Click the Play Button Below for an Audio Summary [audio:https://www.johndavisconsulting.com/wp-content/uploads/2010/08/JDavisRpt81610.mp3|titles=JDavisRpt81610] Key Trends and their Impact on North Carolina’s 2010 General Election Races Advantage Democrats Advantage Republicans High unemployment this fall, coupled with high underemployment and high anxiety among the employed, is a potentially lethal concoction of political variables for North Carolina Democrats. Post: August 16,
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Click the Play Button Below for an Audio Summary |
[audio:https://www.johndavisconsulting.com/wp-content/uploads/2010/08/JDavisRpt81610.mp3|titles=JDavisRpt81610] |
Key Trends and their Impact on North Carolina’s 2010 General Election Races Advantage Democrats Advantage Republicans |
High unemployment this fall, coupled with high underemployment and high anxiety among the employed, is a potentially lethal concoction of political variables for North Carolina Democrats.
Post: August 16, 2010, by John Davis
If you will take a close look at the Senate and House Late Breaking Trends charts, you will see that I use “underemployment” rather than “unemployment.” Here is why:
Underemployment, at 18.5% today according to Gallup, is a far more politically significant predictor of voter behavior than unemployment. Underemployment includes both Americans who are unemployed and those who are working part-time but wanting full-time work. Especially hard hit are Americans without college degrees, where 23% are underemployed. Those voters are afraid, angry, and are not likely to vote for the ins come November.
Underemployment also helps in understanding why many voters among President Obama’s 2008 winning coalition have soured on politics in general … and Obama in particular. Young voters, those aged 18-to-29, have an underemployment rate of 28.4% … including 11.8% who are unemployed and 16.6% who are employed part-time but looking for full-time work. It’s no wonder that they have become disillusioned with political engagement.
Compounding the negative political fallout for Democrats of high underemployment is the lack of job security among those who are employed. According to a new study released today by Gallup, almost 40% of those who are employed are worried that their benefits will be reduced (39%), that they will be laid off or their wages cut (26%), or that their company will move their job overseas (8%).[i]
Add high underemployment to high anxiety among the employed and you can readily see why Democrats have a growing political problem.
Mortimer Zuckerman, chairman and editor in chief of US News and World Report, wrote an Op Ed piece in today’s WSJ[ii] in which he makes the following disconcerting observations:
- We are at least 2.5 million jobs short of getting back to the unemployment rate of 8% promised by the Obama administration
- We are coming out of the current recession at a 2.4% growth rate, as compared to the normal post-World War II recovery rate of 6% real GDP
- Real unemployment today is well above the headline number of 9.5% if you factor in the 1,115,000 people who gave up hope of finding work in the last three months
Zuckerman’s conclusions echo those of Federal Reserve Chairman Ben Bernankes, who told Congress last month that the country’s economic outlook remains “unusually uncertain.”[iii]
In politics, “unusual uncertainty” yields unusual turnover.
How long will it take to restore jobs for the underemployed and job security for the employed? “In all likelihood,” Bernanke told the US Senate Banking Committee in July, “a significant amount of time will be required to restore the nearly 8.5 million jobs that were lost over 2008 and 2009.”
The few short months remaining between now and Election Day November 2010 does not a significant amount of time make. High real unemployment this fall, coupled with high underemployment and high anxiety among the employed, is a potentially lethal concoction of political variables for North Carolina Democrats.
Now you know why I use underemployment rather than just unemployment. The politics of 2010 is being driven by numbers packing a much more powerful political punch than a mere 10% unemployment rate.
Tomorrow, I will being add a daily tracking chart to the bottom of the Senate and House Late Breaking Trends daily reports so that you can see how the partisan political advantage changes over time.
Meanwhile, take a look at the Late Breaking Trends charts above or in the sidebar. You will see that Republicans continue to have a partisan political advantage in both the state House and state Senate campaigns … despite the financial advantage of the Democratic Party. That’s because of underemployment.
[i] http://www.gallup.com/poll/142154/Workers-Elevated-Alert-Potential-Job-Pay-Cuts.aspx
[ii] http://online.wsj.com/article/SB10001424052748703960004575427332237529948.html
[iii] http://money.cnn.com/2010/07/21/news/economy/bernanke_testimony/index.htm
“Hunt criticized the Democratic controlled General Assembly for raising taxes in 1991 during the recession, saying the budgetary shortfall was ‘sheer government mismanagement.’”[i] Rob Christensen, News & Observer, The Paradox of Tar Heel Politics Twenty-five years ago, in Washington DC, U.S. Senator Jesse Helms, a North Carolina Republican, was beginning his third term in the
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“Hunt criticized the Democratic controlled General Assembly for raising taxes in 1991 during the recession, saying the budgetary shortfall was ‘sheer government mismanagement.’”[i] Rob Christensen, News & Observer, The Paradox of Tar Heel Politics
Twenty-five years ago, in Washington DC, U.S. Senator Jesse Helms, a North Carolina Republican, was beginning his third term in the world’s greatest deliberative body.
In Raleigh, former two-term Governor Jim Hunt, a Democrat, was returning to the practice of law. He had lost to Helms in the 1984 epic battle of political titans in the US Senate race. Hunt was all washed up; a mere single-entry footnote in the annals of state political history. Wrong.
Jim Hunt, today’s patriarch of the North Carolina Democratic Party, went on to serve a third and fourth term as Governor, a first since 1776. He achieved an extraordinary and unprecedented list of accomplishments … not the least of which was the exalted partisan political triumph of becoming the state Republican Party’s worst nightmare of the past two-and-a-half decades.
As News & Observer political writer Rob Christensen pointed out in his book, The Paradox of Tar Heel Politics, “Hunt kept the Democratic Party from going under during a Republican tide by his political skills, ideological nimbleness, and the fact that he never stopped working.”[ii]
Jim Hunt has become the Michael Jordan, the David Thompson, and the Christian Laettner of modern-day North Carolina politics … that player that is simply better than everyone else on the court. You know the one … the one with the most wins.
This report examines the teachable personal qualities of Jim Hunt, such as “ideological nimbleness” and work ethic, along with the political skills that have made Jim Hunt the extraordinary winner that he has become. What if Hunt had gone to Washington DC in 1985 and Helms had stayed in North Carolina? Is there a Republican Jim Hunt?
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Part IV: Liability 9 “The Toyota affair emphasizes some basic points of management. First, any company, no matter how large and how famous for its merits, can stumble into grave error. Second, damaged pride and nervous fear make it difficult to correct the error in good time. Third, management decisions should normally never be taken
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Part IV: Liability 9
“The Toyota affair emphasizes some basic points of management. First, any company, no matter how large and how famous for its merits, can stumble into grave error. Second, damaged pride and nervous fear make it difficult to correct the error in good time. Third, management decisions should normally never be taken on the basis of profit forecasts alone.” Edward de Bono & Robert Heller, The Toyota disaster – and what we can learn from it[i]
This is Part IV in a series of reports suggesting that the North Carolina Democratic Party is much like the Toyota Motor Company in that they are both among the great organizational successes in American history, and both are losing market share because of sloppy standards and corrupt leaders. Parts I, II, and III can be found at www.johndavisconsulting.com.
The 10 premises in the series, all political liabilities, lead to the following conclusion: Many believe that the only way North Carolina Republicans can seize power in 2010 is to raise the political bar closer to that of Democrats. Well, what if Democrats lower their political bar closer to the GOP? Republicans win. And that is what is happening in this state.
The following paragraph is restated from the last report for emphasis: What makes 2010 potentially catastrophic for North Carolina Democrats is that the 10 political liabilities are unfolding at the same time. Any one or several of them would not be politically catastrophic. Many times down through the decades, Democrats have weathered eras of corrupt leaders; they have overcome Republican-friendly years, weak governors, high turnover of incumbents, unpopular presidents, budget problems, economic slumps, anti-establishment voters, third party movements, low turnout, declining party loyalty, high unemployment, unpopular wars and a surge in opposition strength … but not at the same time like we are seeing today.
In Parts I, II and III of the series, I wrote about liabilities including:
#1: A Weak Democratic Governor Will be a Drag on Democratic Candidates
#2: Basnight’s Cash on Hand Down by 30% with a Tougher Hill to Climb
#3: Democrats have all of the Power and Get all of the Blame
#4: A Nation and State of Voters Fearing Financial Collapse Due to Spending
#5: Corrupt Leaders: Toyota the Safety Automaker; Perdue the Ethics Governor
#6: The Issue is the Economy, and Democrats Own the Economy
#7: Regnat Populus! Dissatisfied Voters View “Ins” as Dismissive and Un-American
#8: Enthusiasm + Internet = Turnout; Party Infrastructural Advantage Threatened
Here is number nine:
#9: Protective Wall of Silence Exposed Revealing Power-over-Principle Imperative
Those who make the laws should abide by them. Those who would be leaders should lead by example. These two moral imperatives have been overshadowed in the North Carolina Democratic Party by their #1 moral imperative: Partisan power at all costs.
North Carolina Democrats offer protection for their errant leaders behind a wall of silence. If one among them breaks the law (quid pro quo deals, Cannonsgate, quid pro quo deals, illegal flights, quid pro quo deals, tax evasion, and more quid pro quo deals), or compromises principles and values (Law Enforcement Associates’ no-bid contract, university job plus 88% salary increase for Gov’s wife, a judicial district for your DA buddy who lost his election, using the “N” word in front of your six-year-old child, $27,012 for limo services in France), the first sense of moral obligation for North Carolina Democrats is to keep quiet and bide their time.
Keep Your Mouth Shut Long Enough, and the Problem will Go Away
Toyota handled its problems with defective accelerator pedals on millions of its vehicles the same way North Carolina Democrats have handled their problems with defective leaders: they stonewalled the public. “They did try to hide it — that’s what we accused them of — and they’ve agreed to that,” U.S. Transportation Secretary Ray LaHood told the Associated Press, upon announcing the largest fine in department history in April of this year. Toyota put profit over principle. They knew parts were defective and kept it under wraps. If it were not for whistleblowers forcing exposure, people would still be dying in runaway Toyota automobiles.
Democrats know that they can use their unchecked power to muscle everyone with a legislative agenda to be a stone in their protective wall of silence. From lobbyists and governmental agency heads, to members of boards and commissions, education officials … even some news reporters; all are aware that you better protect the leadership at all costs or you don’t get access.
No access means no money, no new buildings, no inside scoop, no road contracts … no nothing.
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Part III: Liabilities 7-8 “Our first job is to vote out all politicians, local, state and federal, who work against the founding philosophy and principals of our country.”[i] W. David Stedman, Ret. Chmn., Stedman Corporation, Asheboro, The Destruction of the Great American Dream This is Part III in a series of reports suggesting that the
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Part III: Liabilities 7-8
“Our first job is to vote out all politicians, local, state and federal, who work against the founding philosophy and principals of our country.”[i]
W. David Stedman, Ret. Chmn., Stedman Corporation, Asheboro, The Destruction of the Great American Dream
This is Part III in a series of reports suggesting that the North Carolina Democratic Party is much like the Toyota Motor Company in that they are both among the great organizational successes in American history, and both are losing market share because of sloppy standards and corrupt leaders.
Forbes.com carried an editorial on April 26, 2010, titled, The Real Reason for Toyota’s Troubles, in which Kenneth Brill, founder of the Uptime Institute, hypothesized that the random catastrophic failure of Toyota’s acceleration systems was most likely the result of multiple and perhaps unrelated interacting causes. “At least five and as many as ten things must interact to produce the failure of a well-designed system,” said Brill, “Any one thing by itself will cause a problem but not a catastrophic event.”
What makes 2010 potentially catastrophic for North Carolina Democrats is that there are ten political liabilities unfolding at the same time. Any one or several of the Top 10 Political Liabilities Leading to a Loss of Market Share would not be politically catastrophic. Many times down through the decades, Democrats have weathered eras of corrupt leaders; they have overcome Republican-friendly years, weak governors, high turnover of incumbents, unpopular presidents, budget problems, economic slumps, anti-establishment voters, third party movements, low turnout, declining party loyalty, high unemployment, unpopular wars and a surge in opposition strength … but not at the same time like we are seeing today.
In Parts I and II of the series, I wrote about liabilities including:
#1: A Weak Democratic Governor Will be a Drag on Democratic Candidates
#2: Basnight’s Cash on Hand Down by 30% with a Tougher Hill to Climb
#3: Democrats have all of the Power and Get all of the Blame
#4: A Nation and State of Voters Fearing Financial Collapse Due to Spending
#5: Corrupt Leaders: Toyota the Safety Automaker; Perdue the Ethics Governor
#6: The Issue is the Economy, and Democrats Own the Economy
Here are liabilities 7 and 8:
#7: Regnat Populus! Dissatisfied Voters View “Ins” as Dismissive and Un-American
Wednesday, Gallup announced that so far in 2010, an average of only 23% of Americans are satisfied with the way things are going in the United States. The 2010 average is “well below the 40% historical average” over the past 30 years, and is the “lowest Gallup has measured in a midterm election year, dating to 1982.”[ii]
To put this percentage in perspective, the all-time high was 71% in February, 1999, when we were enjoying the longest period of economic expansion in U.S. history. The all-time low was 7% in October 2008, leading to catastrophic losses for the “ins”: Republicans.
The dissatisfaction sweeping the county first became apparent last summer with TV news footage of awkward and embarrassed incumbents taken aback by the ire of finger-wagging-in-your-face constituents at Town Hall Meetings. The political significance of the dissatisfaction played out with upsets in the governors’ races in Virginia and New Jersey, and with the shocking upset election of Republican Scott Brown in former Sen. Ted Kennedy’s seat.
In April, another key antiestablishment signal came with the stunning turnabout in the U.S. Senate GOP primary race in Florida, where incumbent GOP Gov. Charlie Crist dropped out to run as an Independent because the more conservative GOP candidate had a 2-to-1 advantage.
Last week, we saw the antiestablishment ouster of incumbents like Republican Bob Bennett in Utah and West Virginia Democrat Allan Mollohan. This week we saw the antiestablishment overthrow of Pennsylvania’s Republican-turned-Democrat Arlen Specter, along with the big Tea Party antiestablishment upset in Kentucky as Rand Paul was elected GOP Senate nominee despite Republican Party establishment opposition.
In Arkansas, Democratic Sen. Blanche Lincoln was forced into a primary runoff with Lt. Gov. Bill Halter as the antiestablishment/anti-Washington virus spread west of the Mississippi, reinforcing the meaning of the state’s motto, “Regnat Populus,” meaning “The People Rule.”
David Stedman, Ret. Chmn., Stedman Corporation, Asheboro, writes in his latest book, The Destruction of the Great American Dream, “Our first job is to vote out all politicians, local, state and federal, who work against the founding philosophy and principals of our country.”[iii] Based on what voters have done since last summer, it looks like a lot of folks read his book!
Just like Republicans, who were in trouble in North Carolina when satisfaction with the direction of the country was low in 2008, Democrats in North Carolina are in trouble with low satisfaction with the direction of the country in 2010 … the “lowest Gallup has measured in a midterm election year, dating to 1982.”v]
#8: Enthusiasm + Internet = Turnout; Party Infrastructural Advantage Threatened
Imagine a parade without a leader; a parade that simply forms in the street and grows in number as people come out of their kitchens and backyards and join those already on the march. That’s what’s happening in American politics today. Pundits and party pros snobbishly criticize the lack of organization of groups like the Tea Party movement, in denial that these folks are a bottom up parade of angry citizens who are using the Internet rather than the party as a means of communicating with each other and turning out their like-minded voters.
In a Politico story yesterday titled, Activists seize control of politics, Jim Vande Hei wrote, “The old structures that protected incumbent power are weakening. New structures, from partisan news outlets to online social networks, are giving anti-establishment politicians access to two essential elements of effective campaigns: publicity and financial support.”[v]
Take a look at the following political ad for Alabama Commissioner of Agriculture. This is a great example of the power of the internet as an equalizer to traditional party communications advantages:
http://www.youtube.com/watch?v=jU7fhIO7DG0&NR=1
This ad has been posted for one day and has been seen by 818,244 people … including you. Cost to the candidate for those 818,244 views? $0. This guy is going to win without the party.
Even the most liberal sources acknowledge the Internet as a means to bypass the traditional party infrastructures and win campaigns. This week, Markos Moulitsas of the liberal Daily Kos said, “The old structures have been eroding, … we’re building a world in which people can bypass their parties’ institutional forces and make up their own minds on who to support.”
On Tuesday, Gallup unveiled a new national poll on enthusiasm in which they concluded, “Conservatives are significantly more enthusiastic about voting in this fall’s congressional elections than are liberals or moderates. Those who say they are “very” conservative are the most enthusiastic of all.”
Experts have concluded that catastrophic failure of Toyota’s acceleration systems was most likely the result of multiple causes happening at the same time. What makes 2010 potentially catastrophic for North Carolina Democrats is that there are 10 political liabilities unfolding at the same time, not the least of which are the historic low level of satisfaction with the direction of the country and the high level of enthusiasm for voting among conservatives.
[i] The Destruction of the Great American Dream, W. David Stedman, Published 2009; Pg. 37
[ii] Gallup, May 19, 2010; http://www.gallup.com/poll; Satisfaction with U.S. Historically Low for Midterm Year
[iii] The Destruction of the Great American Dream, W. David Stedman, Published 2009; Pg. 37
[iv] Gallup, May 19, 2010; http://www.gallup.com/poll; Satisfaction with U.S. Historically Low for Midterm Year
[v] http://www.politico.com/news/stories/0510/37468.html#ixzz0oOWBrAJG