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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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 I: Liabilities 1 – 4 NC Republicans do not have to raise the political bar closer to that of Democrats to seize power in 2010 if Democrats lower their political bar closer to that of Republicans. Toyota Motor Company has lost market share because of worldwide recalls of millions of its cars due to management mistakes
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Part I: Liabilities 1 – 4
NC Republicans do not have to raise the political bar closer to that of Democrats to seize power in 2010 if Democrats lower their political bar closer to that of Republicans.
Toyota Motor Company has lost market share because of worldwide recalls of millions of its cars due to management mistakes that led to frightening problems like mysterious acceleration, unreliable breaks and rollovers.[i] Meanwhile, Ford Motor Company just posted a $2.1 billion first quarter profit and is touting the best market share gain since 1977. “It benefited from Toyota’s safety recalls of millions of vehicles,” said Kelley Blue Book, “Ford was one of the top brands considered by Toyota owners who were shopping for a new car.”[ii]
Toyota’s brand is so damaged by sloppy standards that it must now offer promotional gimmicks like 0% loans and $2,000 rebates to lure customers. Likewise, the brand of the North Carolina Democrat Party is so tarnished by a decade of sloppy standards and corrupt leaders that the only way it has kept Republicans from taking over state government is by outspending them 3-to-1 on incentives and political promotional gimmicks.
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; that is what is happening in this state.
During the next few weeks I will be writing about the Top 10 political liabilities that have cost Democrats market share and turned the North Carolina Democratic Party into the Toyota Motor Company of state politics. Here are the first four:
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“Americans’ favorable rating of the Democratic Party dropped to 41% in the latest USA Today/Gallup poll, the lowest point in the 18 year history of this measure.”[i] USA Today/Gallup poll, April 8, 2010 Archbishop Desmond Tutu, winner of Nobel Peace Prize for his work to end apartheid in South Africa, told the following story when he spoke
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“Americans’ favorable rating of the Democratic Party dropped to 41% in the latest USA Today/Gallup poll, the lowest point in the 18 year history of this measure.”[i] USA Today/Gallup poll, April 8, 2010
Archbishop Desmond Tutu, winner of Nobel Peace Prize for his work to end apartheid in South Africa, told the following story when he spoke last May at the graduation ceremonies at the University of North Carolina at Chapel Hill: A traveler walking through the countryside stopped to admire a beautiful field of corn. He said to the farmer, “My, you and God have surely created a beautiful field of corn.” The farmer thanked the traveler and then said, “You should have seen it when God had it by Himself.”
Tutu built his entire commencement address on the notion that no problem is ever going to be solved unless someone steps up and does the hard work. “God allowed apartheid,” he said, “Apartheid was not ended by God. It was ended by His helpers.”
This year, we are faced with many great challenges … especially economic. However, the emerging greatest challenge is leadership … deciding whose ideas we are going to trust with the problems of the day. Ultimately, the ideas instituted will be those advocated by citizens who step up and do the hard work of winning campaigns. In 2008, it was the Obama camp. Today, it’s the Tea Party folks who are stepping up. These folks are tea’d. They are sick and tired of politicians pushing artificial sweetener on them in the form of government programs.
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“There’s no real financial infrastructure under the [state] Republican Party, and I reckon building one will take a long time,” he said. And doing so will be “sort of like straightening out a train wreck.” — Carter Wrenn, NC Republican Consultant This is a very fragile time for North Carolina House Democrats and Republicans. They all
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“There’s no real financial infrastructure under the [state] Republican Party, and I reckon building one will take a long time,” he said. And doing so will be “sort of like straightening out a train wreck.” — Carter Wrenn, NC Republican Consultant
This is a very fragile time for North Carolina House Democrats and Republicans. They all know that to some extent their political fortunes this year are tied to the results of President Obama’s reform agenda, beginning with healthcare legislation. If he prevails, the value of his stock as a reform leader will rebound and the tarnished image of the Democratic Party will be polished up a bit. If he fails, all bets are off. Republicans will have a huge surge in momentum which will yield more investors making larger investments, an event that would be devastating for Democrats who have always been able to count on a financial advantage to win the close races.
I am persuaded that Obama is smart enough to come out of the healthcare reform debate with a win. He has to. His entire agenda is at stake. He will make whatever sacrifices are necessary to declare a victory, “… a victory for the uninsured and the underinsured who can’t afford care.”
The greater likelihood is that by the time the May primaries roll around, the healthcare debate will be old news. Obama will be directing his energies to the other problematic issues for Democrats by then: the economy, jobs, and big government spending. There will be an uptick in the job approval numbers for the President and the Congress, and most incumbents will win their primaries. There have only been two states with primaries thus far: Illinois and Texas. All incumbent members of congress seeking reelection won their races.
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There was a drowning man, 50 feet from shore. A 50 foot rope lay on the beach. A Republican came along and seeing the man struggling threw him 25 feet of rope and said, “If you’ll swim half way I’ll pull you on in.” A Democrat came along and seeing the man struggling threw him
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There was a drowning man, 50 feet from shore. A 50 foot rope lay on the beach. A Republican came along and seeing the man struggling threw him 25 feet of rope and said, “If you’ll swim half way I’ll pull you on in.” A Democrat came along and seeing the man struggling threw him 50 feet of rope, then dropped the rope and went off to do another good deed. The man drowned.
As we begin the 2010 election year, all indicators are pointing favorably towards Republicans. We saw in Virginia and New Jersey last year that President Obama’s base is a mile wide and an inch deep. They didn’t vote. Obama’s liberal notions are beginning to raise doubts about his leadership in a nation where 8 out of 10 voters are either conservative or moderate.1 In our state, Democrats are rocked by scandal, a budget crisis and the fall of the Basnight/Rand Empire.
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