Want a Better Economy? History Says Vote Democrat!

The common viewpoint is that Republicans
are good for business, which is good for the economy. Republican
policies – and the more Adam Smith, invisible hand, limited regulation, lassaiz faire
the better – are expected to create a robust, healthy, growing
economy. Meanwhile, the common view of Democrat policies is that they
too heavily favor regulation and higher taxes which are economy killers.

Well, for those who feel this way it may be time to review
the last 80 years of economic history, Bob Deitrick and Lew Godlfarb
have done it in a great, easy to read book; “https://www.bullsbearsandtheballotbox.com/” (available at www.amazon.com/Bulls-Bears-Ballot-Box-Performance/dp/1599322)

Their heavily researched, and footnoted, text brings forth some serious
inconsistency between the common viewpoint of America’s dominant
parties, and the reality of how America has performed since the start of
the Great Depression.


“Reason and facts are sacrificed to opinion and myth.
Demonstrable falsehoods are circulated and recycled as fact. Narrow
minded opinion refuses to be subjected to thought and analysis. Too many
now subject events to a prefabricated set of interpretations, usually
provided by a biased media source. The myth is more comfortable than the
often difficult search for truth.”

Senator Daniel Patrick en.wikiquote.org/wiki/Daniel_Patrick_Moynihan

So even though we may hold very strong opinions about parties and
politics, it is worthwhile to look at historical facts. This book’s
authors are to be commended for spending several years, and many
thousands of student research assistant man-days, sorting out economic
performance from the common viewpoint – and the broad theories upon
which much policy has been based. Their compendium of economic facts is
the most illuminating document on economic performance during different
administrations, and policies, than anything previously published.
Startling Results

The authors looked at a range of economic metrics including
inflation, unemployment, corporate profit growth, stock market
performance, household income growth, economy (GDP) growth, months in
recession and others. To their surprise (I had the opportunity to
interview Mr. Goldfarb) they discovered that laissez faire policies had
far less benefits than expected, and in fact produced almost universal
negative economic outcomes for the nation!

From this book loaded with statistical fact tidbits and
comparative charts, here are just a few that caused me to realize that
my long-term love affair with Milton Friedman‘s writing and recommended policies in “www.amazon.com/Free-Choose-Statement-Milton-Friedman/dp/0156” were grounded in a theory I long admired, but that simply have proven to be myths when applied!
Personal disposable income has grown nearly 6 times more under Democratic presidentsGross Domestic Product (GDP) has grown 7 times more under Democratic presidentsCorporate profits have grown over 16% more per year under Democratic presidents (they actually declined under Republicans by an average of 4.53%/year)Average annual compound return on the stock market has been 18 times
greater under Democratic presidents (If you invested $100k for 40 years
of Republican administrations you had $126k at the end, if you invested
$100k for 40 years of Democrat administrations you had $3.9M at the
end)Republican presidents added 2.5 times more to the national debt than Democratic presidentsThe two times the economy steered into the ditch (Great Depression and Great Recession) were during Republican, laissez faire administrations
The “how and why” of these results is explained in the
book. Not the least of which revolves around the velocity of money and
how that changes as wealth moves between different economic classes.

Adam Hartung

Forbes magazine