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Both chambers of America’s Congress may flip in November

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AMERICANS WILL elect 471 federal officials in November: 435 members of the House of Representatives, 34 senators, a vice-president and a president. These contests are overshadowed by the impending rematch between President Joe Biden and Donald Trump, his predecessor, which will be pitched as a struggle between democracy and autocracy (and amplified by a projected $3bn in campaign spending). Seven months of this promises to be wearing.

Cast your eye down the ballot, however, and something exotic is in the offing. At the moment, Washington is divided by the thinnest of margins. Democrats control the Senate by just two seats out of 100. Republicans control the House of Representatives by five out of 435 (a margin that will shrink to four once Mike Gallagher of Wisconsin retires next month).

After the election, control of both chambers could flip. In the Senate, the seats contested this year are in extremely favourable states for Republicans. In the House, by contrast, Democrats campaigning against the chaos of Republican leadership may wrest back control. A double flip would be quite a feat of political gymnastics: it has never happened before.

Senate terms last six years, and only one-third are contested every two years. The mix this year is unkind to Democrats. Joe Manchin, the West Virginia senator who managed to remain the Democratic representative of his Trump-loving state, is retiring. His seat will almost certainly be filled by a Republican, leaving the starting-point for the race at, in essence, 50-50.

Of the seven competitive Senate races this cycle, all are now held by Democrats. Five are in presidential battleground states (Arizona, Michigan, Nevada, Pennsylvania and Wisconsin). They are winnable by Democrats, but none comfortably (see chart). In Montana and Ohio Mr Biden is likely to lose, but the incumbent Democratic senators, Jon Tester and Sherrod Brown, must prevail if the party is to retain control of the chamber. They are the last remaining Democrats holding statewide office in their respective states. Adding to the Democrats’ headaches, Larry Hogan, a popular Republican ex-governor of ordinarily deep-Democratic Maryland, plans to run for its Senate seat.

Chart: The Economist

Republican incumbents, meanwhile, look comfortable. The two that Democrats have the slightest chance of upsetting are Ted Cruz of Texas and Rick Scott of Florida—neither of whom represents states that Mr Biden will be seriously contesting. Overall, then, the maths look troubling for Democrats. They will need to play perfect defence to get to a 50-50 Senate (and hope that Kamala Harris remains vice-president to break ties in their favour).

True, the Democrats managed this feat in the midterms of 2022 (actually gaining one seat, in Pennsylvania). They expect to retain their fundraising advantages. And the candidate-quality issues that hurt Republicans in previous elections may recur. In Arizona, for example, Kari Lake, an election-denying demagogue who in 2022 lost her bid for governor against a weak Democratic challenger, will probably be the party’s Senate candidate. In Pennsylvania Dave McCormick, the presumptive Republican nominee who lost an expensive Senate primary in 2022 to a celebrity doctor, Mehmet Oz, is dogged by allegations of carpet-bagging over his private-jet travel to his mansion in Connecticut.

The House elections are not so tilted against the Republicans as the Senate elections are against the Democrats. But Democrats have a more credible case for taking the chamber than the Republicans do for keeping it, for a number of reasons.

First, Republican stewardship of the House has been chaotic, even by the low standards of Congress. Last year, for the first time in American history, Republican hardliners deposed their speaker. Last week one of their ranks, Marjorie Taylor Greene, introduced a motion to depose the current speaker. More ordinary forces also militate against Republicans. Democrats are expected to outspend them. And there are over a dozen Republicans in districts that voted for Mr Biden; there are only five Democrats in Trump-friendly districts.

Chart: The Economist

The possible flip-flopping of the chambers may seem odd when American politics are so nationalised and polarised. Split-ticket voting—in which people vote for presidential candidates of one party and congressional candidates of another—has gone from common to exceptional. In roughly one-third of the Senate races held in the presidential-election years of 1992, 1996 and 2000, voters opted for a presidential candidate of one party and a senator of the other. In 2016 there were no such cases. And in the 33 elections held in 2020 the sole exception was in Maine.

Split congressional districts have also declined precipitously. Before 2000 well over 100 districts typically had representatives belonging to a different party from the voters’ presidential preference. By 2020 this had declined to a record low of 16.

But as American politics have calcified into two mutually loathing teams of nearly equal size, legislative majorities that were once enduring have become narrow and unstable. Between 1932 and 1994, Democrats controlled the House for all but four years. Since then the chamber has flipped party control five times. Minor fluctuations—small shifts in turnout, the entry of a third-party candidate—can be decisive.

A double flip would matter for more than just novelty. Republican control of the Senate would mean that Mr Trump, if he regains the White House, would have a far easier time confirming his most outlandish potential nominees. Mr Biden, if re-elected, could find that his nominees to fill judicial vacancies were refused.

Republican senators are, for the moment, more internationalist than their House colleagues, so aid for Ukraine could pass through a differently divided government. But on the whole, divided government tends to be inimical to serious legislating—as experienced in the tug-of-war between President Barack Obama and the Republican-controlled Senate after 2015.

The competition for Capitol Hill has not yet attracted a great deal of public interest. Perhaps it should. For all the attention that Americans pay to the question of their next president, they devote surprisingly little to whether or not he will be able to do much from his perch.

Economics

A protest against America’s TikTok ban is mired in contradiction

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AS A SHUTDOWN looms, TikTok in America has the air of the last day of school. The Brits are saying goodbye to the Americans. Australians are waiting in the wings to replace banished American influencers. And American users are bidding farewell to their fictional Chinese spies—a joke referencing the American government’s accusation that China is using the app (which is owned by ByteDance, a Chinese tech giant) to surveil American citizens.

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Economics

Home insurance costs soar as climate events surge, Treasury Dept. says

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Firefighters battle flames during the Eaton Fire in Pasadena, California, U.S., Jan. 7, 2025.

Mario Anzuoni | Reuters

Climate-related natural disasters are driving up insurance costs for homeowners in the most-affected regions, according to a Treasury Department report released Thursday.

In a voluminous study covering 2018-22 and including some data beyond that, the department found that there were 84 disasters costing $1 billion or more, excluding floods, and that they caused a combined $609 billion in damages. Floods are not covered under homeowner policies.

During the period, costs for policies across all categories rose 8.7% faster than the rate of inflation. However, the burden went largely to those living in areas most hit by climate-related events.

For consumers living in the 20% of zip codes with the highest expected annual losses, premiums averaged $2,321, or 82% more than those living in the 20% of lowest-risk zip codes.

“Homeowners insurance is becoming more costly and less accessible for consumers as the costs of climate-related events pose growing challenges to both homeowners and insurers alike,” said Nellie Liang, undersecretary of the Treasury for domestic finance.

The report comes as rescue workers continue to battle raging wildfires in the Los Angeles area. At least 25 people have been killed and 180,000 homeowners have been displaced.

Treasury Secretary Janet Yellen said the costs from the fires are still unknown, but noted that the report reflected an ongoing serious problem. During the period studied, there was nearly double the annual total of disasters declared for climate-related events as in the period of 1960-2010 combined.

“Moreover, this [wildfire disaster] does not stand alone as evidence of this impact, with other climate-related events leading to challenges for Americans in finding affordable insurance coverage – from severe storms in the Great Plans to hurricanes in the Southeast,” Yellen said in a statement. “This report identifies alarming trends of rising costs of insurance, all of which threaten the long-term prosperity of American families.”

Both homeowners and insurers in the most-affected areas were paying in other ways as well.

Nonrenewal rates in the highest-risk areas were about 80% higher than those in less-risky areas, while insurers paid average claims of $24,000 in higher-risk areas compared to $19,000 in lowest-risk regions.

In the Southeast, which includes states such as Florida and Louisiana that frequently are slammed by hurricanes, the claim frequency was 20% higher than the national average.

In the Southwest, which includes California, wildfires tore through 3.3 million acres during the time period, with five events causing more than $100 million in damages. The average loss claim was nearly $27,000, or nearly 50% higher than the national average. Nonrenewal rates for insurance were 23.5% higher than the national average.

The Treasury Department released its findings with just three days left in the current administration. Treasury officials said they hope the administration under President-elect Donald Trump uses the report as a springboard for action.

“We certainly are hopeful that our successors stay focused on this issue and continue to produce important research on this issue and think about important and creative ways to address it,” an official said.

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Economics

How bad will the smoke be for Angelenos’ health?

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Where there is fire, there is smoke. For the people of Los Angeles, this will add to the misery. Some are already suffering from burning throats and irritated eyes. Many miles from the wildfires, people are wearing masks; shops are running out. The fires may also cause long-term problems.

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