On the principle that we’ll remember it if he’s right, and forget it if he’s wrong, Chris Sheil predicts electoral defeat for Bush and Howard in 2004. A loss by Howard is certainly a possibility, particularly if the housing market tanks rapidly, but I think the odds in favour of Bush are strong.
Now that Saddam has been captured, I think Iraq will be, at worst, neutral for Bush. I think a substantial US pullout is on the cards once the June deadline is met. If there are genuine elections and a reasonably stable government by that time, it will be reasonable to claim ex post that the benefits of the invasion exceeded the costs. Even if this isn’t the case, the Republican base and much of the swing vote will be satisfied with shooting Saddam and pulling out.
On the economy, I think there’s probably enough momentum in the recovery to carry Bush through to November even if long-term interest rates rise substantially (as they ought to, in view of the CAD and budget deficits). Again, I see this as a near-neutral issue rather than a big winner for Bush.
The big advantage for Bush is that, given his political position, he doesn’t face a budget constraint. Bush can promise more tax cuts and more military expenditure while matching the Democrats on any domestic expenditure issue that has electoral bite. Of course, this will imply unsustainable budget deficits, but it’s already clear that no-one outside the Democrat camp is going to call him on this. The NYT Op-Ed page may not like the deficit but its news columns are sticking to “he said, she said”. If the Republicans say they have a magic money tree, that will be reported in the headline and any refutation will be buried in the body of the report.
It’s politically impossible for a Democratic candidate to match Bush on this, and even if this weren’t the case it would be most unwise. The adverse consequences of chronic deficits won’t emerge for a few years yet. For Bush that means, in effect, that the problems can be left to his successors. But for a first-term Democrat it would spell disaster. And the worst possible outcome would be for a Democrat to try and outbid Bush, then lose anyway.
If a victory is not to prove worse than a defeat,the Democrats have to run on the complete repeal of the Bush tax cuts (this is Dean’s position and, I think, Gephardt’s also). Unfortunately, I don’t think it will be possible to win on this platform.
While I’m linking to Chris, I’ll note that he picked up the slack while I was off air with this post which was better than what I would have written on the same point.