Economics

Can you build an American voter?

Published

10 months ago

April 7, 2024

The race between Joe Biden and Donald Trump is very close. Over the first three months of 2024 the candidates were never more than three points apart in our average of national polls, with Mr Trump narrowly ahead for most of that time. That is new for Mr Trump: in his two previous presidential campaigns he never led a general-election polling average for a single day. More worrying still for Mr Biden, Mr Trump is ahead in several of the swing states that he lost in 2020. The outcome in half a dozen states— Arizona, Georgia, Michigan, Nevada, Pennsylvania and Wisconsin—is likely to prove decisive. A small but critical slice of voters who plumped for Mr Biden back then are now telling pollsters that they plan to defect. Who are they?

To find out, we built a statistical model to assess how a hypothetical voter might cast a ballot, based on their demographic traits. Our data come from YouGov, an online pollster, which every week surveys over a thousand people about their demographic profile, voting history and voting intentions. We combined all its survey results since January 2023 to get a detailed portrait of Americans’ voting preferences. Use the drop-down menus below to plug in any combination of attributes—age, sex, religion and more—to construct a hypothetical American and see our estimate of their vote. Or press shuffle to see a voter at random. Our model will continuously update to incorporate each week’s YouGov survey.

The voters propelling Mr Trump’s polling renaissance might come as a surprise. While white voters’ preferences have changed little since 2020, racial minorities—historically the bedrock of Democratic support—have lurched away from Mr Biden. Mr Trump has also sharply cut into his successor’s advantage among young voters, another core Democratic group. Mr Biden will hope these once-loyal Democrats return to the fold once the campaign heats up.

Latina women aged 25-34

Shifted towards Trump

Black people aged 35-54

Became less committed to Biden

Atheists

Remained loyal to Biden

White evangelicals

Remained loyal to Trump

Race is often cited as the central cleavage in American politics, yet the single most powerful predictor of voting intention is religion. A model that knows nothing save for respondents’ religious affiliations can correctly identify their preferred candidate 62% of the time, compared with 59% for race. Of Mormons and evangelical voters, 73% say they support Mr Trump. This compares with just 13% of avowed atheists.

Rather than the sharp realignment that took place in 2016 and 2020, when Mr Trump attracted working-class white voters while shedding college-educated ones, the voters swinging in either direction this year are more alike: they tend to be young; black or Hispanic; and live in cities. This suggests they have looser party alliances and pay less attention to politics.

So both sides will think they can win as the election approaches. And you can use this tool to explore the type of voter—a 40-year-old high-school-educated black man from rural Georgia, say—who might just swing it.■

Stay up to date on American politics with our new daily update, The US in brief. And explore how British voters may vote in the next election with our UK election trackers.

Methodology

Our model is based on survey data provided by YouGov, which obtains responses from a nationally representative sample of approximately 1,500 Americans each week. We gathered all results since the start of 2023, amounting to nearly 100,000 individual responses. We have removed people who did not say they planned to vote for either Joe Biden or Donald Trump in this year’s presidential election.

To estimate voting intentions based on demographic profiles, we fit a logistic regression model using the LASSO method, a statistical technique that eliminates or reduces the impact of certain variables in order to maximise accuracy on unseen data. Our model accounts not just for the eight demographic features detailed above in isolation, but also for how they interact with each other. For example, switching the listed age group from 75+ to 18-24 sharply increases the chances that a white voter will support Mr Biden, but actually reduces this probability for a black voter. Our model also incorporates the national poll average for the two leading candidates in each week. As a result, if one of them gains or loses ground in the polls overall, the model will automatically shift vote-intention probabilities for each demographic profile in the same direction. We update the model every week to account for additional survey data and new national polling averages.

Sources: YouGov; The Economist

Accounting

Business Transaction Recording For Financial Success

Published

3 hours ago

January 18, 2025

Business Finance News

Business Transaction Recording For Financial Success

In the world of financial management, accurate transaction recording is much more than a routine task—it is the foundation of fiscal integrity, operational transparency, and informed decision-making. By maintaining meticulous records, businesses ensure their financial ecosystem remains robust and reliable. This article explores the essential practices for precise transaction recording and its critical role in driving business success.

The Importance of Detailed Transaction Recording
At the heart of accurate financial management is detailed transaction recording. Each transaction must include not only the monetary amount but also its nature, the parties involved, and the exact date and time. This level of detail creates a comprehensive audit trail that supports financial analysis, regulatory compliance, and future decision-making. Proper documentation also ensures that stakeholders have a clear and trustworthy view of an organization’s financial health.

Establishing a Robust Chart of Accounts
A well-organized chart of accounts is fundamental to accurate transaction recording. This structured framework categorizes financial activities into meaningful groups, enabling businesses to track income, expenses, assets, and liabilities consistently. Regularly reviewing and updating the chart of accounts ensures it stays relevant as the business evolves, allowing for meaningful comparisons and trend analysis over time.

Leveraging Modern Accounting Software
Advanced accounting software has revolutionized how businesses handle transaction recording. These tools automate repetitive tasks like data entry, synchronize transactions in real-time with bank feeds, and perform validation checks to minimize errors. Features such as cloud integration and customizable reports make these platforms invaluable for maintaining accurate, accessible, and up-to-date financial records.

The Power of Double-Entry Bookkeeping
Double-entry bookkeeping remains a cornerstone of precise transaction management. By ensuring every transaction affects at least two accounts, this system inherently checks for errors and maintains balance within the financial records. For example, recording both a debit and a credit ensures that discrepancies are caught early, providing a reliable framework for accurate reporting.

The Role of Timely Documentation
Prompt transaction recording is another critical factor in financial accuracy. Delays in documentation can lead to missing or incorrect entries, which may skew financial reports and complicate decision-making. A culture that prioritizes timely and accurate record-keeping ensures that a company always has real-time insights into its financial position, helping it adapt to changing conditions quickly.

Regular Reconciliation for Financial Integrity
Periodic reconciliations act as a vital checkpoint in transaction recording. Whether conducted daily, weekly, or monthly, these reviews compare recorded transactions with external records, such as bank statements, to identify discrepancies. Early detection of errors ensures that records remain accurate and that the company’s financial statements are trustworthy.

Conclusion
Mastering the art of accurate transaction recording is far more than a compliance requirement—it is a strategic necessity. By implementing detailed recording practices, leveraging advanced technology, and adhering to time-tested principles like double-entry bookkeeping, businesses can ensure financial transparency and operational efficiency. For finance professionals and business leaders, precise transaction recording is the bedrock of informed decision-making, stakeholder confidence, and long-term success.

With these strategies, businesses can build a reliable financial foundation that supports growth, resilience, and the ability to navigate an ever-changing economic landscape.

Economics

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

Published

9 hours ago

January 17, 2025

Business Finance News

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.

Economics

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

Published

1 day ago

January 16, 2025

Business Finance News

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.