BBC NewsBorrowing was £17.4bn last month, the second highest October figure since monthly records began in 1993.
Sir Martin Sorrell
There were two clear issues in the 2024 US election: firstly, as James Carville put it, it’s the economy, stupid. Secondly, it was the immigration question, though there were some signs in the exit polls that the future of democracy was also important.
The Democrats got it wrong – and the pollsters did too. But then I think Trump, for the second time out of three, has conducted really tactically interesting campaigns. In 2016 he used a San Antonio agency called Giles-Parscale which was run by a guy Brad Parscale with only about 100 employees. It was the days of Cambridge Analytica and personalised data: they ran an extremely effective campaign in 2016.
In 2024, the Democrats outspent the Republicans very heavily. In 2016 they had new media; in 2024, they had a “new-new” media. They only had a staff of about four people; the Democrats had about 100. It’s ironic that the Democrats are left with a bill for £20 million for three celebrity concerts which they’re unable to pay for: I think Trump has offered to pay off the debt.
I thought Trump would win until the last few days. Then I thought the issue with the comedian Tony Hinchliffe calling Puerto Rico an ‘island of garbage’ in the warm-up at the Madison Square Garden comment – I thought that wouldn’t go down well. I also wondered whether the comments he made about Liz Cheney would have a negative impact on his prospects.
But fundamentally, it doesn’t matter what Trump says. When he once said he could shoot somebody on Fifth Avenue and not lose any votes, he was right. In 2024, he hit the nail on the head over and again and was very disciplined, especially when he repeated the Reagan line: “Are you better off than you were five years ago?”
He was also very disciplined on the advertising. The Democrats used the “new-old” media: Facebook and Instagram and so on.
Nevertheless, it was a surprise that they took the seven swing states, as well as the House and the Senate: it was the scale of the victory more than the victory of itself which came as a mild surprise.
All of this means that Trump is in a very strong position, particularly for the first two years, since there’s usually a reaction in the mid-terms. The stock markets have welcomed the win and Treasury yields have risen slightly and so there are some natural concerns now surrounding inflation. We’ll also see what the impacts of the proposed tariffs are going forwards.
On the Democrat side, I don’t know if it would have made a difference if Biden had pulled out of the race earlier, and if the Democratic Party had had an open convention. I don’t think Tim Walz was a good pick as Vice-President – Pennsylvania governor Josh Shapiro would probably have been better, but perhaps Kamala was worried about the competitive element there. She didn’t want a strong personality.
Going down into the results a little, the Republicans managed to engage with Latinos, with young blacks, and with less college-educated young whites. The other surprise for me was that the Roe v Wade decision and abortion was not as prominent as we expected: women didn’t react as aggressively as we thought they would do.
Of course, Trump’s rallies and speeches were extremely dark. Kamala’s rallies were the opposite, with her smiling a lot – but there was a lack of content. That left a gap for Trump to make some shrewd moves: to take tax off Americans living abroad; and to take corporation tax down from 21 per cent to 15 per cent as well as lowering income tax. All these were far more substantive than anything the Harris campaign said.
I saw a TikTok of a young black woman with a massive apple in her hand. She said to camera: “Do you know how much this apple costs?” It was a massive apple, about the size of a pomegranate. She said: “I thought it was one or two dollars – but it was seven dollars!”
At the end that was the thing which swung it: the economy.
And going forwards? Trump has put into place a Cabinet and advisors who very much represent what he was going to do.
People say he didn’t expect to win in 2016. This time around, it’s not a surprise and he has the four years of experience. He is somewhat controversial, to put it mildly. But he has firm views.
Whatever business said before the election, deep down they wanted Trump because he stands for low tax and low regulation. Overall, Trump is good for business and good for North America.
Sir Martin Sorrell is the chair of S4 Capital.
