Election Day in the United States is more than a political milestone; it also delivers an economic jolt. The 2020 presidential election, held during a pandemic, amplified these impacts with unprecedented voter turnout, record campaign spending, and unique operational adjustments in retail, hospitality, and transportation. Analyzing the economic impact of Election Day reveals insights into how this democratic event ripples through various sectors.
The 2020 election marked the highest voter turnout in over a century, with nearly 67% of eligible Americans casting ballots, according to the U.S. Census Bureau. This influx contributed to heightened consumer activity on Election Day itself, often compared to a national holiday due to the civic atmosphere and the unofficial “Election Day economy.” Businesses, particularly in food and beverage, noticed a spike as campaigns and parties offered incentives like free coffee or discounted meals to voters. Additionally, the surge in mail-in voting led to a boost in the shipping industry, with millions of ballots processed by the U.S. Postal Service and private carriers.
In terms of spending, the 2020 election was the most expensive in American history. OpenSecrets.org estimates that total spending reached around $14 billion, double the amount spent in 2016. The effects rippled out to local economies, especially in swing states where the competition was fiercest. Campaigns flooded media channels with advertisements, benefiting local broadcasters who saw significant revenue spikes. Advertising agencies, polling companies, and security firms also profited, as did digital platforms that hosted targeted online ads.
Retail, however, felt a pinch due to the contentious and polarized political climate. With concerns over civil unrest following the election, many businesses, especially in major cities, boarded up and reduced operating hours, anticipating possible disruptions. Some lost sales on Election Day itself, but those in online retail noted increased activity as people opted to stay home and shop. Major retailers, including Walmart, took preemptive steps, pulling firearms and ammunition from store shelves temporarily, highlighting the unique risks to consumer goods and retail spaces during politically charged times.
Beyond these sectors, the pandemic further intensified the economic impact of the election by increasing demand for protective equipment and hand sanitizers at polling stations. States spent millions to ensure voters could cast ballots safely, a cost that municipalities had to absorb.
The economic impact of Election Day in the United States is broad and multifaceted. From spending surges on advertisements to the protective measures at polling stations, the 2020 election influenced both traditional and digital economies. While the election happens only once every four years, the financial ramifications continue to underscore the importance of this singular day. As the next election approaches, economists and analysts will be watching closely to assess whether this trend of high spending and logistical adjustments will become a lasting hallmark of American democracy.