NEW YORK (TheStreet) -- Stocks of defense contractors Boeing(BA) - Get Report, Lockheed Martin(LMT) - Get Report, Raytheon(RTN) - Get Report, Northrop Grumman(NOC) - Get Report and General Dynamic(GD) - Get Report received a boost from the budget deal that Congress just passed. But Rep. Paul Ryan's (R-WI) stock has risen even more.
By crafting a two-year budget package with Sen. Patty Murray (D-WA), chairwoman of the Senate Budget Committee, Ryan, chairman of the Houst Budget Committee, has helped remove the issue that most harms the Republican Party: a government shutdown. It's much less likely now that the government will shut down overr budget matters, which should guarantee that the Affordable Care Act will remain the political focus in 2014, the year of midterm elections.
Thanks to ObamaCare, the government shutdown in October is all but forgotten. Democrats up for election in November 2014 need another government shutdown, courtesy of the Tea Party. But that is unlikely with the budget deal law for the next two years.
When the budget accord expires, the presidential election campaign for 2016 will be under way. Ryan, the vice presidential nomines in 2012, will be in a position of strength if the Republican Party does well in the midterm elections. Should the Republicans take back the Senate, the budget deal will receive a lot of credit. That will elevate Ryan's role as a leader of the party and a statesman in matters of national affairs, one who can reach across the aisle to work with the opposing party. Voters will like that in 2016.
Because of ObamaCare, the divisiveness in Washington will likely get worse. That will make the budget deal even more of an achievement for Ryan. It will appeal to voters looking for someone who can work with others in Congress to get things done.
Both the Senate and the House passed the Ryan-Murray budget accord with overwhelming support, a sign that the voters want to see bipartisan action on important matters. The Senate hadn't passed a budget since 2009, and now Ryan can take credit for moving a deal through Congress quickly, the most impressive accomplishment of any Republican member of Congress in recent times.
At the time of publication, the author had no position in any of the stocks mentioned.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Jonathan Yates is a financial writer who has had thousands of articles appear in periodicals and Web sites such as TheStreet, Newsweek, The Washington Post and many others. Much of his career was spent working on Capitol Hill for Members of Congress in both the House and Senate, on both committee and personal staff. He was also General Counsel for a publicly traded corporation. He has degrees from Harvard University, Georgetown University Law Center and The Johns Hopkins University.