In the end, the moderates probably will cut the budget surplus into three approximately equal slices--one intended for a modest tax cut, the second dedicated to small spending increases for prescription drugs and health care and the third to pay down the nation's debt. This isn't the result that Bush or Gore campaigned for, but it's a balance that most Americans will be content with.
Foreign policy will be guided by the same moderate coalition in Congress. This means that the U.S. will continue to use its military muscle with great reluctance but feel no qualms about using its economic muscle unilaterally when the nation's economic interests are at stake. The White House and Congress will continue to back free trade while imposing duties on specific imports that undercut the prices of domestic producers. The Treasury, carefully overseen by Congress, will continue to tell the International Monetary Fund what to do. There will be scant support for foreign aid or debt relief for poor nations.
Meanwhile, economic policy will shift entirely to the Federal Reserve Board. Years ago, the economy's speed was regulated by two levers--one fiscal, run largely by the White House, and the other monetary, run by the Federal Reserve. But fiscal policy all but vanished when the Clinton administration resolved to reduce the nation's deficit. The government that takes control next January won't even remember where the fiscal lever can be found. Thus will Alan Greenspan, the Fed's powerful chairman, be in complete charge of the nation's economy and, indirectly, of the global economy.
http://www.prospect.org/webfeatures/2000/11/reich-r-11-16.html