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Elections and the Economy
Elections and the economy

Does the economy matter for elections? Given the amount of material written on the subject, we might expect the answer to be “yes, of course.” And for validation we have to look no further than the 2008 elections in the United States. The economy was in free-fall, as vividly shown by the collapse of the US financial industry and subsequent bailouts as well as by falling growth rates and unemployment reaching a 14-year high. Thus, citing the economy as the number one issue, voters dutifully punished the incumbent Republican Party in elections to both the presidency and Congress. In many other electoral contests, however, the economy apparently did not matter–or at least not in the way that we ...

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