Why This President Owns This Economy

Our most recent book is The Comeback: The 2024 Elections and American Politics. The first year of the second Trump administration has been full of ominous developments. 

War and economic woes will hurt the GOP in November.  The only question is how much.

Economist Justin Wolfers:

For nine out of the last 10 presidencies, if you’d said, “How much should we blame the president for what’s going on with the economy right now?” I would have said that the president is just one factor among many.

That’s what I would have said nine out of 10 times. This is the 10th time.

There’s literally no question about the cause of the current oil price spike. It is that we decided to go to war in Iran on an open-ended, ill-defined mission, and we’re not quite sure what to do. The Iranians took over the Strait of Hormuz, and now the global economy is substantially fractured and global energy markets are in disarray. There’s no question about what caused that. We know that because we actually saw things get a little bit better in June during the ceasefire, but those happy days are behind us.

There’s also no question that tariffs are a complete own goal. They’ve led to higher prices paid by Americans. And that, I think, explains why, if you look at the United States compared to our peers in the G7—think of these as other economies that are kind of like, if the U.S. economy had mates, this is who they’d be—comparable large industrialized economies, the United States right now has higher inflation than any of them. We’re number one, but it’s not one of those good number ones.

And let me just add: it really does hurt my heart because we know how not to screw things up. Any economics textbook, anyone who’s taken introductory economics, would know that there are large economic costs to going to war. They would know that starting a global trade war in a chaotic and incoherent fashion is all downside and no upside.

Openly Weaponizing Federal Grants

Our most recent book is The Comeback: The 2024 Elections and American Politics. The second Trump administration has been full of ominous developments. 

Tony Romm and Brad Plumer at NYT:

When the Trump administration canceled more than $7.5 billion in Biden-era federal grants for clean energy projects in October, it framed the move as an urgent corrective to protect taxpayer funds from waste.

But it wasn’t true.

In little-noticed court documents, federal officials acknowledged this month that they had terminated the funding “based solely” on political criteria, targeting projects in states that were represented by Democrats and had voted for Kamala Harris, the party’s presidential nominee, in the 2024 election.

The admission showed how President Trump has weaponized the provision of federal education, energy, health, housing and infrastructure aid in his second term. Far from rooting out the sort of misspending that Mr. Trump sees as rife in Washington, the White House has instead sought to leverage the budget as a tool to assist its allies — or as a cudgel to hurt the president’s foes.

The saga illustrates the stakes as the Trump administration is completing a set of rules that would provide the president even greater control over more than $1 trillion in annual federal grants. To critics, the new regulation would only make it easier for Mr. Trump to strike wider tranches of congressionally approved funding over political differences.

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“With one exception,” a lawyer for the Energy Department conceded in a court filing this month, “the 284 terminated grants had a recipient location and/or at least one place of performance in a state that awarded its electoral votes to Kamala Harris in the 2024 election and has two Democratic-caucusing senators.”

The lawyer acknowledged that none of the grants were included in the October terminations “based on any programmatic, statutory, cost-reduction or performance-based factor.”

In contrast, the administration left untouched hundreds of additional energy grants in states that were represented by Republicans and had backed Mr. Trump in the last election, even though the Energy Department had recommended canceling them, the government confirmed in the July court filing.

GOP Gas Pains

Our most recent book is The Comeback: The 2024 Elections and American Politics. It includes a chapter on congressional and state elections.  

 Jessie Blaeser at POLITICO:

Voters’ anxieties about fuel prices could give Democrats a boost ahead of the midterms, further strengthening the Democratic voting base and putting strains on the MAGA coalition as the increasingly unpopular war in Iran drags on. A plurality of Americans — 46 percent — say the change in gas prices will impact how they plan to vote come November.

Most voters overestimated the change in gas prices in their area, according to the analysis of polling and granular pricing data provided by OPIS, a Dow Jones company that tracks gas prices. That includes majorities of voters who supported President Donald Trump and also those who supported former Vice President Kamala Harris.

Roughly one in four Americans say gas in their local area has risen by $3.00 or more. But no zip code has actually seen that degree of change on average in the year and a half since Trump took office, as of early July.

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What’s more, American’s perceptions do not quickly change even when prices do. The POLITICO Poll asked about gas prices in both May, when they were near their peak, and July, when they had dipped.

The results were the same in both.

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Roughly 63 percent of Americans selected “the war with Iran” as the primary reason why gas prices have increased since Trump took office, including 59 percent of Trump voters and 70 percent of Harris voters.

Trump Making Things Worse for Republicans

Our most recent book is The Comeback: The 2024 Elections and American Politics. It includes a chapter on congressional and state elections.  

An Ipsos/WP poll shows Democrats with only a slight lead in the congressional generic ballot. But other polls and the fundamentals of the election suggest a blowout.

 Sarah Jones & Jason Easley at The Daily:

The Republicans were hoping that the Iran war would end, inflation and prices would drop, and voters would put the pitchforks and torches down and go back to being just angry.

Those hopes have been shattered as the Iran peace process fell apart. The war is back on. Oil is at $100 a barrel. Trump has resumed his tariff obsession, and things went back to being the darkest timeline for Republicans.

The new Emerson College Poll was the stuff of Democratic dreams and Republican nightmares.

According to the Emerson Poll:

A new Emerson College Polling survey of likely 2026 voters finds the Democrats with an 11-point advantage over the Republicans on the generic congressional ballot, leading 53% to 42%. President Trump holds a 39% job approval rating, consistent with the past two months, whereas his disapproval increased another point, to 57%.

“Driving the Democrats’ significant lead on the ballot are women voters, who break for the Democratic candidate by a 27-point margin, 56% to 39%, while men are more split: 49% support the Democrat and 44%

Midsummer Intensity

Our most recent book is The Comeback: The 2024 Elections and American Politics. It includes a chapter on congressional and state elections.  

An Ipsos/WP poll shows Democrats with only a slight lead in the congressional generic ballot.

Chris Stirewalt at The Hill:

There is a lot of evidence to support the idea that both parties are unpopular, as that Ipsos/Washington Post poll affirms. And that’s what you’d expect in a nation in which voters increasingly see themselves as independents.

Still, the problem for the GOP is that Democrats and Democratic leaners who loathe their own party are still fired up to vote against Republicans.

Democrats in the Post poll enjoy a 10-point advantage over Republicans on voter enthusiasm, 8 points more than in 2018, when Democrats romped. “And more than 7 in 10 Democrats say it is ‘more important’ to vote in 2026 than in previous midterm elections,” says the Post, “compared with just over half of Republicans.”

Now think back to that tied generic ballot of July 2010. The same poll that boosted morale at the Obama White House showed Republicans with a double-digit lead on voter enthusiasm.

And it goes on from there. In July 2014, Democrats were actually ahead in generic congressional ballot polls, but the enthusiasm edge at the time belonged squarely to Republicans.

The polls in July 2018 turned out to be very predictive of the 8-point stomping Democrats delivered in House votes nationally on their way to the best midterm for their party since the Watergate washout of 1974. No surprise that they had the edge on enthusiasm, too.

Four years later, summertime polls in 2022 started cropping up in July showing Democrats actually in the lead on the generic ballot. And, yet again, the party in power started talking seriously about holding the House. And while the Republicans failed to deliver on their own overhyped promises of a red wave, the ripple was enough to take back the House.

The best evidence for the GOP’s fizzle wasn’t in the generic ballot but, again, in the measurement of enthusiasm. After the Supreme Court’s decision overturning Roe v. Wade, Democrats rallied and closed the gap with Republicans. They might not have been willing to come out to boost a faltering Joe Biden, but Democrats were absolutely willing to come vote against Republicans.

Just more than 100 days before the elections, can Republicans replicate a similar enthusiasm booster for a base dispirited by high prices, the Iran war, very swampy behavior in Washington and a president who’s still trying to settle old scores?

Whenever incumbent parties are losing, they say they want a “choice not a referendum.” That’s what Republicans are saying this time with their “hate election” business. The problem for that plan is that a lot of Democrats already hate their own party, but they definitely hate Trump more.

The Iran War is getting worse, and oil prices are rising again.  The economic outlook might brighten this fall, but for GOP fortunes, any improvement will be too little, too late.  Perceptions bake in by Labor Day.

Trump to Hill Republicans: Meh!

Our most recent book is The Comeback: The 2024 Elections and American Politics. It includes a chapter on congressional and state elections.  

ADAM WREN, DASHA BURNS and WILL STEAKIN at POLITICO:

House Republicans are hurtling toward August recess and a 105-day sprint to midterm elections, and President Donald Trump is showing little interest in boosting their prospects.

"Zero," a person close to the president told Playbook when asked about his engagement on the Hill.

Trump "doesn't care about anything beyond SAVE, Iran, and the ballroom,” another White House ally put it.

Republicans are staring down Election Day with a short list of accomplishments to sell, forcing them to reconcile two truths: The president doesn’t appear interested in helping Speaker Mike Johnson ram legislation over the finish line, and one of the only cases they have to make back home is to frame Democrats as communists.

Rep. Lisa McClain (Mich.), the GOP conference chair, who not long ago shared Republicans’ midterm messaging strategy with Playbook, told us she’s whittled that down to something simpler: Democrats are crazy.

“We voted for capitalism,” McCLain told Playbook. “We voted to lower your taxes: every Democrat voted to raise your taxes, and they are crazy. They want communism. They hate this country. They hate what this country stands for. That’s crazy.”

Never mind the president pitching federal stakes in private companies himself, McClain said. “He’s doing that to level the playing field for America.”

Is the White House leaning into their agreed-upon messaging enough? “No,” she said.

“We need to use it, and then when we think we've exhausted it, we need to use it some more,” McCLain said.

Voter Motivation 2026

Our most recent book is The Comeback: The 2024 Elections and American Politics. It includes a chapter on congressional and state elections.  

Gregory S. Schneider and Scott Clement at WP:

Americans prefer Democrats to Republicans in the congressional midterm elections by only a slim margin, but Democratic supporters are far more motivated to vote, according to a Washington Post-Ipsos poll.

Because of partisan redistricting that favors Republicans this year, analysts estimate that Democrats need to win by three to four percentage points overall to gain a majority in the House. The poll shows Democrats leading Republicans by about that margin, 48 percent to 45 percent.

The blue advantage grows to eight points among those “absolutely certain to vote,” with 53 percent of highly motivated voters supporting Democrats and 45 percent supporting Republicans.

Republicans are not losing by a wide margin among the broader electorate despite President Donald Trump’s deep unpopularity and broad concerns about the economy, the war with Iran and immigration issues.

But their supporters just aren’t as energized to turn up at the polls, the Post-Ipsos poll suggests. If Trump is able to mitigate some top concerns by Election Day — for example, by bringing down the price of gasoline or ending the war with Iran — then his push to draw new congressional districts in red states could be enough to retain the GOP majority in the House.

But the latest news suggests that the GOP's best-case scenario is increasingly unlikely.