CEO Daily: Trump versus the map, and the economy

The early handicapping of the coming Donald Trump-Hillary Clinton showdown has focused on the map. For Trump to have a chance of winning in November, he’ll need to hold reliably Republican states and then over-perform across a swath of Rust Belt targets that lately tip Democratic: Michigan, Ohio, Pennsylvania, and Wisconsin. Even then, to get over the top, he’d need to pick up, say, Colorado and Virginia — no small task.

Trump likely can’t get there on his own. Considering the intensity of the opposition to his candidacy among key voting groups, it would help if circumstances outside the campaign broke his way. A significant economic downturn, for example, might convince voters that the country needs a radical break from Obama-era policies. And the more cataclysmic, the better for Trump, assuming such a rupture would fan the flames of discontent already animating his core supporters. But despite Friday’s decidedly middling jobs report, there’s no sign a major disruption is brewing. Instead, the economy looks primed to putter along for the rest of the year with growth between 1.5 and 2.5 percent. Perhaps more importantly, wages have risen 2.5 percent over the last 12 months, suggesting more workers may finally be feeling the recovery they’ve only been hearing about for years.

History nevertheless suggests Clinton faces headwinds in this general election. Since World War II, six non-incumbents have tried to replace a president of the same party. Only George H.W. Bush in 1988 succeeded. All three Democrats who tried — Adlai Stevenson in 1952, Hubert Humphrey in 1968, and Al Gore in 2000 — ran on improving economies, with unemployment rates that had each dropped about 1.5 percent over the previous four years. At least on paper, Clinton is running on a stronger record: The jobless rate has dropped 2.7 percent in Obama’s second term. But a better reason to believe Clinton will prove the exception is her exceptional opponent.

Trump didn’t squeeze any positive coverage out of his historic victory in the Republican primary this week. So maybe he was trying to make his own luck Thursday when he said the U.S. should save money by shorting our creditors and effectively defaulting on our debt. If investors took that threat seriously, he might just precipitate the economic crisis he needs to win. The map and the underlying strength of the recovery predict he’ll have a hard time otherwise.

Top News

• Trump hits back on Paul Ryan

First, Paul Ryan said that he couldn't endorse Donald Trump yet, sparking another round of furious infighting within the GOP. Then, Trump said that Ryan was unfit to be Speaker of the House, stoking the fire further. Sure, word is the two will meet next week, but can this rift be mended?  Politico

• Clinton Wants GOP Bucks

There are a lot of Republicans who want no part of the Trump candidacy, and a lot of them have some serious cash. Hillary Clinton is going after their support, and their money. New York Times

• Here is how Trump wins

If Donald Trump wants to win in November, he is going to have to turn some Rust Belt and Midwestern states for the GOP. Primary exit polls suggest that could very well happen. Fortune

Around the Water Cooler

• Donald Trump could spell doom for John McCain

The presumptive 2016 Republican nominee could be very bad for the 2008 Republican nominee. Trump's comments about Hispanics could put McCain's state of Arizona in play, and that could make McCain's reelection difficult. Rolling Stone

• Lindsay Graham won't be in Cleveland

You can add South Carolina Sen. Lindsay Graham to the list of Republicans who won't be supporting Trump or attending the Republican National Convention.  Washington Post

• Bernie Sanders is still upset

It seems certain that Hillary Clinton is going to win the Democratic nomination, but Bernie Sanders is not giving up. The Vermont Senator is accusing the Democratic National Committee of tilting the convention towards Clinton. Politico