Posted by AzBlueMeanie:
Maybe those pompous assholes at The Economist in London should spend more time reading about American history, they might actually "edify" themselves about the true nature of the American economy. The Boston Globe today lays it out for them with easy to read charts in Economic data show more growth under Democrats:
[D]espite the view held by many that the GOP is the party of economic
prosperity and soaring stock markets, the opposite has historically been
true. Over the past six decades, Republican administrations have
produced median economic growth of 2.6 percent. Democratic
administrations, meanwhile, have produced a median growth rate of 4.2
And for all of Wall Street’s angst about Obama, the market has done
quite well during his administration. Since his inauguration, stocks
have returned about 12.3 percent annually, in line with market
performance under Democratic administrations going back to 1913,
according to S&P Capital IQ, a New York Research firm that compiled
the data. During Republican administrations, stocks have risen a median
5.1 percent annually.
* * *
“The market actually does better under Democrats than Republicans,
not just the S&P 500, but earnings and the economy,’’ said Sam
Stovall, chief equity strategist at S&P Capital IQ.
An even closer parsing of financial data reveals another surprising
fact: Markets have been at their best when there’s a Democratic
president and a Republican Congress. Historically, that combination has
turned out 15 percent average annual returns, compared with 5 percent
returns with a Republican president and Democrat-controlled Congress.
Why is that? James Swanson, chief investment strategist at MFS
Investment Management in Boston, said: “One of the theories is that
under Democratic presidents – though not always – there tends to be
more federal stimulus. That tends to be good for business, despite what
the Republicans say.”
* * *
Romney has argued that tax cuts, not government spending, are best
for fueling economic growth. Under President George W. Bush, who
implemented a number of tax cuts, corporate earnings grew at a median
14.2 percent annually from 2001 to 2008. Under Obama, they have risen
51.8 percent, but again in part due to how much they fell during the
global financial meltdown. [The Bush Great Recession]
Stocks rose 3.3 percent a year under Bush, according to S&P, about a quarter of their returns under Obama.
According to Ned Davis Research, stocks do best whenever an incumbent
president has won, regardless of political party. And no matter who
wins, markets like the end of the uncertainty that the run-ups to
"If you want to live like a Republican, vote Democrat." – President Harry S. Truman.