Job One

The only way Obama can pull his presidency back from the brink.

To understand the lockstep relationship between Obama's popularity and the state of the economy, it helps to look at two previous presidents who, like Obama, confronted a failing economy: Franklin Roosevelt and Ronald Reagan.

When Roosevelt took office in 1933, unemployment was almost 25 percent, but, during his first term, it fell steadily-- to less than 14 percent in November 1936. The economy, in other words, seemed to be healing. Gallup wasn't measuring presidential approval then, but FDR's rising popularity was evident in election results: Democrats picked up congressional seats in 1934 and 1936, despite already enjoying huge majorities; and, in 1936, Roosevelt won in a landslide, carrying the Electoral College by the largest margin ever.

The arc of Reagan's popularity illustrates the same phenomenon. In July 1981, when unemployment stood at 7.2 percent--what it had been at the end of Carter's presidency--only 28 percent of Gallup's respondents disapproved of Reagan. But, by January 1983, after unemployment had risen to 10.8 percent the previous month, Reagan's disapproval rating was a whopping 54 percent. In November 1982, even a crippled Democratic Party had been able to win seats in the House and Senate. During the same time, Reagan benefited politically from surviving an assassination attempt, got Congress to approve his signature tax and budget programs, and certainly didn't make egregious political errors. What mattered, finally, was the economy. And, as the economy turned around, so did the GOP's political prospects. By November 1984, unemployment had dropped back to 7.2 percent, and only 30 percent of respondents disapproved of Reagan. In that month's election, he claimed a landslide victory over Walter Mondale. (To see how closely Reagan's disapproval ratings tracked unemployment, see Figure 1.)

For both Roosevelt and Reagan, what mattered was not the actual state of the economy, but whether things were getting better or worse. The unemployment rate was still incredibly high when FDR won reelection in 1936, and Reagan didn't actually lower unemployment between the time he took office and the time he was reelected--he only managed to get it back to where it had been at the start of his term. But, in both 1936 and 1984, the trajectory of unemployment was downward, and that was the key.

Moreover, history suggests that it is not enough for the economy to be headed in the right direction; it has to be headed in the right direction in tangible ways that voters can see. Economists pronounced the recession of the early 1990s over in March 1991. But, when unemployment continued to rise through 1991 and most of 1992 and real wages stagnated, the public perceived the economy to still be declining--and it punished George H.W. Bush accordingly.

Clinton, who was harmed by wage stagnation during his first two years, benefited dramatically in his second term from the public's perception of economic improvement. In 1998, Clinton was involved in the first impeachment scandal since Watergate, and it was widely expected that his party would lose seats in the midterm elections. But economic good news trumped Monica Lewinsky. As the unemployment rate went down during this period, Clinton's popularity increased. And Democrats ended up winning House seats in 1998 and House and Senate seats in 2000. (Figure 2 shows the close correlation between Clinton's disapproval numbers and the unemployment rate.)

To be sure, there can be mitigating factors that counter the effect a declining economy has on a president's popularity. In the first nine months of George W. Bush's administration, as the unemployment rate rose from 4.2 percent to 5 percent, his disapproval numbers rose from 25 percent to 39 percent. That was to be expected. But unemployment continued to rise, climbing to 5.9 percent in April 2002, while Bush's disapproval rating fell to 19 percent. The reason, of course, was that public approval of Bush's response to September 11 overshadowed doubts about his handling of the economy.

 

COMMENTS (19)

09/22/2009 - 1:51am EDT |

Judis jumps back in the game joining The Editors in tentatively applauding Obama, Baucus and the insurance industry for being on the brink of health care "reform". Really, that's what he'll call it when it's his turn to drink the kool-aid. Or does he make the stuff now?

But why so long? Did Marty have him on suspension...or is he working on the new book, "My Long Road From Main Street To Wall Street: The Inflection Point Years"

And here we go again:

Yesterday:

"The Republican Party Is Falling Apart At The Seams---Democrats Likely To Rule For Generations To Come!!"

Today:

"Polls Show Republicans Surging In Key States.....Obama, Democrats Risk Losing It All [OH GOD] Forever!!!"

You guys are fucking ... view full comment

09/22/2009 - 2:08am EDT |

I wouldn't mind a chart that simply tracked disapproval and unemployment since disapproval has been polled. For that matter, we could throw in an approval line too. The presentation here raises two questions: First, what about the periods not shown? For example, I assume that Clinton's early first term troubles -- one of the precedents that is driving Judis's concerns -- could *not* be explained by unemployment, because that chart is not shown and Judis offers in passing a preemptive, economic explanation for its absence -- that is, Clinton was hit by "wage stagnation." But is wage stagnation really a good explanation for Clinton's Obama-esque early rise in disapproval? What about that ... view full comment

09/22/2009 - 2:53am EDT |

Walton, you are insane and the sad thing is is that you don't know it. John Judis as David Broder is the dumbest thing that I have ever read on this website. Jonathan Chait - who is about a billion times smarter than you - wrote an excellent piece on the fact that even partial health care reform will be a radical step forward. But no, if you can't have the whole loaf, you don't want any of it. The late Richard Rorty wrote about your kind when he said that radicals desire the sublime while liberals are satisfied with the merely beautiful. Actually, he was writing about people far smarter than you but your attitude is redolent of his apercu.

09/22/2009 - 4:33am EDT |

Lib,

Chait, Judis and Rorty [Rorty from the grave] can no doubt run rings around me intellectually. All academics can. But that doesn't make them any less subservient to the WHCD ilk that pervades the mainstream media. They ooze the newspeak of those who get almost all the information they think they need to know about the world around us....from each other. They all read the same stuff skewed left or right. They all think comfortably within the parameters of the inflection points that embrace state capitalism while still yammering on and on about stuff like freedom and democracy at home and abroad. As though the two the bump into each other only occasional with glancing blows.

And if more th ... view full comment

09/22/2009 - 7:20am EDT |

It's really, really, really the economy, stupid.

Obama can't just "hope." After health care reform in some form or another is passed, Obama has to get medieval on unemployment. End of story.

It's insane that China is cspturing the green jobs market.

09/22/2009 - 7:30am EDT |

Every other stable and functional discussion group or message board I've ever used has allowed users to customize their interaction with other users. For example, to receive alerts when a favorite other commenter posts a message. Or, more to the point, to ignore messages from particular commenters, such that posts from known trolls simply don't appear in threads at all. TNR.com used to have some of these features; now it does not, or if it does, they are prohibitively hard to find to activate. This is a major step backwards. These tools -- the ability to follow or ignore posts by particular individuals -- are fundamental and necessary to allowing any useful online discussion. Without these t ... view full comment

09/22/2009 - 10:08am EDT |

rhubarbs said,

"...These tools -- the ability to follow or ignore posts by particular individuals -- are fundamental and necessary to allowing any useful online discussion..."

I second that. In particular, there's a particular maundering ubertroll I'd love to be able to filter out.

09/22/2009 - 10:45am EDT |

Aside from George who always has a pretty good handle on things, nothing to see here but the same old BS. Now I remember why I stopped commenting here, damn this rag needs an infusion of fresh commenting blood.

09/22/2009 - 1:36pm EDT |

rube:

....Or, more to the point, to ignore messages from particular commenters, such that posts from known trolls simply don't appear in threads at all. TNR.com used to have some of these features; now it does not, or if it does, they are prohibitively hard to find to activate...

george:

Or why not just outright censor them....or kick them out of here? Right, Mr. Rube? We're Good and they're Evil,

You guys are priceless.

How are you NOT able to ignore alleged trols in here? Are you reading trolls now? Then stop reading them. After all, if trolls come in here to "ruin it" and no one ever reads them, what's ruined?

What is it about particular "trolls" that so disturb you if you don't have to read ... view full comment

09/22/2009 - 1:49pm EDT |

b1462:

In particular, there's a particular maundering ubertroll I'd love to be able to filter out.

george:

More of the same.

Try this:

1]

You come into TNR talkback and there's the ubertroll

2]

You say to yourself, "I know. I won't read him this time"

3]

You don't read him this time. Or ever again.

Problem solved. I know it's not the same as sending Jack Bauer in after him but like Macguyver you sometimes have to improvise.

Oh, and just in case that ubertroll happens to be me I'll repeat myself:

I've thought about it some and as close as I can figure, people recoil from me here because:

1]

I'm annoying when I poke around in things that generally discomfit people who like their topical discussions linear ... view full comment

09/22/2009 - 3:15pm EDT |

What the hell! I think I'll fling in a comment on the article, instead of the commentators.

I think Judis, like Carville before him, has it fundamentally right: It's always the economy, stupid! Rule 1: When people feel good, or at least better, they reward the incumbents. When they feel bad, or no better, they punish the incumbents. Rule 2: Unless the incumbents are Hoover, Mellon, et al, the next guy(s) only get so long to blame things on their predecessors. Rule 3: The other rules are hard on politicians, who, like economists, secretly understand that there are limits to their ability to impact the private economy.

The fact that most economists, notably including Ms. Romer, expect the ... view full comment

09/22/2009 - 6:22pm EDT |

isernoff:

I think Judis, like Carville before him, has it fundamentally right: It's always the economy, stupid!

george:

No, it's always the enormous influence [and the inherent potential for legalized plutocracy] those with poitical and economic power have OVER THE ECONOMY, stupid!!

Judis used to grasp this more clearly. Now he still grasps it of course but he has sold his soul to the media moguls big and small who earn a living shoveling state capitalism under the rug. Some do it self-consciously, others are sadly blind to it because they read the stuff of those who either do the shoveling or are blinkered by it themselves.

Where is THIS in the Judis ChartWorld?

Max Baucus funds his political car ... view full comment

09/24/2009 - 11:05am EDT |

I believe I've said before on this site that the economy is the key determinant of this president's popularity (barring some extraordinary event such as 9-11). Most economists expect a gradual recovery, and it is likely that unemployment will start falling some time in 2010. If, by summer/early fall 2010, unemployment is trending down, and other signs of recovery (productivity, profits, stock prices) abound, Obama will be quite popular. The stimulus, much of which is just starting to be implemented, will deservedly get some credit.

A health care bill, once passed, will probably not hurt his popularity. Whatever passes will be unlikely to fit conservatives' fantasy of "gubmint takeover of eve ... view full comment

09/24/2009 - 11:10am EDT |

One more comment: predictions about Democratic losses in Congress may turn out to be correct, but I am skeptical about anything more than the loss of a few seats. One reason is cautious optimism about the economy. The other is that when voters get a close look at some of the actual people the GOP nominates, they may find them too repulsive to merit serious consideration.

09/24/2009 - 3:42pm EDT |

Yeah, well, you know what? The economy isn't going to be "fixed" any time soon. And

one problem is that the better some things get, the quicker people forget how close

we came to disaster and the more they complain about cost, Federal take-overs, etc.

But there are a few things the President might do to enhance his fading image:

1. Stop trying to appear on television every day of the week.

2. Stop trying to do everything himself, or to make it appear he's doing everything

himself.

3. Hire some people who are competent to assume responsibility for major

initiatives and programs. Let's see, now there's Hillary and...? There are some

real nobodies ... view full comment

09/24/2009 - 4:56pm EDT |

Interesting mlottman: I find 1 and 2 baffling. The conventional wisdom had been that Obama was not doing enough himself and wasn't out there enough. (I agreed. He was letting the health care debate get away from him.) Now, having given a well-received nationally televised speech and several interviews, he's absurdly accused of being "over-exposed." Ridiculous -- a totally made-up controversy concocted by bored TV people and partisan hacks. With respect to 3, I don't know what buffoons you have in mind. It appears to me that this cabinet is uniquely stocked with knowledge and expertise. The adminsitration's economic people strike me as very good. Sure, you could call Geithner and Go ... view full comment

09/24/2009 - 4:59pm EDT |

p.s. The urge to tell the White House to "just do it" neglects the extent to which it is but one branch of government. You have to deal with the fact that the resposne to such entreaties, if they're not carefully calibrated and orchestrated, will be, "Uh, no."

09/25/2009 - 11:22am EDT |

Everyone might want to look at today's Times, which reports Obama's approval rating at 56% (higher than Reagan's at this point, and much higher than Clinton's). Also, many more trust him over Republicans on health care and the economy, and Democrats in Congress poll much better than Republicans. Obama's (& Democrats') numbers only look low if you compare them to last spring; I never expected those to last. Once a president and a congress of one party start to DO things that are on their agenda, adherents of the other party start to disapprove. No surprise.

10/06/2009 - 5:29pm EDT |

I wish someone from TNR would respond to (actually, apologize for) jhildner's first comment above.

It's manifestly dishonest to present three charts purporting to show the same thing (correlation between unemployment and presidential approval) even though a consistent scale would show no such thing.

How is that not the very definition of deceit? Because it's easy to figure out? I suppose a bad lie is somehow not a lie.

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