Ailing economy may cost Republicans big

WASHINGTON (Reuters) - Fear and anger about the economy may cost the Republicans big-time in next month's election -- and give Democrats a 60-seat majority in the 100-member Senate for the first time 30 years.

With their polls rising, Democrats have a plausible shot at gaining nine seats to hit 60, which could provide the votes needed to clear Republican procedural hurdles and move quickly to keep campaign promises.

"Imagine what we can accomplish with a filibuster-proof Senate majority," Democratic presidential nominee Barack Obama, who polls show is leading Republican rival John McCain, wrote in a fund-raising appeal last week.

Despite their collective clout, Obama and a Democratic Senate "super majority" still would likely be hobbled by a record federal deficit. And Democratic senators could seek to seize the initiative with some of their own proposals rather than stick to the Obama game plan.

"Each senator thinks he or she is the equal of the president," said Stephen Hess, a congressional scholar at the Brookings Institution. "Every president would love to have 60 votes in the Senate but they'll still have to work for everything they get."

Nevertheless, a 60-seat majority in the 100-seat Senate would mean the Democrats would not have to cut deals with Republicans to move legislation, including promised measures to roll back tax cuts for the rich, increase regulation of the financial markets and stimulate the economy.

On the other side of the U.S. Capitol, Democrats, who control the House of Representatives 235-199, are expected to gain as many as two dozen seats in the November 4 election, up to twice as many as anticipated just a few weeks ago.

"Things have gone from bad to worse for Republicans," said Nathan Gonzales of the nonpartisan Rothenberg Political Report, which tracks congressional elections.

"Fairly or unfairly, they (Republicans) have taken most of the blame for the economic crisis and Democrats have leveraged this to their advantage," Gonzales said.

"They (Senate Democrats) are getting close" to obtaining 60 seats, said Jennifer Duffy of the nonpartisan Cook Political Report. "I wouldn't be surprised" if they do it.

IRAQ, BUSH ALSO WEIGH

Before the economy emerged as a top issue, Republicans had been hurt by the unpopularity of the Iraq war and Republican President George W. Bush, whose term ends in January.

When it comes to handling fiscal matters, polls show Americans prefer Democrats over Bush and his traditionally pro-business, anti-regulation fellow Republicans.

"This election is a referendum on economic change," said Sen. Charles Schumer of New York, head of the Senate Democratic campaign committee. "The wind is more at our back than ever."

The wind became a political storm last month when Congress passed a $700 billion rescue package to help Wall Street giants whose troubles are squeezing Main Street consumers and merchants as well as state and local governments.

A public backlash at what critics denounced as a "blank check for Wall Street" put a number of incumbents, primarily Republicans, in jeopardy.

Overall, 35 Senate seats are up for election, 23 now held by Republicans, the others by Democrats.

Eleven races involving Republican-held seats are seen as competitive. The contests include several in Republican-leaning states, such as North Carolina, Georgia, Mississippi and Kentucky, where Senate Republican leader Mitch McConnell is suddenly in a battle to win a fifth term.

Just one Democratic senator, Louisiana's Mary Landrieu, is considered in danger.

Sen. John Ensign of Nevada, chairman of the Senate Republican campaign committee, said he's bracing to lose a number of Senate seats and scrambling to prevent Democrats from getting a filibuster-proof majority.

"One of our missions is to explain to people how dangerous it would be if Democrats get 60," Ensign said, warning that a big Democratic victory would mean "an energy policy that will keep us dependent on foreign oil (and) a health care policy that has the bureaucracy in Washington, D.C., running our health care."

(Editing by Anthony Boadle)