The Economy and Presidential Elections

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Every time a presidential election rolls around it seems as if America wakes up from a deep sleep. For months we are engulfed in a never ending wave of political rhetoric. We hear about it on the radio, watch it on TV, we see it on the internet, billboards, and bumper stickers. Huge amounts of money are spent during the presidential campaign by both sides in hopes of gaining an advantage. Although the campaign can be exciting, it will usually not determine the winner. The outcome is determined more heavily by other factors, many of which are out of the candidates control. The campaign must be run in a context that is structured by these factors or it will be unsuccessful.(13) The campaign, though important, does not determine the outcome of a presidential election, results are determined by other fundamental factors such as the health of the economy, possible incumbency advantage, and party ID.
The Economy is one of the biggest fundamental factors that determines the outcome of any presidential election.(12) It’s also one of the factors the president doesn't have much control over. One way we determine how well a country's economy is doing is a measurement called Gross Domestic Product(GDP). GDP is basically the money our country makes from goods and services produced over a specific period of time. Research strongly suggests that there is a correlation between GDP increase and incumbent party success. It is very difficult to win a incumbent party in a growing economy. For example President Barack Obama during the 2008 presidential election. At this time our economy was in bad shape, Obama used this to his advantage and ended up winning the election. But on the flip side, with the economy improving at the rate of a snail since his inauguration, his path to victory was much more challenging in 2012.(13)
Figure 7.1 on page 177 of The Gamble is a compelling graph that does an excellent job in illustrating the economy’s capacity to influence presidential elections. The graph compares voting results of past elections with percent change in GDP. When the results are analyzed it is apparent that a strong connection exists between the incumbents share of the majority vote and economic growth. If the economy is growing the incumbent party will most likely be re-elected.(177) This brings us to another fundamental factor, incumbency advantage.
Throughout history, the possibility of incumbency has always weighed heavily on the outcome of a presidential election.

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