By the State Policy Network
Although it’s only been a couple of months since the 2024 Presidential Election, there have already been volumes of analysis on the outcome. President Trump won more Black voters than any Republican candidate in half a century. It’s also true that Democrats lost significant ground among Hispanics and gained a benefit from their focus on attracting young men to their side.
In the era of microtargeted campaigns, those gains are all important and slowly and steadily contributed to the final outcome. However, there is one broader factor that went in Trump’s favor that is hard to ignore — the economy is not where people want it to be and they believed Democrats were doing more harm than good.
Recent polling from State Policy Network’s State Voices poll shows that nearly half of voters believe the economy and cost of living is the most important issue for the new Administration to address as it takes control in January. Additionally, there is little partisan disagreement on this with Independents and Democrats being slightly more likely to cite the economy as the top priority.
Republicans are almost equally concerned about immigration, but that concern is not shared by others. Healthcare is a higher priority for Democrats but still pales in comparison to their economic concerns. Other issues like poverty, education, foreign policy, and energy may be important to voters, but do not come close to being the most pressing issue.
The administration and national policy groups will have to work hard to balance concerns about the economy and immigration, on which the nation is divided. However, state-based policy groups have the luxury of knowing exactly what voters need them to focus on. Achievements in other policy areas aren’t unwelcome, but if state governments aren’t addressing the economy, they will become the new focus of voters’ anger.
Many state legislatures have gotten the message. SPN’s 2024 Legislative Session Tax Summary found that eight states passed tax reform that lowered the burden on state taxpayers. Tax reform was equally popular in blue states as in red. For example, Hawaii passed the biggest income tax in the state’s history which is estimated to save taxpayers $5 billion by 2031. In Alabama, the legislature agreed to cap annual property assessments and taxes.
Policy-oriented organizations and state governments must show how every policy they are working on has a clear, fast, positive impact on the economy.
If there is not a prioritization on policies that move the economy in the right direction, voters will turn their anger on those in power come 2026 and be open to a different approach to government than the one which was eagerly accepted in 2024.