Explosive New Research Confirms That The Economy Grows More Under Democratic Presidents

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New research by two Harvard economists proves that Democratic presidents do a better job of growing the economy than Republicans.

Jared Bernstein summed up the findings of economists Alan Blinder and Mark Watson:

The two looked at key macroeconomic variables averaged over 64 years (16 four-year terms), from Harry Truman to Barack Obama. Mr. Blinder and Mr. Watson focus mostly on the 1.8 percent annual difference in real G.D.P. growth. That is, over the full study, real G.D.P. growth averaged 3.33 percent per year. But under Democratic presidents the economy grew 4.35 percent and under Republicans 2.54 percent.

Under Democratic presidents, the economy also spent fewer quarters in recession; added more jobs and more hours worked; and posted larger declines in unemployment and higher corporate profits than under their Republican counterparts. Stock market returns were a lot higher under Democrats as well, but because equity markets are so volatile, that difference is not statistically significant. (By the way, since March 2009, the S.&P. stock index is up 160 percent).

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Republicans have long claimed that Democrats inherit a better economy when they take office, but the Blinder/Watson paper reveals that the opposite is true. Democrats leave the economy in good shape, and Republicans drive it into a recession, “The figure also shows that Democrats inherit growth rates averaging 0.6% from the final year of the previous Republican president, while Republicans inherit growth rates averaging 3.8% from outgoing Democrats. Thus, the election of a Democrat seems to turn things around on a dime while the election of a new Republican seems to signal a recession.”

The economists could answer the question of why Democratic presidents grow the economy better than Republicans through an examination of economic factors such as monetary policy, outside shocks to the economy, wars, etc., while political ideology doesn’t control the cycle of the economy, policy choices can help or hinder economic growth.

Data has consistently shown that tax cuts for the wealthy don’t grow the economy. In fact, tax cuts can hinder economic growth. Unlike poor and middle-class people, the wealthy don’t put the benefits that they receive back into the economy. When a person in the middle class gets a tax cut, they spend the money to pay bills or buy needed goods and services. The wealthy and corporations tend to not spend money that is a gained from tax cuts.

The Great Recession has demonstrated that the economy grows less when the government cuts taxes for those at the top while slashing spending. The tax-cutting strategies by Republican governors in states like Kansas and Wisconsin have caused those states to lag behind the rest of the nation in job creation. Meanwhile, Democratic Gov. Jerry Brown did the exact opposite in California. Voters raised taxes for everyone, and the state now has the third strongest economy in the country.

One of the main reasons why the recovery from the current recession has been so slow is because Republicans have refused to raise taxes and increase spending. The fact that the economy is beginning to take off after taxes were raised on the wealthy suggests that Republicans are holding the economy back by clinging to an economic ideology that has been unsuccessful for decades.

Political choices do make a difference. If growing the economy was as easy as just electing Democrats, Republicans would never win another election. It is more complicated than just winning elections, but it is clear that Democratic presidents have more success with growing the economy because they aren’t welded to one ideology.

It is now a proven fact that Democratic presidents are better at growing the economy. The Republican snake oil and pipe dream promises that tax cuts for the wealthy will lead to prosperity for all has once again been debunked by facts and data.

18 Replies to “Explosive New Research Confirms That The Economy Grows More Under Democratic Presidents”

  1. Just like republicans are strong for defense and our Veterans just another lie that the village keep feeding to the gullible.

    Reagan never raised taxes even though he raised them about 11 times. The deficit shrunk under Reagan but a quick Google search would show they grew.

    Social Security is broke even though they have a surplus. The surge in Iraq worked, Barney Franks caused the housing crisis, WMDS God damn the list is endless on the utter incompetence of bagger rule boggles the mind.

    have you no sense? … plenty of it he answered but at times we get tired of using it … don marquis

  2. Nice to have the statistics to back up what is pretty much common sense already. This has been the pattern for the last century – Republicans f*** up the economy, and Democrats fix it. Clinton (the first one) handed Bush(the second one) a $350B annual surplus, Bush handed the money to the 1%, and by the time he left we had a $1.4T deficit. When Clinton took office the unemployment rate was 7.1% and at the end of his last fiscal year it was 5.3%. Bush took that 5.3% and when his last FY ended it was at 10.1%. President Obama has already gotten it back to 6.2%, and without Republican obstructionism it would be below 5% by now. Like I said – the Republicans screw it up and then the Democrats set it right.

    And yet there are people who still vote for Republicans. SMH.

  3. Now if only we could get the people who vote for the Republican clowns to look at reality, we might get somewhere.

    The problem is just like the other day, I was having a “discussion” with my hard right brother and the more I pointed out the error of his thoughts with facts, the angrier he became.

    He finally just started shouting over me and calling me a baby killer, that’s how our “discussions” always end. My other siblings have the same RW beliefs, but they don’t try and sway my thinking like my brother does.

    At least it’ll be a couple of months or so before he’ll try it again, in the meantime, he has disowned me for the umpteenth time. Oh well.

    Just a little sidebar here; I was mostly raised by my atheist father, and they were raised from a very early age by my devout evangelical stepfather. Go figure.

  4. If they say those are lies, we say that the proof is in the pudding and right now, Kansas would be the guinea pig for the case against conservative ideology and the idea that it works.

  5. Since I have to deal with several RWNJ’s in family and elsewhere, I begin my responses with either “Reality is…” or “Scripture says….” (And, generally, that helps me get a word in edgewise.)

  6. Sure took a long time for these educated experts to come to this conclusion. It’s been a well known fact, in older Democratic households, that when Republican’s are in the white house lay-off’s are in the future.

  7. GOOD WORK Judy.. hit them with what they think, they know best.. but don’t follow. God’s law, they all ignore.

  8. Regardless where they come from I see you didn’t comment on the data. But you’re right they are from Princeton.

  9. @djchefron-your vision is spot on. I didn’t and am not questioning the data or the conclusions. Why would you assume I take issue with either? I merely wanted to point out the error in the event the author wanted to correct it. Articles retain more credibility when the don’t present a factual error in the opening sentence.

  10. The question here is why are we comparing the administrations, when it is Congress who does the taxing and spending. Isn’t the economy more of a function of what Congress does than what the president does?

  11. In response to your question, I will tell you that it is becoming more difficult hanging on to my home. I have struggled since the depression to hang in there with my limited income. I knew it would come to the final point of being forced to walk away from my home. Dam, I hate to lose!
    I am a symbol of all the mania that tp nuts sling at people except I am white. I have asked my family if they realize how much it hurts when they spew their hateful crap. I am always told “we don’t mean you.” Hah, what a crock!
    Every year for 4 years the insurance on my home has increased because Brownback opened the door for yearly increases. For 4 years I have seen my property value manipulated to the point that I would be lucky to sell for the price I paid 14 years ago. I have seen neighborhood schools decimated to the point the State Supreme Court stepped in to order proper funding for the schools. I have seen community services diminished.
    I want out of here but, sure as hell, I am stuc…

  12. The article does indicate “One of the main reasons why the recovery from the current recession has been so slow is because Republicans have refused to raise taxes and increase spending.” However, it is the President who sets the agenda and uses the ‘bully pulpit’ to rally support for his agenda, which is virtually impossible with the current know-nothing, do-nothing (except for repealing the Affordable Health Care Act 50x and voting to sue POTUS) HoR.

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