If you’re surprised by a Trump win, it suggests you have been living under a rock and in a bubble. The polls have been consistently close since Harris became the nominee—often within the margin of error, especially in the swing states. If this outcome surprised you, you need to read more sources of information and step outside whatever bubble you live in.
In the coming days, weeks, months, and even years, you’ll hear a variety of explanations for why Harris and the Democrats lost. But in my view, this election wasn’t decided in the final days of the campaign, when Harris became the nominee, or when Biden made his decision to run for reelection. The outcome was shaped by a few events, years ago: the massive stimulus packages passed by both the Trump and Biden administrations to combat the economic fallout of COVID-19; the war between Russia and Ukraine, which caused gas prices to surge almost overnight; the Federal Reserve’s delayed response to inflation; and the supply chain crises which together triggered the highest inflation in over 40 years. These factors, more than any political maneuvering or campaign messaging, decided the election. And some of our priors would have confirmed these results even before the election. In the past two years, we’ve seen a clear pattern emerge worldwide: politicians and political parties that held power during the COVID lockdowns and the inflation crisis have faced significant losses at the ballot box. This trend has been evident in many countries, and certainly going to happen to our neighbors in the north with Trudeau.
The American economy, by most measures, is performing well. Unemployment is very low, inflation is approaching our 2% target once again, the stock market is reaching all-time highs, nominal wage growth has exceeded inflation for over 18 months, and GDP growth has been robust. However, real wage growth has not outpaced inflation, leaving many people feeling the strain of rising prices. Additionally, with interest rates at a 20-year high, purchasing a home or a new car is out of the question for many folks. Ultimately, no economic indicator matters if people feel worse off and are facing increasing costs reflected in their bills or in the very least have the perception.
There were many comparisons between President Jimmy Carter and President Joe Biden early on in the election cycle, particularly regarding inflation and their significant unpopularity during their respective presidencies. However, these comparisons diminished once Biden stepped back and Vice President Kamala Harris took the spotlight. President Carter’s Administration was plagued by stagflation, and then Ronald Reagan had a landslide victory over Carter in the 1980 election, and then in 1984, Reagan defeated Carter’s Vice President Walter Mondale in an even greater landslide. This latter comparison seems particularly relevant; given that both were Vice Presidents during administrations that faced significant inflation, which American voters ultimately ended up punishing. These Historical trends suggest that voters tend to punish the incumbent party in such economic climates, an insight that should have been considered in the context of today’s election and inflation.
The 2024 election represents President Trump’s most decisive victory to date. It can be argued that the 2016 election results were somewhat of a fluke. Had Hillary Clinton run a more effective campaign—free from hubris and had a greater focus on the crucial Blue Wall states—the results might have been different. And most importantly, had there been no Comey’s letter in late October, my guess is that swung the entire election, allowing Clinton to become the 45th President.
This year, was not that, we witnessed significant demographic shifts, with Trump making notable improvements across all groups. Signs of Latino voters shifting towards the right had been emerging in the last few elections, and that shift became evident early on during election night as results from Florida and Texas came in. This election was a total repudiation of the Democratic party and allowed Trump to win the popular vote for the first time in two decades for a Republican president. Working-class voters are continuing to realign with Trump as they have done since 2016, especially even more as they feel the worst of inflation. Large Urban States like IL and NY had their best showing for GOP at the Presidential level in decades, more evidence that voters are very unhappy with the Democratic party and their governance.
Democrats fared quite well overall, particularly in down-ballot races. They were defending several Senate seats in Solid Republican and Swing states, including Arizona, Michigan, Montana, Nevada, Ohio, Pennsylvania, Wisconsin, and West Virginia. Democrats successfully won in Michigan, Nevada, and Wisconsin, and they are currently favored in Arizona, despite voters splitting their tickets and supporting Trump at the presidential level. Montana, Ohio, and West Virginia are very Republican states, so these results should not be surprising, even if Tester and Brown were serial overperformers throughout their career. The loss in the Pennsylvania Senate is the only truly devastating loss for Democrats. It appears that control of the House will likely remain with the GOP once all the votes are counted. Moderate House candidates outperformed Harris across the board, and many managed to hold onto seats that were considered vulnerable, while Trump performed strongly at the top of the ticket.
One of the reasons, it was close as it was because Trump remains largely unpopular even if people voted for him. I imagine if someone like Nikki Haley were on the ballot on Tuesday, it would have been a blood bath and Democrats would not have won all of these Senate seats. Are these realignments permanent or merely a reaction to current economic conditions? While the answer will remain unclear for some time, it is evident that demographics are not destiny, as some once believed in the Democratic Party.
