The economy is a Democrat: Why recent history shows the value of a progressive president

[DonViejo]

When Dems control the White House, the middle class wins. And under Republicans? Not so much...

SEAN MCELWEE

At the core of the debate between liberals and conservatives is a dispute over whose policies are better for economic growth, and particularly for the middle class. A new study by Bryan Dettrey and Harvey D. Palmer suggests one way to test this question — by examining how economic growth differs under Republican and Democratic presidencies. Their finding might not be too surprising: Under Republicans, growth boosts the stock market, while under Democrats, it reduces unemployment.

The two academics examine how economic growth is distributed over time. Their data are expansive, covering the 60-year period from January 1951 to December 2010. They find that once economic growth increases above 1 percent a year — and it does so over most of the period they studied — “the average level of unemployment is significantly higher under Republican administrations.”



As the above charts (from their paper) show, with either a one- or two-year lag, Democrats reduce unemployment dramatically during periods of GDP growth compared to Republicans. Some of this effect has to do with inflation rates (as a I note below), but the authors note another key difference: They argue that Republican policies (for instance, massive tax cuts for the rich and cuts to capital gains) incentivize corporations to use money to compensate CEOs or distribute to shareholders, rather than invest in workers and jobs.

more
http://www.salon.com/2015/03/28/the_economy_is_a_democrat_why_recent_history_shows_the_value_of_a_progressive_president/

[Wellstone ruled]

1. This proves the value of

Keynesian Economic Theory and it's implementation by Democratic Presidents. The Chicago School of Economics or the Friedman Theory of Economics just regresses our Nation to the failed two class model used in Feudal Europe in the Eighteenth and Nineteenth Century. These graphs tell the truth as to what works and what is totally failure.