“It’s the economy, stupid!” This famous mantra, coined by the political strategist James Carville, helped Bill Clinton unseat President George H.W. Bush in 1992 - and now it explains another election. The economy played a critical role in the 2024 presidential race, creating the conditions not only for Donald Trump to trounce Kamala Harris and for the Republicans to gain control of the Senate and the House of Representatives, but possibly also for a counter-elite to usher in a new power structure.

The election’s outcome reflected two seemingly opposing views of the economy, both of which are correct. The in...