Core Viewpoint - The recent special elections in the U.S. indicate a significant victory for the Democratic Party, suggesting a shift in political dynamics and strategies, particularly in response to rising living costs and the impact of Trump's presidency [3][4][6]. Group 1: Election Outcomes - The Democratic Party achieved key victories in Virginia, New Jersey, and Pennsylvania, winning all state-level positions in Virginia and securing significant wins in New Jersey [3]. - In California, Governor Gavin Newsom's proposal to change the redistricting process is expected to secure up to five additional congressional seats for the Democratic Party [3]. - The elections are seen as a reflection of public sentiment towards Trump's administration, with many voters expressing dissatisfaction with his performance [10]. Group 2: Key Issues - "Cost of living" emerged as a central campaign issue for Democratic candidates, with several candidates successfully leveraging this topic to gain voter support [6]. - In New Jersey, Democratic candidate Mikie Sherrill won by a 13-point margin, promising to freeze public utility rates and criticizing Trump's unfulfilled promises regarding affordable living [6]. - A Yale University estimate indicates that the average effective tax rate for U.S. consumers is at its highest since 1934, which is projected to negatively impact the labor market and purchasing power [7]. Group 3: Republican Challenges - The Republican Party is facing challenges in the wake of these elections, with analysts suggesting that the party's failure to address rising living costs contributed to their poor performance [6][8]. - Trump's absence from the ballot is cited as a factor in the Republican losses, with concerns about how to convert his support into votes for other candidates [10].

Group 1 - The core issue of "cost of living" has become a primary focus for the Democratic Party in the recent elections [1][4] - The Democratic Party achieved significant victories in key positions across multiple states, including Virginia and New Jersey, indicating a potential shift in voter sentiment [1][6] - In California, Governor Gavin Newsom's proposal to change the redistricting process is expected to secure up to five additional congressional seats for the Democratic Party [1][4] Group 2 - The polarization of American politics is evolving into a long-term trend, influenced by populist sentiments rather than solely presidential factors [2] - Democratic candidates have effectively utilized the "cost of living" issue to gain electoral advantages, as seen in New Jersey where a candidate won by a 13-point margin [4][5] - The overall average effective tax rate for American consumers has reached 17.9%, the highest since 1934, impacting purchasing power and potentially increasing unemployment rates [5][6] Group 3 - The Republican Party is facing challenges in the midterm elections, with voter dissatisfaction towards Trump contributing to their losses in traditionally Democratic strongholds [6] - Trump's absence from the ballot is cited as a factor in the Republican Party's electoral defeats, highlighting the difficulty in converting his support into votes for other candidates [6]

Core Viewpoint - Elon Musk has announced the formation of a new political party called the "American Party," aiming to challenge the existing two-party system in the U.S. This initiative is seen as a response to the perceived waste and corruption within the current political framework [1][3]. Group 1: Political Context - Musk's announcement comes amid increasing political polarization in the U.S., which is expected to lead to long-term instability [3]. - Musk has previously been a significant supporter of Trump, contributing $277 million to his campaign and forming a controversial "Department of Government Efficiency" aimed at reducing federal spending [3][4]. - The relationship between Musk and Trump has soured, particularly after Musk criticized Trump's "Big and Beautiful" plan, which is projected to increase national debt by $4.1 trillion by 2034 [3][4]. Group 2: Formation of the American Party - Musk hinted at forming a new party due to the debt burden imposed by the "Big and Beautiful" plan, stating it is time for a party that genuinely cares for the people [4]. - On July 4, Musk conducted a poll on social media regarding the establishment of the "American Party," which garnered over 1.2 million votes, with 65.4% in favor [4][6]. - Although Musk has not released a complete party platform, he confirmed key policy positions, including debt reduction, responsible spending, and support for AI and technology [6]. Group 3: Challenges Ahead - The U.S. electoral system, characterized by a "winner-takes-all" approach, poses significant challenges for third-party candidates, making it difficult for them to gain traction [7][8]. - New parties face stringent requirements to appear on ballots, including collecting a substantial number of signatures, which can be daunting [8]. - Financial backing is crucial for establishing a new party, and despite Musk's wealth, previous attempts to influence elections have not always been successful, indicating that money alone may not suffice [9].