The election is over and consistent with most of the pre-election polling data, Republicans have taken the House and the Democrats have retained the Senate. Now we must focus on what this means for the country going forward.

1. The economy will quickly rebound and unemployment will decrease significantly.

President Obama will claim the effects of his policies are finally being seen. However, the real driver of new economic growth will be something business has not seen in the past two years-policy stability. With a Democrat-controlled House, Senate, and White House passing unprecedented anti-business legislation over the past two years and threatening even more anti-business legislation, there was no certainty. When policy is in such a state of flux, businesses cannot plan for the future. When businesses cannot plan for the future, they does not invest in growth. Rather, businesses cut costs and hold their hat over their head waiting for some certainty to base expansion plans around. Because the House will be controlled by Republicans, minimal, if any legislation will be passed, agreed upon by the Senate, and signed into law by the President. Businesses knowing nothing material will change, will have certainty to plan around and will begin to invest and grow again.

2. By March, President Obama will stop blaming George W. Bush for everything that goes wrong.

The Republican victory in the House is probably the best thing that could happen for President Obama’s 2012 reelection bid because he now has a new scapegoat. By March, everything that goes wrong will be due to the “gridlock” in Congress because those evil Republicans just won’t compromise with the President (read: do what he wants). When President Obama does run for reelection, he will tell us that he wasn’t able to complete all the “change” he was “sent to do” because of the Republican-controlled House. This will also lead to Democrats closing the gap in the House in 2012, but not re-taking control.

3. The official Presidential derby begins.

The line to oppose President Obama will be long and diverse. Many, such as Mitt Romney, Sarah Palin, and Tim Pawlenty have already been campaigning indirectly. Look for the dominoes to start to fall once one of the high-profile candidates makes their official declaration that they are indeed running.

4. The Tea Party changes or ceases to exist

I’m not exactly sure how the Tea Party will change, but it is unsustainable in its current state as it is a loose, unconnected coalition. The Tea Party candidates that won all were part of the Republican Party. One of two scenarios are likely. One that the Tea Party becomes a vocal piece of the Republican Party, pushing it to be more fiscally conservative, but its voice is somewhat swallowed by the Republican monster. Or, the Tea Party becomes considered some type of “fringe” group, constantly complaining that whatever change made is not enough, leading to its eventual demise. Either way, it remains to be seen what the impact of the Tea Party will be in 2012, as the inevitable changes occur and the economy improves which will significantly reduce voter frustration.

5. The Republicans have reached a fork in the road

Will the Republicans consistently “compromise” with the President or stand on the small government principles that many of them ran on? Or will the Republicans go back to being the same old Republicans they have been over the past 20 years, doing whatever seems best at the moment rather than standing for something. I am curious to see what they really are, especially people like John McCain claiming once again to have “heard” America.