The Republican Party's Demographic Future

 

Stereotypes are often statistically significant, and that is why the relative and absolute decline of the white population is going to hurt the Republican Party. After the last four years the talk of a permanent Republican majority seems especially ridiculous, but even when the Republicans were in charge their long term prospects have been tentative at best.

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Source: US Census

Of course, politics is more complicated than just white people vote republican and other people vote for democrats. In order to narrow down the results further, I averaged the CNN exit polls from 2008 and 2004 (Counting the Nader voters as Democrats) to get the table below. 

 

 

Democrat

Republican

 

White

42%

57%

African-American

92%

8%

Latino

61%

38%

Asian

59%

40%

Other

61%

36%

 

Using this table and the US Census data, I generated the following projection:

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This projection is obviously a bit off, as Republicans were equal or ahead of democrats in 2000 and 2004.

There are a few factors that bias the analysis towards making democrats appear stronger than they are:

  1. Minority voters are younger and lean more democratic.  Young voters don’t show up in the same numbers as older voters, so an age weighted analysis would show Republicans as better off.
  2. There is some amount of over counting of Hispanic voters, as many of the Hispanic population are illegal aliens and unable to vote.
  3. There is a possibility of over counting of Hispanic voters voting democratic and under estimating the extent to which non-Hispanic white voter’s lean republican because all Hispanic people in the census were assumed to act as if they were Latino. It is very likely that a significant fraction of the Hispanic population told exit polls that they were white instead of Latino.
  4. The Electoral College based system gives Republicans a chance to retain control of the senate and white house via the smaller states with white majorities for far longer than the above chart would suggest.

Even given the above irregularities, it is obvious that demographic trends mean Republicans face an uphill battle. Democrats get the minority votes by supporting entitlement programs that disproportionately benefit minorities. Republicans then imitate the democrats in order to try and get votes, a strategy that is generally ineffective in terms of netting votes and has the effect of permanently expanding the entitlement infrastructure. Brown’s win in Massachusetts may have temporarily halted healthcare reform, but the demographic trend means that victory is only temporary.

The only way demographics are on republican’s side is that the consistent increase in age based entitlement spending from Medicare and Social Security means that a few years down the line the government will not be able to afford any additional entitlement spending without making everyone pay for it.

 

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Filed under  //   demographics   entitlements   politics  

About

I studied Bioengineering at the University of California at San Diego. While there I served as a trustee on the investment committee of the UCSD Student Foundation, a group that manages an endowment to fund scholarships. While in college I applied my interest in finance and economics by working as a summer associate at Clarium Capital Management, working part time my senior year, and joining full time when I graduated in 2006, staying there through August 2010. I am currently working as a portfolio manager at another global macro hedge-fund in the Presidio (And blogging about more directly market related ideas at their restricted blog). I’ve been focusing on quantitative finance, currencies, commodities, the interplay between finance and politics, demography and other long term trends.

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