After months of sharp-elbowed politicking in an election campaign that saw upward of $6 billion spent, Americans woke up Nov. 7 having reaffirmed the political status quo: President Barack Obama was returned to the White House with the overwhelming support of the country’s youth and minority vote; the Republicans retained their majority in the House of Representatives; and the dysfunctional cohabitation of Washington’s centers of power promised tough times ahead as the “fiscal cliff” looms. Negotiations over a new budget remain deadlocked, raising the risk of the New Year triggering a series of tax hikes and spending cuts that could return the U.S. economy to recession. Buoyed by his renewed mandate, it remains to be seen how and whether Obama — a pragmatic, cautious leader — intends to both mollify his GOP adversaries and stick to his promise to allow the Bush-era tax cuts for the wealthiest Americans to expire. But House Republicans face a similar dilemma, fighting to keep those tax rates but avoid being blamed for a fiscal body blow.
U.S. News
Thanks for liking TIME’s Top 10 Everything of 2012 List. Like TIME on Facebook now for more breaking news and current events from around the globe.
1. President Obama Reelected to Fix a Struggling Economy
Full List
Top 10 Education Stories
- 10. Go, Fight, Win: Texas Cheerleaders and the B-I-B-L-E
- 9. The Rise of the Digital Textbook
- 8. Harvard’s Cheating Scandal
- 7. Shaming the For-Profit Colleges
- 6. Bypassing No Child Left Behind
- 5. The Ever-Worsening Student Loan Crisis
- 4. UVA President Ousted—Then Reinstated
- 3. Malala and the Fight for Girls’ Education Worldwide
- 2. Chicago Teachers Hit the Picket Lines
- 1. Planet of the MOOCs
Top 10 U.S. News Stories
- 10. The American Energy Boom
- 9. The Grim Toll of Military Suicides
- 8. Obama’s Gay Marriage Awakening
- 7. The Fall of Gen. David Petraeus
- 6. Amnesty for the Undocumented?
- 5. Mayhem at Aurora and Oak Creek
- 4. The Killing of Trayvon Martin
- 3. ‘Obamacare’ Upheld
- 2. Hurricane Sandy
- 1. President Obama Reelected to Fix a Struggling Economy