Will Obama Beat the Fundamentals? Will Romney? By How Much?

Make your predictions here. Incumbency helps Obama. The soft economy hurts him. These effects can be measured: Ray Fair has done such an exercise. By the summer of 2013, the final GDP figures will be in and we’ll know how well a generic incumbent would do under such circumstances. As of July 2012 preliminary estimates of the economy suggest that Obama would get 49.5% of the popular vote. If he does better than the final estimate, we can say something about the relative quality of the two campaigns, candidates and the popularity of their respective policies. Of course that’s a pretty big collection of factors.

As of tonight Nate Silver at 538 predicts that Obama will win 51.1% of the popular vote. Subtracting, we see that Obama currently beats the fundamentals by 1.6 percentage points. That’s pretty close to how he did against McCain/Palin in 2008 - 1.5 percentage points.

Allowing for some reversion to the mean, I’ll give Obama 1.1 points above the fundamentals. That’s respectable, but hardly spectacular given the weakness of his opponents. It doesn’t come close to the 3.4 point trouncing of Nixon over McGovern or GHW Bush over Dukkakis. Clinton’s adjusted score against Dole was 4.3 points, which set new records. Of course, the Romney campaign could also completely unravel, judging from the behavior of the Republican establishment. Ok, make it 1.4 points.

Here’s the data. The 3rd column gives the conventional spread, while the last column adjusts for the economy.



year	Winner	Dem vs Repub	Dem vs Model
1916	Wilson		1.7	1.9
1920	Harding		-13.9	-3.0
1924	Coolidge	-8.2	-0.3
1928	Hoover		-8.8	-1.7
1932	FDR		9.2	-2.1
1936	FDR		12.5	-1.5
1940	FDR		5	-0.8
1944	FDR		3.8	1.5
1948	Truman		2.4	1.4
1952	Eisenhower	-5.4	-0.6
1956	Eisenhower	-7.8	-1.4
1960	Kennedy		0.1	1.0
1964	Johnson		11.3	0.1
1968	Nixon		-0.4	-0.5
1972	Nixon		-11.8	-3.4
1976	Carter		1.1	0.6
1980	Reagan		-5.3	-1.0
1984	Reagan		-9.2	2.9
1988	GHWBush		-3.9	-3.4
1992	Clinton		3.5	4.3
1996	Clinton		4.7	1.8
2000	GWBush		0.3	0.6
2004	GWBush		-1.2	3.4
2008	Obama		3.4	1.5

Mean Absolute: 		5.62	1.70
Median Absolute:	4.85	1.50
Standard Deviation:	7.07	2.08


Obama beat McCain/Palin by a fairly typical margin.

The model weights election year GDP growth very strongly. But maybe the level of unemployment will matter more. If that’s the case, it would favor Romney. Also, Super-pac money and voter suppression, whatever their effects, are not part of the historic record and would also tend to favor Romney. Nate Silver tends to be sanguine about the effects of voter suppression though- they are measurable but not enormous. Mitt’s a strong debater though: he could narrow the gap.