In 1994, Republicans won a sweeping victory that cost Democrats control of the House and Senate for the first time in 40 years. Republicans took an eye-popping 54 seats, leading many to conclude that this was a permanent political realignment.

Two years later, Bill Clinton won reelection with 379 electoral college votes to Bob Dole’s 159.

A loss, however painful, is not the end of the world.

The Democrats will do themselves some good if this loss causes them to reconsider their boutique views on immigration, public safety, trans athletes and other matters, but the thumping rightward shift in the electorate between 2020 and 2024 suggests to me that this election really came down (mostly) to inflation, with a side of immigration, rather than an embrace of Trump or Trumpism.

Most voters decide based upon their own financial condition. This year, 68% of voters rated the economy as “not so good” or “poor.” Yes, the other economic indicators were great, but 75% said inflation had inflicted moderate or severe hardship on them. Compared with Biden in 2020, Harris lost ground with nearly every demographic — urban, suburban, rural, you name it.

It’s impossible to gauge how big a part racism and sexism played in Harris’ performance; few will admit such motivations. Harris performed a bit worse with Hispanic women than Biden did. Was that closet sexism? Doubtful. Nor does it seem plausible that so many young women who voted for Biden switched to Trump out of misogyny. Only 26% of voters were satisfied (19%) or enthusiastic (7%) about how things are going in the country, whereas 43% were dissatisfied and 29% were angry. This underscores the importance of people’s personal financial condition. Most voters neither understand nor particularly care about the rule of law or foreign policy (beyond war and peace).

Much will change before the next election — and yes, there will be more elections. The winning party nearly always overreads its mandate and goes too far, prompting a backlash at the polls. The president’s party typically loses seats in off-year elections, so expect a rebuke in 2026.

But Democrats cannot just wait for the election cycle to solve their problems. There are a number of lessons they should take to heart from this year’s results: 1) the abortion issue has run its course as a motivator in national elections; 2) Hispanic voters cannot be taken for granted as part of the Democratic coalition; 3) woke postures like taxpayer-funded sex change operations for incarcerated immigrants are toxic; and 4) big federal spending programs don’t deliver immediate political dividends.

Joe Biden should have understood that passing big bills like the Infrastructure Investment and Jobs Act and the Inflation Reduction Act would not be noticed by voters in time for 2024. He was vice president when the Affordable Care Act passed and witnessed that not only was Obama not rewarded for it, but Democrats lost the House in 2010. Only much later, after it had been fully implemented and people began to enjoy the benefits (and Republicans failed to come up with an alternative), did the program become popular. Both the IRA and the infrastructure bill, ironically, contain lavish spending for rural and Trump-friendly parts of the country that will begin to come online just in time for Trump to take credit for them. The legislation may or may not have been good policy, but it’s important for Democrats to recognize that passing big bills doesn’t translate into votes — at least not right away.

The Democratic Party has suffered a setback, not a wipeout. The country remains closely divided. Democrats still hold nearly half the seats in the Senate and (depending on the races still outstanding) nearly half of the House. Twenty-three states have Democratic governors. Democratic officeholders need to gird their loins for the avalanche of lies, scandals, outrages and betrayals that a second Trump term is sure to deliver. They must prepare to educate voters about the consequences of Trump’s tariffs (which are taxes), deportations, tax cuts, vaccine misinformation and whatever other insane policies emanate from MAGA Washington.