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scott
08-23-2005, 06:22 PM
From the pages of Red Striped Shirt (http://redstripedshirt.blogspot.com/)

A Series of Unadulterated Facts. Part 1: Are Republicans Bad for the Economy?

In the coming series of blog postings, I will be providing some statistics from some analysis that I have conducted in regards to the relationship between politics and economics. These two fields of study are generally regarded as inseparable, although the amount of training a politician or economist receives in the other field may be limited. I, for one, have a graduate degree in economics but am only qualified for the designation of arm chair political analyst. My formal training in politics is limited to a couple of required undergraduate classes in which I admit to not paying very much attention in. Although I like to consider them objective, my political leanings are in fact based solely on my sometimes uninformed and subjective opinions, although those opinions may be formed by objective processes.

Nevertheless, politics and economics are deemed codependent. As economists, we often take into consideration any implications that political action may have on economic decision making. As economics can sometimes be a rather cold and ruthless thing, this isn’t altogether bad. Pure economics could indicate it’s a good idea to turn people into crude oil (click here), but it is politicians who have the ability to step in and overrule economic rationality with plain old human sense. At the same time, we hope that our politicians make decisions with good economics in mind. We would want our politicians making sound economic decisions, especially given the immense control they have over the domestic and global economy. While it may seem like a good political idea to implement import tariffs on steel, it really isn’t a good economic decision and the cost born in terms of lost (warning: economic lingo forthcoming) social welfare must be weighed against the marginal welfare gained by domestic steel producers.

Because of the apparent relationship between economics and politics, I decided to examine some of the relationships on a fairly superficial level, hoping for clues as to where further (and more rigorous) research would be beneficial. In the first of an unspecified number of parts, I will provide some statistics that go against conventional thinking – that Republicans are better for the economy.

Remember, in this part and all subsequent ones, that correlation is not the same as causation and the statistics I will provide are correlations, and do not imply any causation what so ever. I will not provide any of my analysis or opinion until the last part in the series – hoping everyone will draw their own conclusions until then (knowing that 75% of the people who read this will have the propensity to agree with whatever fits their personal political affiliation, and dismiss that which doesn’t). Enjoy.

For this, and all statistics provided in this series, I examined the time period of January 1947 to December of 2004. That is 58 years of data, a fairly decent sized sample. I chose 1947 because 1) that is when I have data for all the series I wish to look at and 2) it is around the start of the “post war” era.

In those 58 years, the average GDP growth rate was 3.38 percent, pretty healthy. Under a Republican President, however, the average annual growth rate drops to 2.85 percent, compared to 4.04 percent under a Democrat President. The numbers are a little better when the Republican President is part of the majority party: 2.99 percent, where as the Democrat President’s numbers drop to 3.59 percent. If annual GDP growth is a big concern of yours, however, you had better not give the Republican President both arms of congress… when the Republicans have the Presidency, the House, and the Senate, average annual GDP growth drops to 2.20 percent. On the other hand, you would be best off giving the Democrats control of the government – their number jumps to 4.36 percent.

That’s all for now, since I spent so much time explaining what my intent is early on. I’d just like to point out that this isn’t going to become a “why Republicans are bad” thing, so all you Democrats can drop any excitement you had over having something to hold over the heads of your political adversaries. In the up coming parts, there is some data that doesn’t point positively for the Democrats. And to the Republicans, please save any venom if you want to leave a comment. If you have any theories on the CAUSATION to these CORRELATIONS, I invite you to leave them – they will make good discussion.

Clandestino
08-23-2005, 06:24 PM
this recession started during clinton and we came out of it during bush years.

scott
08-23-2005, 06:27 PM
this recession started during clinton and we came out of it during bush years.

RIF.

gtownspur
08-23-2005, 06:29 PM
Those years when the democrats did well was when JFk lowered taxes for the rich and poor and when clinton signed the House and Newt's Contract for america. WHen the Democrats did well economically they didnt have populist policies they were more towards the middle. On the other hand jimmy carter.... Well.....

exstatic
08-23-2005, 06:36 PM
this recession started during clinton and we came out of it during bush years.

Out of it? We're out of it? The DOW is exactly the fuck where it was when Shrub took office almost 5 years ago. That's stagnation. Under Clinton, on the other hand, the DOW grew from 3500 to 11000 before it settled around the overly familiar 10000.

As scott said, RIF.

gtownspur
08-23-2005, 06:46 PM
Goodness!! Exstatic i want you to give me proof of how clinton bettered the economy. What proposal did he pass that spurred the market. Enlighten me.

exstatic
08-23-2005, 07:05 PM
He was smart enough not to get us involved in a giant money sucking black hole of a land war in Asia.

smeagol
08-23-2005, 08:40 PM
this recession started during clinton and we came out of it during bush years.
I know you hate Clinton but if he did something well was run the economy. I remember the 90s as a period of robust growth. Wall Street, filled with Republicans, was a fucking party.

MannyIsGod
08-23-2005, 10:42 PM
I'd be interested to see if odd years or even years are better for the economy.

Nbadan
08-24-2005, 12:16 AM
In those 58 years, the average GDP growth rate was 3.38 percent, pretty healthy. Under a Republican President, however, the average annual growth rate drops to 2.85 percent, compared to 4.04 percent under a Democrat President. The numbers are a little better when the Republican President is part of the majority party: 2.99 percent, where as the Democrat President’s numbers drop to 3.59 percent. If annual GDP growth is a big concern of yours, however, you had better not give the Republican President both arms of congress… when the Republicans have the Presidency, the House, and the Senate, average annual GDP growth drops to 2.20 percent. On the other hand, you would be best off giving the Democrats control of the government – their number jumps to 4.36 percent.

Nice stuff Scott. My thoughts are that the willingness for the administration to go into debt probably has a lot to do with the difference in growth rates. In the 70's when Democrats ran both the legislature and Executive branches debt was negligable and growth exploded. However, the adminstrations of Reagan, Bush41, and W added a combined 6 trillion dollars in national debt. Markets get nervous when the government is spending more than it is taking in during periods of economic growth.

SWC Bonfire
08-24-2005, 09:53 AM
^^^I guess Nbadan conveniently forgot Jimmy Carter's administration in the 1970's.

I think that the phenomenon has more to do with a cycle within the American economy, and the voter's perception with what the government should do is tied with their personal well-being.

smeagol
08-24-2005, 10:45 AM
In the 70's when Democrats ran both the legislature and Executive branches debt was negligable and growth exploded.
And inflation was out of control.

Nice biased revision of the 70s.

SWC Bonfire
08-24-2005, 10:49 AM
The influence of politicians and bureaucrats in Washington on the US economy is greatly exaggerated.

Cant_Be_Faded
08-24-2005, 04:12 PM
this recession started during clinton and we came out of it during bush years.


LOL
i guess this is why employment is up and the DOW is up too right

Clandestino
08-24-2005, 04:38 PM
look at the numbers...

Nbadan
08-25-2005, 01:28 AM
And inflation was out of control.

Nice biased revision of the 70s.

That was more of a Fed Chairman Paul Volkner problem than a Carter problem, but as soon as the Fed started dropping intrest rates the U.S. went into a long period of economic expansion. President Carter did not add a significant amount to our national debt.

gtownspur
08-25-2005, 04:28 PM
Out of it? We're out of it? The DOW is exactly the fuck where it was when Shrub took office almost 5 years ago. That's stagnation. Under Clinton, on the other hand, the DOW grew from 3500 to 11000 before it settled around the overly familiar 10000.

As scott said, RIF.


Again your ignorant. the dow dipped below 10000 in the fall of 2000. and the Nasdaq bombed after the Microsoft ruling.

And again you had to use Vietnam to defend your claim that Bitch Clinton did something for the economy. Funny how liberals react when they have swallowed their own skeet.

Look at Vietnam.. Land war in asia... blah blah.

Are you going to blame Vietnam if Roe v Wade gets overturned? :lol

scott
08-25-2005, 11:31 PM
Changes to the Dow Jones Industrial Index are not the same thing as "the economy."

SWC Bonfire
08-26-2005, 10:15 AM
politicans fucking suck
i hate them

Run for county commisioner.

Extra Stout
08-26-2005, 11:48 AM
Out of it? We're out of it? The DOW is exactly the fuck where it was when Shrub took office almost 5 years ago. That's stagnation. Under Clinton, on the other hand, the DOW grew from 3500 to 11000 before it settled around the overly familiar 10000.

As scott said, RIF.You know, usually I look at GDP, GNP, or employment figures as a measure of economic growth, not the stock market.