Every election cycle, candidates and their donors and SuperPacs throw billions of dollars around on campaigning. How much does this effect the economy? Is there a marked difference of economic activity during election years vs non-election years?
It’s a boon to radio and TV, which drink up ad money like a vampire does blood, and will somewhat haphazardly affect local hotels and restaurants as campaign staffs and the press corps who follow them around travel from city to city. Overall, I expect it’s a very tiny blip that us hardly noticeable.
nitpick I assume you mean “affect” not “effect” though how it effects the result is an extremely important question as well.
Even if campaigning expense has little direct effect on the economy, I suspect that spending is changed in election years. Those up for reelection might well push for some project dear to their constituents’ hearts, or push to lower taxes, raise benefits, etc.
George Will has observed that America spends less on its off-year elections than it does on Halloween candy, while spending in presidential years is comparable to what we spend on chips.
Yes, I work with/around a very large cable company with presence in many cities. The financial projections have a variable for election year, it has a very marked effect on rates and availability of ad inventory.
The US spent 6 billion on federal political campaigns in 2012. GDP that year was 16 trillion dollars. That is about .03% of the total economy. That does not include government money but just candidates expenditures.
True, but it’s highly focused in particular states. That’s one of the reasons Iowa and New Hampshire fight so hard to keep their caucus and primary at the head of the queue.
Overall, the US GDP is 53,000 billion. Spending on the election will be maybe 5 billion.
It’s not outside of rounding error.