Real Housewives, US Election and Economics

You may remember a previous post I did on  ‘WetheEconomy’ now there is ‘WetheVoters’ The site has 20 short films designed to inform, inspire and ultimately activate voters nationwide with fresh perspectives on the subjects of democracy, elections and U.S. governance.

Below is a parody of the television programme “Real Housewives” with a political and economics twist. It shows a good example example of the current political climate and some possible avenues for change. On the one side you have Jessica who is concerned with the government balancing its budget and Lara who believes that the government needs to spend more on infrastructure etc to stimulate the economy and creates jobs. She also uses the austerity measures in the EU as an example to support her opinion. Jessica does make the point as to who is going to pay for all this spending – our kids. Then there is Vanessa who is neutral although does get into trouble by informing Lara that Jessica thinks the government should increase defence spending. From this point it gets quite heated but they do make up. Enjoy!

Dow Jones Election Indicator

I like this Election Indicator from the NYT which suggests that a healthy performing Dow Jones Industrial Average (DJIA) usually means victory for the incumbent party in the US election. Their chart ranks 28 presidential terms since 1900 – part of the chart is below – complete chart can be found at “US Presidential Stock Markets”.

When the DJIA has risen more than 5% a year the incumbent party has won the election on 11 occasions to losing on 3. When the market fell below a 5% growth rate the incumbent party has lost 8 out of 13 elections.

Obama has been doing well with a compound annual gain of 8.8%.