Democrats’ big blue wave will destroy the economy

President Trump is right that the U.S. economy is the envy of the world . What a shame that Americans just voted to destroy it.

That is not an exaggeration. Granting such a sweeping victory to the Democratic Party, now in thrall to progressives who want to hike taxes, abandon fossil fuels and shut down the rollout of artificial intelligence, will slow investment and neuter the industries powering U.S. economic growth.

Yes, voters are angry about the rising cost of living, blaming the war in Iran for higher oil prices. But restricting domestic oil and gas production, as Joe Biden did during his term and the environmental lobby is keen to do going forward, will not bring diesel prices down — just the opposite. The U.S. is the world’s largest oil producer ; limiting supplies in any global market inevitably drives prices up.

Similarly, banning the construction of data centers won’t make electricity cheaper; it will simply mean that fewer electricians and welders have work. The better answer lies in local regulations that protect residents from extra power and water costs resulting from data center operations.

There were some 45 ballot measures available to voters on Tuesday that restricted or regulated data centers; nearly all passed . Ohio, a major player in the space, led the country in seeking voter input. A local civics professor told Fortune that the response to the more than 100 referenda in the state should “signal to statehouses nationwide that ratepayer protections, transparency, and grid safeguards should dominate policy agendas.”

That would not satisfy U.S. Rep. Yassamin Ansari (D-Ariz.), who recently posted, “Top of the Democratic agenda on day 1 needs to be a pause on advanced AI development, regulation of this out of control industry, and a ban on artificial superintelligence.” No wonder tech stocks got hammered yesterday.

Throughout the 2026 campaign, Democratic candidates’ central promise was that they would deliver “affordability.” But the media — and voters — failed to demand specifics. Exactly how will they make life more affordable? There is no plan.

Democrats will not make anything cheaper, they will simply raise taxes and increase regulations. The costs of both will be passed on to consumers in the form of higher prices.

How do we know? Because that is what is already happening in Democrat-run cities and states, the most expensive places in the nation to live . Not only are these states prone to high taxes and regulatory gridlock, but they also host expanded and often unaffordable welfare programs meant to woo voters. There is no attention paid to increasing supply, which brings down prices — only to subsidizing higher demand.

Socialists want to go further than that traditional Democratic playbook, by inserting the government into private market activity. In New York City, for instance, Democrat Mayor Zohran Mamdani campaigned partly on a promise to lower food prices. He intends to build a handful of city-run grocery stores that will offer consumers discounted goods. Because the government is involved, the first store is estimated to cost $30 million — more than $3,000 per square foot and roughly four times the norm. The store is expected to run at a loss, forever.

There is nothing about this project that makes sense; it is a left-wing fantasy that will end in tears.

Democrats are offering up vague and unworkable promises, not real solutions. Roy Cooper (D), the new senator-elect from North Carolina, promises on his campaign website to “make stuff cost less.” James Talarico (D), elected to the Senate from Texas, wants to cap credit card rates , ignoring the long-failed history of price controls.

Some Democrats have vowed to eliminate tariffs. That is one step that could offer price relief, but it might also slow investment coming in from overseas. And Fed economists have determined that the impact will be slight.

Democrats seem eager, generally, to reshape the U.S. to resemble Europe, which cannot grow and offers its young people few opportunities. But the European Union has lost its mojo, more eager to divide the spoils of entrepreneurship and innovation than to encourage those hallmarks of American progress.

Government spending now accounts for nearly half of the EU economy , compared to about 35 percent in the U.S. Governments there have adopted “socialist-light” policies that guarantee slower productivity growth and a creep toward the gray twilight of mediocrity.

European countries have expanded their welfare states at the expense of their industries and their national defense, all but inviting Russia to invade Ukraine and threaten its NATO members. The proud automobile companies of Germany are in disarray, swamped by cheap imports from China and unable to compete because of onerous labor laws and outrageously high energy costs delivered by the green lobby.

Meanwhile, France has been beset by rioters supposedly wanting more money for education but really seeking even more cradle-to-grave handouts from a government that is now broke and can no longer bend to the people’s demands.

Most of the developed world is in trouble, but the U.S. has grown stronger and richer, thanks to the wealth created by the innovator class. Real disposable incomes have risen with Trump in the White House, with higher earnings, government handouts and lower taxes more than offsetting inflation. Employment is strong, manufacturing is expanding and productivity is soaring.

Let us hope overexcited Democrats do not destroy what is working. After all, the quickest way to lower prices is to bring on a recession. Surely that cannot be their elusive plan?

Liz Peek is a former partner of major bracket Wall Street firm Wertheim and Company.