Obama and the economy

Politics students may not always be avid readers of the Economist so a heads up on a feature in this week’s edition that may be of interest:

“WILL the next presidential election see Barack Obama return triumphantly to the White House for a second term as president of the world’s biggest economy? Or will a sluggish economic recovery, which has left over 14m Americans out of work, doom him to defeat in November 2012?

Models of the way economic factors affect presidential elections already exist. The best known was developed in the late 1970s by Ray Fair, an economist at Yale, who used macroeconomic indicators (such as inflation and the growth rate of income per person) to predict the vote share of the two main parties in subsequent elections. Mr Fair most recently updated his estimates at the end of July, when his model predicted a victory for Mr Obama in 2012 with 53.4% of the vote. In releasing his predictions, however, he noted that “a strong rebound results in a fairly solid Obama victory…and a double-dip recession…results in a fairly solid Republican victory.” Democratic hearts will have skipped a beat or two on hearing Ben Bernanke, the chairman of the Federal Reserve, say on October 4th that the recovery was “close to faltering”.

But is it right to focus exclusively on macroeconomic indicators?”

Interested? Read more here.