Read The Times Australia

Daily Bulletin

Vital Signs: how to time a bombshell like Trump's tax returns

  • Written by: Richard Holden, Professor of Economics, UNSW

It’s unlikely The New York Times’ publication of Donald Trump’s tax records just before the first presidential candidates’ debate was a coincidence.

This looks like a classic example of what political scientists and commentators call an “October Surprise” – a news story deliberately timed to influence the US presidential election.

Read more: The first US presidential debate was pure chaos. Here's what our experts thought

Much is at stake – the presidency, as well the entire House of Representatives and one-third of the Senate. What is in the minds of voters before they vote is crucial. This gives interested parties great incentive to strategically time the release of information they might have been holding on to for some time.

A well-timed “bombshell” can sway the outcome. But what is the best timing? The first Tuesday in November is still a long way off. Why not wait?

Remember what happened last election

Remember 2016, when both Trump and rival Hillary Clinton faced last-minute scandals.

Trump had his “Access Hollywood tape”, featuring him talking crudely about women. The Washington Post published the tape on October 7, two days before his second debate with Clinton. Given the recording was from 2005, it is hard to conclude the timing of the Post’s publication wasn’t strategic – if not by the newspaper then by the source of the material.

But this October Surprise arguably proved far less damaging than the bombshell that hit Clinton just 11 days before the election, when FBI director James Comey announced the bureau was reopening its investigation into Clinton’s use of a private email server while US Secretary of State.

The FBI had previously investigated and deemed Clinton and her team extremely careless in not using secure government emails to handle classified information. But it recommended no charges. The case was reopened when more emails, sent by Clinton aide Huma Abedin on the laptop of her husband Anthony Weiner, were found. Making the story even juicier was that the FBI found the emails while investigating Weiner for sending sexually explicit messages to a 15-year-old girl.

Anthony Weiner leaves court on May 19 201. Anthony Weiner leaves court in New York on May 19 2017 after pleading guilty to sexting with a 15-year-old girl. Andrew Gombert

While there is no suggestion Comey’s announcement was a deliberate October Surprise, its timing certainly didn’t help Clinton. Nothing came of the reopened case. Had Comey made the announcement a few weeks earlier, the election might have gone to Clinton.

Read more: Why Weiner is Wonderful

Credibility versus scrutiny

The superficial lesson from 2016 might appear to be that the closer to the election you can drop a bombshell, the better.

Indeed analysis of political scandals since the late 1970s show more occur with as as an election get closer.

Vital Signs: how to time a bombshell like Trump's tax returns Gabriele Gratton, Richard Holden and Anton Kolotolin, 'When to Drop a Bombshell', Review of Economic Studies, 85(4), 2018: 2139-2172. But too many scandals bunched too close to an election is likely to blunt their impact. Voters might rationally assume scandals are more likely to be fake the closer they erupt to election day. They have good reason to be sceptical. It is also rational for anyone wanting to influence the outcome with fake news to deny voters the time to distinguish between fact and fiction. So when is the best time to drop a bombshell for maximum impact? My analysis with colleagues Gabriele Gratton and Anton Kolotilin (in the Review of Economic Studies) shows fake scandals are more likely closer to elections. This includes “Billygate” claims in October 1980 that President Jimmy Carter’s brother Billy was a Libyan agent of influence, and “Filegate” claims in 1996 the Clinton White House had improperly acquired access to FBI files on political opponents. Vital Signs: how to time a bombshell like Trump's tax returns Distribution of real and fake scandal claims concerning US presidents and candidates. Gratton, Holden and Kolotilin (2017), 'When to Drop a Bombshell',, CC BY-NC-ND So there is a strategic trade-off between credibility and scrutiny. On the one hand, dropping the bombshell earlier is more credible, in that it signals that its sender has nothing to hide. On the other hand, it exposes the bombshell to scrutiny for a longer period of time — possibly revealing that the bombshell is a fake. Time adds credibility Vital Signs: how to time a bombshell like Trump's tax returns The New York Times reveals Donald Trump’s tax information on September 27 2020. The New York Times What, then, to make of the New York Times’ bombshell on September 27, two days before Trump’s first debate with Joe Biden, that: Donald J. Trump paid [US]$750 in federal income taxes the year he won the presidency. In his first year in the White House, he paid another [US]$750. He had paid no income taxes at all in 10 of the previous 15 years — largely because he reported losing much more money than he made. Only the Times knows when it first could have run this story. But it has released its story far enough before election day that there is time for a good deal of scrutiny. Given the nature of the story, the newspaper’s claims are likely to be proven true or false quickly. The lead time is reason to have confidence in the story’s accuracy. Adding to the story’s credibility is what economists call a high “prior belief” about Trump being someone who lies and cheats. Read more: From Washington to Trump, all presidents have told lies (but only some have told them for the right reasons) We can probably count on more than a few more bombshells about Trump or Biden as November 3 draws closer. But the basic strategic considerations highlighted by our model suggests the closer a bombshell drops to election day, the greater the reason to question its credibility.

Authors: Richard Holden, Professor of Economics, UNSW

Read more https://theconversation.com/vital-signs-how-to-time-a-bombshell-like-trumps-tax-returns-147141

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

GRC Consulting and Cyber Security Consulting for Businesses

Businesses face risks such as ransomware attacks, data breaches, violations of regulatory standards ...

How to Set a Budget Before Bidding at Auction

Placing a bid at an online art auction is an exciting way to discover rare paintings, home content...

Does a Modern James Bond Exist?

Image Credit: MysteryShot What the Movies Get Right About Private Investigators There are a few mov...

How Australian Businesses Can Effectively Manage Tax Audits and Disputes

Managing a small business in Australia is inherently challenging, but recent shifts in regulatory ...

From Coastal Calm to Classic Comfort: The Right Carpet for Every Style of Home

Carpet is often chosen near the end of a room makeover, after the walls, furniture, and lighting h...

How to Add a Heart to a Photo in Seconds

Visual storytelling has rapidly evolved in the digital age, transforming how we share our daily expe...

Why Small-Denomination Physical Gold is Becoming the Ultimate Defensive Asset

In a landscape of lingering macroeconomic uncertainty and rising domestic living costs, everyday i...

Why Your Feet Spread During Running and What That Means for Shoe Fit

The trainers felt brilliant in the shop. You walked around, bounced on your toes, checked the mirror...

How to Vet and Hire the Right Property Expert in the Australian Market

Navigating the Australian real estate market has become a highly strategic exercise. Recent nation...