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Why then did they decide not to hold a primary this year when they had two challenging candidates demanding one?
It could be a lot of reasons but one is maybe to project party cohesion and avoid damaging the likely winner in the sitting president. They misjudged Biden as a candidate but when they were making these decisions we don't know what information they had so it could have been the best decision to re-elect the incumbent.
In 1980 there was a challenge to the incumbent. How did that work out?
Some people find it convenient and comforting to dismiss things that don't fit with their world view in that way.
I happen to believe that the primaries in 2016 and 2020 were skewed by the DNC to avoid a Sanders victory. But let's say for argument's sake that they weren't. Why then did they decide not to hold a primary this year when they had two challenging candidates demanding one?
Don't say it was because they had a sitting president, because the immediate precedent was 1980 when they did have a primary.