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2014 Midterm Elections

7/30/2014

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by Greg Casey, president and chief executive officer of BIPAC

Strange things can happen in the 90 days before an election.

The plethora of Washington political pundits have done their best to provide us with an endless stream of assessments of the 2014 elections.  By looking at respective war chests of the party
campaign committees and some of the competitive campaigns, they give the financial advantage to the Democrats and their fundraiser-in-chief.  The same pundits, aware of the second term woes of an incumbent President, analyzed the polling data and constructed a fall narrative which leans Republican.  

Emerging from all this is the common understanding the GOP will hold the majority in the U.S. House of Representatives and add a few seats to their margin.  The GOP will gain anywhere from four to eight seats in the U.S. Senate.  Thus, the big question remains unanswered and as of now, is unanswerable.  

The average voter doesn't focus a lot on the fall elections until after summer vacations are over and the kids are back in school.  That makes pre-labor day polling a trailing edge indicator rather than a reliable predictor.  However, the upcoming Congressional August recess signals the beginning of the real fall campaigns.  

Incumbents come face to face with constituents and insurgent candidates come face to face with incumbents.  It is a revealing test for both.  It is a time when the reality of "out there" sets in and begins to replace the party dogma in shaping fall campaigns.  This is the period of time which has given rise to many transformational election dynamics:  the Contract with America, the Tea Party and the ripples of eventual wave elections.  So what should we be looking for in the next few weeks?  

At some point in the next 60 days, public opinion solidifies on the big issues. Already, two thirds of the voters think the country is on the wrong track. Voters are unhappy with the President's handling of just about every current issue, let alone the chronic drag of Obamacare.  Thus, over the next two months, Democrats are going to discover the President's 42% Real Clear Politics national approval rating is inflated.  In perpetual swing states like Iowa, which is attuned to politics as few others, his approval is already at 40% and falling and it is unlikely to get any better.  Democrats will increasingly be swimming against the tide of an unpopular President and an unlikable Senate Majority Leader.  This is going to change the campaign dynamics.  Watch for desperate candidates with troubling internal polling to begin turning toward more provocative positions.   

Although republicans still have a brand problem, Democrats have an increasing base turnout problem.  Currently 38% of voters have a "favorable" impression of Democrats compared to only 29% who feel favorable towards Republicans.  Neither number is particular good.  However, 76% of republican voters say they are "absolutely certain" to vote in November compared to only 67% of the democrats.  

Although unemployment numbers suggest an economic revival, the GDP shrank nearly 3% in the first quarter and the average household wage is about where it was a decade ago.  For the average voter, the economic revival isn't real and national statistics are unlikely to convince them otherwise.  That is why democrats have turned their monetary advantage toward motivating their base by pushing social issues that may not play well in some of the more competitive Senate races: read war on women and gay marriage playing in Arkansas, Georgia, Alaska, Montana, Louisiana, Iowa, Kentucky and North Carolina.  Their push of the impeachment rumor to motivate their base is unlikely to get much traction unless some clueless republican gives it credence, ala Akin and the war on women, 2012.

Moving down the home stretch, the bigger challenge for Senate candidates may have less to do with all this partisan politics than finding ways to appeal to state electorates looking for honest, genuine, level headed leadership.  GOP candidates have to prove to a skeptical public they are ready to govern wisely by showing less intolerance and more positive vision.  Democrats have to prove they aren't going to provide more of the same by blindly following the President and his agenda.  

In the race for the U.S. Senate in Iowa, GOP candidate Joni Ernst will win because she is genuine Iowa.  Congressman Bruce Braley played politics with his comments about Senator Chuck Grassley.  Senator Mitch McConnell made his election more difficult by telling a job hungry electorate "economic development isn't my job."  If Senator Mark Udall loses in Colorado, it will be because Cory Gardner stayed on a positive economic message while Senator Udall pandered to the social issues of the left.  In deep blue Oregon, Dr. Monica Wheby may sneak up on Senator Jeff Merkley because she has a compelling story and his is more about politics. So on it goes.  

From a realistic standpoint, the barn door is closed on Democrat hopes of retaking the U.S. House.  In the race for control of the US Senate, the GOP has three pickups in the barn with eight tossups in the corral, six of which are Democrat held.  There are another three possible surprises, none of which would accrue to the benefit of Democrats.  All of these latter races will be candidate dependent and in each, signs will soon emerge as to which way they are headed.  We will keep you posted.
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AP:  "U.S. employers post most jobs in 7 years..."

7/8/2014

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Another strong sign that private sector job creators are showing increased confidence in our recovering economy...
U.S. employers advertised more jobs in May than in any month in the past seven years, a sign that this year's strong hiring trend is likely to continue.

More Americans also quit their jobs, a good sign because it usually occurs when workers find new and higher-paying jobs. It also opens up more positions for those out of work.

Employers posted 4.64 million jobs, a 3.8 percent increase from April's total of 4.46 million, the Labor Department said Tuesday.
Learn more in today's Associated Press story, "U.S. employers post most jobs in 7 years in May; more Americans also quit in sign of confidence."
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U.S. Adds 288k Jobs and Unemployment Drops to 6.1%

7/3/2014

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The June jobs report from the BLS is out.  Following a positive ADP report, we see an increase of 288,000 non-farm private sector jobs added to the economy.

The Wall Street Journal also reported that:
May's gain was revised up to 224,000 from 217,000, while April's improvement was upgraded to 304,000 from 282,000. That was the strongest gain since January 2012.
The revised reports from May and April, plus June's official U.S. Department of Labor stats continue to show promise that we are rebounding.  As I write this blog post, CNN also reported that the Dow surpassed the psychological 17,000 today. 

Although job gains are still mostly coming from the traditional low-paying sectors:  retail (+40k) and leisure and hospitality (+39k), economists and analysts continue to show increased confidence due to the skilled laborer increases - such as manufacturing (+16k) and construction (+6k).

To learn more, read WSJ's story from today by Jonathan House and Ben Leubsdorf.
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USA Today - "Job openings soar to highest since 2007"

6/17/2014

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Good news from the U.S. Department of Labor, via today's USA Today story, "Job Openings Soar to Highest Since 2007" by Doug Carroll:
Tuesday's report comes from Labor's monthly Job Openings and Labor Turnover Survey, which is closely followed by economists and Federal Reserve policymakers for its insights into labor market trends.

The report shows openings grew in every region of the country in April. The sharpest improvement was in the Midwest, where openings increased 13% from March and topped a seasonally adjusted 1 million for the first time since August 2001.

The South led in total openings, as it always does, with 1.6 million seasonally adjusted. In the West, openings were about 1 million and in the Northeast, 771,000.
To learn more about this report, please visit http://www.bls.gov/jlt/.
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The Fight for (Exports and) Jobs

6/12/2014

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Exports supported 11.3 million U.S. jobs in 2013.  This is an increase of 1.6 million since 2009. Learn about the fight for jobs, supported by exports, from the CNH Industrial Digital Trade Toolbox and CNH Industrial’s Joseph Samora.
The CNH Industrial Digital Trade Toolbox includes a tool so you can make your voice heard in the fight for jobs that are supported by exports.  Visit www.cnhindustrialtrade.com and click on the “Write to your Congressperson” link to help support the re-authorization of the U.S. Export-Import Bank (Ex-Im) before its authorization expires on September 30.  In 2013, Ex-Im helped to finance $37 billion in U.S. export sales, supporting approximately 205,00-0 export-related American jobs.
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Forbes - "Jobs Report: U.S. Economy Added 217K Jobs In May, Unemployment Remains Unchanged At 6.3%"

6/6/2014

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The U.S. Department of Labor's Bureau of Labor Statistics (BLS) released the May Jobs report this morning, saying:
Total nonfarm payroll employment rose by 217,000 in May, and the unemployment rate was unchanged at 6.3 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in professional and business services, health care and social assistance, food services and drinking places, and transportation and warehousing.
To learn more, read the Forbes ongoing story, "Jobs Report: U.S. Economy Added 217K Jobs In May, Unemployment Remains Unchanged At 6.3%" by Maggie McGrath.
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2014 Most Vulnerable Governors

9/3/2013

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Stakes in the States Series

There are 36 states with governor’s races in 2014. The current party breakdown for governorships is 30 Republican and 20 Democratic. There are currently six open seats in AR, AZ, NE, MD, MA and TX meaning there are 30 governors running for re-election. Despite Republicans having a ten seat advantage, several current Republican governors won election in the Tea Party wave of 2010 and nine Republican governors are up in states that Obama won in 2012. As such, Republican governors are now running for re-election in states that are far more moderate than they’ve governed, leaving them more vulnerable than their Democratic counterparts. Below is a list of the top four most vulnerable Republicans and top four most vulnerable Democrats running for re-election in 2014. We’ve provided an overview as to why they are at risk and listed the most recent race ratings from several top political analysts as well as those from BIPAC.

Top Four Vulnerable Republicans

Gov. Rick Snyder (MI)
BIPAC: Toss Up
Rothenberg: Pure Toss Up
Cook: Toss Up Sabato’s Crystal Ball: Toss Up; changed from Leans Republican
538/NYT Apr. 8: Net Job Approval -8

Snyder’s approval ratings dropped drastically after signing Michigan’s “right-to-work” law last December. While it has improved in the past few months, it has not fully recovered. His recent decisions regarding Detroit’s bankruptcy have helped him with approval ratings, but his support for expanding Medicaid is now costing him with Republicans. This is a state that Obama won in 2008 and 2012.

Gov. Paul LePage (ME) BIPAC: Toss Up/Lean D Rothenberg: Toss Up/Tilt Democrat Cook: Toss Up, has this highlighted as a potential retirement Sabato’s Crystal Ball: Leans Dem/Indy; changed from Toss Up on 8/8/13 538/NYT Apr. 8: Net Job Approval -12   LePage has faced attacks from both sides of the aisle during his time in office, most recently with his own party over Maine’s budget, supporting a government shutdown over the legislature’s bipartisan agreement. The potential three-way race shaping up could help him again if he runs in 2014, just as it did in 2010.

Gov. Rick Scott (FL)
BIPAC: Toss Up
Rothenberg: Pure Toss Up
Cook: Toss Up, has this highlighted as a potential retirement
Sabato’s Crystal Ball: Toss Up
538/NYT Apr. 8: Net Job Approval -20

Rick Scott, one of the more vulnerable governors in the country, could see a primary challenge from his own party. His approval ratings have been improving a bit recently, with Florida’s economy regaining some strength and his reversal to support Medicaid expansion in Florida (though he was unable to win legislative support for it).

Gov. Tom Corbett (PA)
BIPAC: Toss Up/Lean D
Rothenberg: Toss Up/Tilt Democrat
Cook: Toss Up
Sabato’s Crystal Ball: Leans Democratic; changed from Toss Up
538/NYT Apr. 8: Net Job Approval -14

Corbett has a lot working against him for 2014. He has yet to get his “big three” campaign promises passed, including transportation funding, liquor privatization and public employee pension reform. Pennsylvania’s unemployment rate is also often above that of the national average, and Corbett has been highly criticized for his handling of the Penn State scandal when he was attorney general.

Top Four Vulnerable Democrats

Gov. Dan Malloy (CT)
BIPAC: Lean D
Rothenberg: Lean Democrat
Cook: Lean D
Sabato’s Crystal Ball: Toss Up; changed from Leans Democratic on 6/20/13
538/NYT Apr. 8: Net Job Approval +6

Malloy faced a large drop in approval ratings when he signed the largest tax hike in Connecticut’s history, during his first year as governor. Connecticut has also been ranked the worst state for economic growth the past two years. Malloy has gained some popularity of late, due to his support of gun control legislation in the state. This may not however, be enough to offset the lack of support for his economic policies.

Gov. Lincoln Chafee (RI)
BIPAC: Lean D
Rothenberg: Democrat Favored
Cook: Toss Up
Sabato’s Crystal Ball: Toss Up; changed from Likely Democratic on 6/20/13
538/NYT Apr. 8: Net Job Approval -40

Chafee’s biggest problem for re-election is Rhode Island’s economy. For July 2013, it was ranked third in the nation, with an unemployment rate of 8.9 and was rated the second worst state for business by CNBC in 2013. Chafee has recently switched parties, from Independent to Democrat, which could help his chances at winning re-election.

Gov. Pat Quinn (IL) 
BIPAC: Lean D
Rothenberg: Lean Democrat
Cook: Toss Up, has this highlighted as a potential retirement
Sabato’s Crystal Ball: Leans Democratic; changed from Likely Democratic on 6/20/13
538/NYT Apr. 8: Net Job Approval -24

Quinn’s approval ratings are so low it is very possible he will face a primary challenger, which is where he will be most vulnerable in the deep blue state. Like several of the governors on this list, Quinn’s unpopularity has a lot to do with the economy. Illinois has faced major budget problems under Quinn, including a $100 billion pension crisis; the worst faced by any US state. Quinn has halted payments for state lawmakers until they pass pension reform and is now being sued by members of his own party for the pay freeze.

Gov. Hickenlooper (CO)
BIPAC: Likely D
Rothenberg: Democrat Favored
Cook: Solid D
Sabato’s Crystal Ball: Leans Democratic; changed from Safe Democratic on 6/20/13
538/NYT Apr. 8: Net Job Approval +33

Hickenlooper could be potentially vulnerable for two main noneconomic reasons- his recent stances on the death penalty and gun control legislation. A Quinnipiac survey found that his handling on both issues, granting temporary reprieve to a man on death row, and supporting gun control legislation, went against public opinion in Colorado. Whether or not these will be enough to make Hickenlooper a one term governor has yet to be seen.

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Stakes in the States: Recall Elections

8/12/2013

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What is a recall election? It is a procedure that allows citizens to remove and replace an elected official before the end of their term. Recalls can be used to rid the office of a corrupt or incompetent leader, for partisan politics, or removing officials for a policy position. It is estimated that a majority, three-fourths, of recall elections are at city council or school board level, though there have been increasing instances of recalls at the state level. Nineteen states (AK, AZ, CA, CO, GA, ID, IL, KS, LA, MI, MN, MT, NV, NJ, ND, OR, RI, WA and WI) and the District of Columbia currently allow recalls of state officials. In the past three years, several states have seen state elected officials face recalls, including WI, AZ, MI and currently, CO.

State Level Recalls since 2010 (according to National Conference of State Legislatures)

  • 2011 Wisconsin: Nine state senators faced recall elections regarding the budget bill proposed by Governor Walker (R). Sens. Robert Cowles (R), Alberta Darling (R), Dave Hansen (D), Sheila Harsdorf (R), Jim Holperin (D), Luther Olsen (R) and Robert Wirch (D) survived recall attempts. Senators Randy Hopper (R) and Dan Kapanke (R) were recalled.
  • 2011 Arizona: Senate President Russell Pearce (R) was recalled over his sponsorship of AZ’s immigration law.
  • 2011 Michigan: State Representative Paul Scott (R) was recalled for supporting Gov. Snyder’s budget and angering teachers unions.
  • 2012 Wisconsin: Gov. Walker and four state senators faced recalls over collective bargaining issues. Gov. Scott Walker, Senate Majority Leader Scott Fitzgerald (R) and Senator Terry Moulton (R) survived recall attempts. Senator Van Wanggaard (R) was recalled. Senator Pam Galloway (R) resigned before her recall election, a recall was still held for her seat.
  • 2013 Colorado: State Senate President John Morse (D) and Senator Angela Giron (D) face recall elections on September 10 for their support of gun control legislation.
In the first ever recall elections of state lawmakers in Colorado, two Democratic senators in Colorado are facing recalls due to their vote on stricter gun control measures, State Senate President John Morse of El Paso County and Senator Angela Giron of Pueblo County. After the Secretary of State deemed there were enough signatures for a recall, Gov. John Hickenlooper (D) set the recall election date for September 10, 2013.

The gun control bills causing such uproar in CO, passed in the 2013 legislative session by the Democratically-controlled CO state legislature, were the first such bills passed in over ten years. This is a hot topic issue in a state that is well known for the Columbine High School and Aurora shootings, but is also known for its bipartisan passion of hunting and sport shooting.

A group behind the recall, the Basic Freedom Defense Fund (501 (c)(4) non-profit), was set up in February in response to the passed gun legislation. The founding members say the main issue is about legislators not listening to their constituents. Originally, four Democrats were targeted to be recalled, including Sen. Evie Hudak (D) of Westminster and Rep. Mike McLachlan (D) of Durango but only the recall attempts for Sens. Morse and Giron gained enough signatures. Former Colorado Springs City Councilman Bernie Herpin (R) is challenging Morse and former police officer Georgia Rivera (R) of Pueblo is challenging Giron.

Money has been pouring into the elections, with Giron and Morse raising nearly a quarter million dollars, and receiving thousands of dollars from Colorado liberal groups. Recall supporters have been sending their funds to the Basic Freedom Defense, and the NRA has helped with mailers and phone banks. According to El Paso and Pueblo county clerks, the elections will cost somewhere between $150,000 and $200,000.

Even if the recall attempts are successful, Democrats will still hold the majority in the Senate, 18-17. However, supporters of the recall still hope this will send messages to legislators in CO and across the country.

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State Unemployment Rates

6/5/2013

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The economy is always a major headline in elections, especially unemployment rates. When looking at the unemployment numbers for the states that have governors up for reelection in 2014, 14 states currently have unemployment rates higher than the national average of 7.5%. How significantly will these numbers affect the elections? While it is true that several of the nation’s most unpopular governors are on this list, including Chafee (I-RI), Quinn (D-IL) and Corbett (R-PA), other governors with high unemployment rates are relatively popular. Nevada has one of the highest unemployment rates right now with 9.6% unemployment, yet Gov. Sandoval (R) has positive approval ratings. While unemployment rates may not predict the outcomes of races, it is certainly a factor to keep in mind going into the 2014 elections.
Unemployment
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Exit Polling Is Going To Look Very Different In Some States This Year

11/6/2012

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A strong indication of who is going to win the Presidential election comes from exit polling results. A conglomerate of news outlets, ABC, CBS, CNN, Fox News Channel, NBC and the AP, are responsible for creating preliminary results for viewers to get an early indication of who is going to win a certain state. This year, however, cutbacks have been put in place regarding how extensive the polling will be in certain states; in 19 states, AK, AR, DE, GA, HI, ID, KY, LA, NE, ND, OK, RI, SC, SD, TN, TX, UT, WV and WY, the barest form of polling will occur, as opposed to full reports being conducted in all states in election cycles past.

In previous election years, full reports were conducted in each state, with a series of questions posed to the people being interviewed. Among the questions were: for whom they were voting, which age group they belonged to, and which issues were most critical in leading up to a decision. Such reports will still be conducted in 31 states. In the other 19 states however, the exit polls have been stripped to a singular question of who the interviewed person is voting for. These polls are happening exclusively in non-battleground states where no surprises are expected to occur. One of the main disadvantages of this system is that extensive post-race analysis will not be available for all of the states.

The reasoning for such a system comes down to the conglomerate of news outlets wanting to dedicate their resources to the most critical states, thereby giving the public concise analysis in states that dictated the outcome of the election. Early voting has also proved to be a stumbling block for pollsters, who now are forced to conduct cell phone interviews, as opposed to in-person interviews, which has increased costs greatly.

While the citizens of every state will not be awarded with in-depth analysis of their state’s races, it serves a bigger purpose in giving the entire nation a better idea of where the Presidential races were won and lost.
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