Connect with us

Economics

Why America’s political parties are so bad at winning elections

Published

on

Listen to this story.
Enjoy more audio and podcasts on iOS or Android.

Your browser does not support the <audio> element.

Every four years the American presidential primaries roll around to remind Americans how weak, clumsy and negative their major political parties have become. The news media’s red-and-blue maps, the repetitive partisan standoffs in Congress and the drama created by the polarisation of the parties create the impression that they hold tremendous sway, that Americans are devoted to either the Democrats or Republicans and obsessed with their prospects. The reality is more muddled and dispiriting.

The largest, and growing, share of Americans choose not to identify with either party. According to a Gallup poll released this month, 43% call themselves independent, tying a record set in 2014. In Gallup’s poll, the proportion of eligible voters identifying as Democrat has fallen to a record low, 27%, the same percentage that call themselves Republican. Another Gallup poll, also this month, found that only 28% of adults, also a new low, were satisfied with “the way democracy is working in this country”.

Yet the parties are not reacting by making themselves more appealing. Something is interfering with the signals the electorate sends to the organisations that supply candidates and ideas, never more so than this cycle, when most Americans have consistently turned their noses up at the products most likely to be on offer, President Joe Biden and former President Donald Trump.

“The first party to retire its 80-year-old candidate is going to be the party that wins this election,” declared Nikki Haley, a former governor of South Carolina, as she conceded the New Hampshire primary to Mr Trump on January 23rd. She may be right in theory. But she is wrong in practice that there is some coherent entity called a “party” capable of such a rational calculation. As Mr Trump demonstrated in 2016, and Barack Obama did before him, political parties do not plot or strategise anymore to anoint a candidate, at least not with much effect; they have instead become vehicles idling by the curbs of American life until the primaries approach, waiting for successful candidates to commandeer them.

For most of American history, party leaders picked presidential nominees. That system collapsed after the fractious Democratic convention of 1968, in which party elders ignored the candidate of the anti-Vietnam-war left and instead bestowed the nomination on Vice-President Hubert Humphrey, who had not competed in a single primary. Reformers successfully argued that nominating delegates should be picked by voters in primaries instead, and Republicans eventually followed the Democrats’ lead. This approach opened up the system to candidates, such as Jimmy Carter in 1976 and Ronald Reagan in 1980, who might never have been chosen in a smoke-filled room.

But in taking power from the party establishment, reformers unintentionally handed it to activists, who tend to be more extreme than other partisans, let alone the rest of the country. This is particularly true of the Republican Party. Now, relatively small numbers of impassioned voters can end up choosing nominees.

After Mr Trump won 51% of the vote in the Iowa caucuses this month, he was credited in the news media with a “landslide” win and a “blowout victory”. But it was a frigid night, and fewer than one in six registered Republicans turned out. They were probably among the most motivated of voters, quite unlike most Americans. Mr Trump won about 56,000 of these Republicans, or about 7% of the potential pool of 752,000 Iowa Republicans.

In New Hampshire on January 23rd Mr Trump won most Republicans who turned out, while Ms Haley won most “undeclared”, or independent voters who did so. Political analysts rightly saw this as a weakness of Ms Haley, because in many states independent voters cannot cast ballots in partisan primaries. And it might seem reasonable that the Republicans would want to nominate whoever wins the most Republicans. The flaw in this approach is that, definitionally, that candidate has demonstrated only that they can win if the electorate is Republican. A party capable of organising itself to win a general election with a big majority would place more value on reaching beyond the base.

A party’s nominee may not win the majority even of its primary voters, let alone of its eligible primary voters. The primaries tend to exaggerate the popularity of the eventual nominee because many states award all their delegates to the winner, rather than dividing them proportionately among the candidates. In 2016 Mr Trump won fewer than 45% of primary voters in all—that is, he won the Trumpy minority of the activist minority that turned out.

This is a fragile basis on which to stake a claim to nationwide electability. Nominees overcome that handicap by relying on what political scientists call “negative partisanship”. Though the plurality of Americans call themselves independent, they tend to lean to one party or another. Encouraging these voters, as well as less politically active party members, to see the opposing party as demonic is a reliable means of getting them to vote your way.

Third parties are hard

All this helps explain the longing of certain idealists and opportunists for a third party. That yen is particularly sharp in this cycle. History suggests it could be fulfilled quite suddenly, says Bernard Tamas, a political scientist at Valdosta State University and the author of “The Demise and Rebirth of American Third Parties”. “It’s often at times like this when the two major parties are polarised, because it opens a door for a third party to attack,” he says. “You don’t know if it’s going to happen until it happens.”

But the group No Labels, which is considering a third-party bid, appears to be off to a poor start. Successful third parties have tended to run candidates not just for president but down the ballot, too, and to have specific, galvanising issues. Had Donald Trump been capable of organising such an effort, he might have been a powerful third-party candidate. But why bother, when an existing party was just sitting there waiting to be commandeered? 

Read more from Lexington, our columnist on American politics:
It’s not the Trump Party quite yet (Jan 18th)
Ron DeSantis has some lessons for America’s politicians (Jan 11th)
How to win the culture war (Jan 4th)

Stay on top of American politics with Checks and Balance, our weekly subscriber-only newsletter examining the state of American democracy, and read other articles about the elections of 2024.

Economics

Americans are getting flashbacks to 2008 as tariffs stoke recession fears

Published

on

Homemade barbecue pork chops. Katy Perry performs onstage during the Katy Perry The Lifetimes Tour 2025. A woman checks her receipt while exiting a store.

iStock| Theo Wargo | Hispanolistic | Getty Images

A few weeks ago, as Kiki Rough felt increasingly concerned about the state of the economy, she began thinking about previous periods of financial hardship.

Rough thought about the skills she learned about making groceries stretch during the tough times that accompanied past economic downturns. Facing similar feelings of uncertainty about the country’s financial future, she began making video guides to recipes from cookbooks published during previous recessions, depressions and wartimes.

The 28-year-old told followers that she is not a professional chef, but instead earned her stripes by learning to cook while on food stamps. From Rough’s yellow-and-black kitchen in the Chicago suburbs, she teaches viewers how to make cheap meals and at-home replacements for items like breakfast strudel or donuts. She often reminds people to replace ingredients with alternatives they already have in the pantry.

“I keep seeing this joke over and over in the comments: The old poors teaching the new poors,” Rough told CNBC. “We just need to share knowledge right now because everyone is scared, and learning is going to give people the security to navigate these situations.”

The self-employed consultant’s videos quickly found an audience on TikTok and Instagram. Between both platforms, she’s gained 350,000 followers and garnered about 21 million views on videos over the last month, by her count.

President Donald Trump’s announcement of broad and steep tariffs earlier in April has ratcheted up fears of the U.S. economy tipping into a recession in recent weeks. As Americans like Rough grow increasingly worried about the road ahead, they are harking back to the tips and tricks they employed to scrape by during dark financial chapters like the global financial crisis that exploded in 2008.

Google is predicting a spike in search volumes this month for terms related to the recession that came to define the late 2000s. Searches for the “Global Financial Crisis” are expected to hit levels not seen since 2010, while inquiries for the “Great Recession” are slated to be at their highest rate since the onset of the Covid pandemic.

Porkchops, house parties and jungle juice

On TikTok, a gaggle of Millennials and Gen Xers has stepped into the roles of older siblings, offering flashbacks and advice to younger people on how to pinch pennies. Some Gen Zers have put out calls to elders for insights on what a recession may feel like at this stage of life, having been too young to feel the full effects of the financial crisis.

“This is, potentially, at least on a large scale, the first time that millennials have been able to be the ‘experts’ on something,” said Scott Sills, a 33-year-old marketer in Louisiana. “We’re the experts on getting the rug pulled out from under us.”

Those doling out the advice are taking a trip down memory lane the to tail-end of the aughts. Cheap getaways to Florida were the norm instead of lush trips abroad. They had folders for receipts in case big-ticket purchases went on sale later. Business casual outfits were commonplace at social events because they couldn’t afford multiple styles of clothing.

Porkchops were a staple dinner given their relative affordability, leading one creator to declare that they “taste like” the Great Recession. They drank “jungle juice” at house parties, a concoction of various cheap liquors and mixers, instead of cocktails at bars.

“There’s things that I didn’t realize were ‘recession indicators’ the first time around that I thought were just the trends,” said M.A. Lakewood, a writer and professional fundraiser in upstate New York. “Now, you can see it coming from 10 miles away.”

 Customers shop for produce at an H-E-B grocery store on Feb. 12, 2025 in Austin, Texas.

Brandon Bell | Getty Images

To be sure, some of the discourse has centered around how inflationary pressures have made a handful of these hacks defunct. Some content creators pointed out that the federal minimum wage has sat at $7.25 per hour since 2009 despite the cost of living skyrocketing.

Kimberly Casamento recently began a TikTok series walking viewers through recipes from a cookbook that was focused on affordable meals published in 2009. The New Jersey-based digital media manager said she’s found costs for what were then considered low-budget meals ballooning between about 100% and 150%. In addition to sharing the price changes, the 33-year-old gives viewers some tips on how to keep costs down.

“Every aspect of life is so expensive that it’s hard for anybody to survive,” Casamento said. “If you can cut the cost of your meal by $5, then that’s a win.”

‘A very human thing’

This type of communal knowledge-sharing is common during times of economic belt tightening, according to Megan Way, an associate professor at Babson College who studies family and intergenerational economics. While conversations about how to slash costs or to make meals stretch typically took place among neighbors in the late 2000s, Way said it makes sense that they would now play out in the digital square with the rise of social media.

“It’s a very human thing to reach out to others when things are feeling uncertain and try to gain on their experience,” Way said. “It can really make a difference for feeling like you’re moving forward a little prepared. One of the worst things for an economy is absolute fear.”

Read more CNBC analysis on culture and the economy

Way said that Americans are quick to look back to the Great Recession for a guide because that downturn was so shocking and widely felt. However, she said there’s key differences between that economic situation and what the U.S. is facing today, such as the absence of bad debt that sparked the housing market’s crash.

Still, she said there’s broad uncertainty felt today on several fronts — be it tied to the economy, geopolitics or domestic policy priorities like slashing the federal workforce or limiting immigration. That can reignite the feeling of unpredictability about what the future will bring that was paramount during the Great Recession, Way said.

In 2025, it’s clear that economic confidence among the average American is rapidly souring. The University of Michigan’s index of consumer sentiment recorded one of its worst readings in more than seven decades this month.

With that negative economic outlook comes rising stress. When Lukas Battle made a satirical TikTok about feeling like divorces were increasingly common around the time of the Great Recession, the 27-year-old’s comments were abuzz with people talking about their parents splitting recently. (Though divorce has been seen as a cultural hallmark of the financial crisis, data shows the rate actually declined during this period.)

“There’s a second round of divorces happening as we speak,” Battle said.

Cultural parallels

That’s one of several parallels social media users have drawn between the late aughts and today. When videos surfaced of a group dancing to Doechii’s hit song “Anxiety,” several commenters on X reported feeling déjà vu to when flashmob performances were common.

Disney‘s reboot of the animated show “Phineas and Ferb,” which originally premiered in the late 2000s, similarly put the era top of mind.

Lady Gaga performing at Coachella 2017

Getty Images | Christopher Polk

“Recession pop,” a phrase mainly referring to the subgenre of trendy music that dropped during the Global Financial Crisis, has caught a second wave over the past year as Americans contended with inflation and high interest rates.

Now, in 2025, as the chorus of voices projecting a recession ahead grows, pop music has some familiar sounds.

In 2008, artists such as Miley Cyrus, Lady Gaga and Katy Perry regularly appeared on the music charts. Both Cyrus and Gaga have released new songs this year. Perry kicked off a world tour this week.

“It’s almost a permission to feel good, whether that’s through song or something,” said Sills, the marketer in Louisiana. “It’s not necessarily ignoring the problems that are here, but just maybe finding some sort of joy or fun in the midst of all of it.”

Continue Reading

Economics

Checks and Balance newsletter: Predictions for the Democrats’ future

Published

on

Checks and Balance newsletter: Predictions for the Democrats’ future

Continue Reading

Economics

ECB members say inflation job nearly done but tariff risks loom

Published

on

Guests and attendeess mingle and walk through the atrium during the IMF/World Bank Group Spring Meetings at the IMF headquarters in Washington, DC, on April 24, 2025.

Jim Watson | Afp | Getty Images

After years dominated by the pandemic, supply chains, energy and inflation, there was a new topic topping the agenda at the World Bank and International Monetary Fund’s Spring Meetings this year: tariffs.

The IMF set the tone by kicking off the week with the release of its latest economic forecasts, which cut growth outlooks for the U.S., U.K. and many Asian countries. While economists, central bankers and politicians have been engaged in panels and behind-the-scenes talks, many are attempting to work out whether trade tensions between China and the U.S. are — or perhaps are not — cooling.

Policymakers from the European Central Bank that CNBC spoke to this week broadly stuck a dovish-leaning tone, indicating they saw interest rates continuing to fall and few upside risks to euro zone inflation. However, all stressed the current high levels of uncertainty, the need to keep monitoring data, and the high risks to the growth outlook — sentiments also echoed by Bank of England Governor Andrew Bailey in his interview with CNBC on Thursday.

These were some of the main messages from ECB members this week.

Christine Lagarde, European Central Bank president

On inflation and monetary policy:

“We’re heading towards our [inflation] target in the course of 2025, so that disinflationary process is so much on track that we are nearing completion. But we have the shocks, you know, and the shocks will be a dampen on GDP. It’s a negative shock to demand.”

“The net impact on inflation will depend on what countermeasures are eventually taken by Europe. Then we have to take into account the [German] fiscal push by the defense investments, by the infrastructure fund.”

“We have seen successive movements, you know, announcement [of U.S. tariffs], and then a pause, and then some exemptions. So we have to be very attentive… Either we cut, either we pause, but we will be data dependent to the extreme.”

Watch CNBC's full interview with ECB president Christine Lagarde

On market moves:

“When we had done our projections, we anticipated that… the dollar would appreciate, the euro would depreciate. It’s not what we saw. And there have been some counter-intuitive movements in various categories.”

“The German market has obviously been shocked in a positive way by the program soon to be put in place by the German government, with a commitment to defense, with a commitment to a big fund for infrastructure development.”

Klaas Knot, The Netherlands Bank president

On tariff uncertainty:

“If I look back over the last 14 years, in the initial days of the pandemic I think that was comparable uncertainty to what we have now.”

“In the short run, it’s crystal clear that the uncertainty that is created by the unpredictability of the tariff actions by the U.S. government works as a strong negative factor for growth. Basically, uncertainty is like a tax without revenue.”

On the inflation impact:

“In the short run, we will have lower growth. We will probably also have lower inflation. As we also see, the euro is appreciating as energy prices have also come down. So together with the sort of negative factor uncertainty in the short run, it’s crystal clear that it will accelerate the disinflation.”

It's 'crystal clear' that tariffs could hit growth in the short term, ECB's Knot says

“But in the medium term, the inflation outlook is not all that clear. I think there are still these negative factors. But in the medium term, you might get retaliation. You might get the disruption of global value chains, which might also be inflationary in other parts of the world than the U.S. only. And then, of course, we have the fiscal policy coming in in Europe. So this is actually a time in which you need projections.”

On a June rate cut and market pricing for two more ECB rate cuts in 2025:

“I’m fully open minded. I think it’s way too early to already take a position on June, whether it would be another cut. It will fully depend on these projections.”

“I would need to see a more structured analysis of the impact on the inflation profile ahead of us, and only then can I say whether the market is pricing fair or whether I don’t.”

Robert Holzmann, Austrian National Bank governor

On the need to wait for more data and news on tariffs:

“We have not seen this uncertainty now for years… unless the uncertainty subsides, by the right decisions, we will have to hold back a number of our decisions, and hence, we don’t know yet in what direction monetary policy should be best moved.”

“Before looking at data in detail, the question is, what kind of political decisions will be taken? Is it that we will have some tariff increases? Is it that we will have strong tariff increases? Is it that we will have retribution by high counter tariffs?”

We have not seen this much uncertainty for years, Austrian central bank governor says

On the ECB’s April rate cut:

“I think there’s a broad consensus [on rates]. But of course, at the margin, people differ.”

“My assessment is that at this time, it wasn’t clear yet to what extent [tariff] countermeasures were being taken. Because with countermeasures in Europe, prices may have increased. Without countermeasures, quite likely the price pressure is downward. And for the time being, we don’t know yet the direction.”

On the direction of interest rates:

“I think if the recent noises about an arrangement [on trade] were to be true, in this case, quite likely it is more towards the downside than the upside with regard to prices. But this can be changed with different decisions and the result of which, we may even imagine in [the] other direction. For the time being, no, it will be down.”

“There may be further cuts this year, but the number is still outstanding.”

Mārtiņš Kazāks, Bank of Latvia governor

On opportunity from tariffs:

“With all this uncertainty and vulnerability, this is also the time of opportunities for Europe.”

“It’s a time for Europe to grasp all the aspects of being an economic superpower and becoming a really fully-fledged political and geopolitical superpower, and this requires doing all the decisions that in the past, were not carried out fully.”

“This requires political will, political guts to make those decisions, and to strengthen the European economy and assert its place in a global world.”

Global vulnerability an opportunity for Europe, says ECB's Kazāks

On market reaction to tariffs:

“So far it seems to be relatively orderly … but if one looks at the spillovers to Europe, the financial markets are working more or less fine, we haven’t seen spreads exploding or anything like that.”

“But in terms, however, of the macro scenarios, this uncertainty is extremely elevated in the sense that, given the possible outcomes, the multiple scenarios and their probabilities are very similar with the baseline [tariff] scenario.”

Continue Reading

Trending