30 August 2003

Do Republicans Manage the Economy Better than Democrats?

Poll results repeatedly show that Americans believe Republicans are better stewards when it comes to economic issues. Maybe it's the outcome from the preponderance of corporate media and conservative financial journals - because, the numbers simply don't bear out this truth at all. In fact, both the stock market and GDP have performed better under Democratic administrations. Ditto for House or Senate majorities.

What if the great depression era is excluded and years are tallied for the presidential party submitting the yearly budget? Still, the Democrats outshine the Republicans.

The economy grew in 19 of the 20 years in which Democratic Presidents submitted a budget and in 16 of the 20 years in which Republican Presidents submitted a budget.

For the twenty years for which Republican presidents submitted budgets, the average rate of GDP growth was 2.94%.

For the twenty years in which Democratic presidents submitted budgets, the average rate of GDP growth was 3.92%.

Well, many will argue, justifiably, that there is a lag time before economic and political policy can take root. So what if we looked at a two, three, four or five year lag? And let's examine inflation and unemployment too.

3 Yrs

4 Yrs

5 Yrs

GDP Growth
Democrats
Republicans

3.56%
3.35%

3.78%
3.16%

3.71%
3.21%

Unemployment
Democrats
Republicans

5.06%
6.16%

5.04%
6.18%

5.01%
6.21%

Inflation
Democrats
Republicans

3.33%
4.36%

3.07%
4.60%

3.20%
4.48%

No matter what time lag you choose, Democrats post higher GDP growth, lower unemployment, and lower inflation.



Comments

What were the numbers when Carter was president?
Democrats took a free ride on the accomplishments of Reagan.