Many party members are pointing fingers at Trump's influence as a significant factor in their defeat. For a deeper analysis of how these dynamics played out and their potential impact on future elections, read more about the Republicans' blame game regarding Trump's role.