July 20, 2024

It’s the economy, stupid.

Those words from James Carville became a campaign slogan guiding Bill Clinton’s victory over George H.W. Bush in 1992. Much can be learned from that election, as documented in The War Room.

Those trained in economics are often troubled by voters’ lack of economic understanding and by dangerous economic policies proposed by candidates.

If the economy is doing well (which it is), why do so many people think the economy is in trouble?

Gross Domestic Product (GDP) is moving up, a sign of economic growth, not recession. Jobs are plentiful. The unemployment rate is low. The stock market is doing fine. And inflation has been reduced in recent months. So, why the disconnect between the economy and consumer confidence?

Why would any well-meaning candidate for president propose import tariffs as a revenue-generating alternative to income taxes?

Why do low-income citizens support the idea of tax cuts for the rich?

Here’s a new slogan: Economic ignorance is stupid.

Consider a new type of campaign messaging. Candidates show how economic conditions relate to personal well-being. They explain how tariffs work. Foreign exporters do not pay tariffs. Importers pay tariffs and pass the costs along to consumers. So, tariffs are like taxes on consumers.

Candidates can argue for policies intended to reduce rather than increase income inequality.

Consider a new type of candidate, someone who can make economics interesting, or even fun. These are politicians who understand economics and tell good stories.

Messaging about inflation, for example, needs to be well-crafted, laying bare relationships between measures like the Consumer Price Index (CPI) and people’s everyday experience of food prices, energy costs, and rent.

Elections can be won with intelligent, fact-based messaging and candidates who understand and can teach economics.

Enough of the fanfare. Let’s have an informed electorate.

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