- Support NDN
Report: In A New Global Age, Democrats Have Been Far Better for the US Economy, Deficits and Incomes
Overview – This report looks at the economic performance of the two American political parties when in the White House since the end of the Cold War. You can find the full report below, as an attachment.
We use 1989 as a starting point for comparison because when it comes to the American and global economies, the collapse of Communism and the non-aligned movement ushered in a new, truly global economic era, one very different from the one that came before. It is thus fair to see how the two parties have adapted to the enormous changes this new era has offered, and whether their policies have helped America prosper or struggle as we and the world changed.
As you will see from the following analysis, the contrast between the performance of the Democrats and Republicans in this new economic era is stark: 2 GOP Presidencies brought recessions, job loss, higher annual deficits, and struggle for workers; the 2 Democratic Presidencies brought recovery and growth, job and income gains, and lower annual deficits.
Based on these findings it is fair to assert that over the past generation the Democratic Party has been far more effective at crafting effective responses to a new economic era than the Republican Party. This case is bolstered, of course, when recalling the GOP’s spirited predictions of economic calamity when opposing both the 1993 Clinton economic plan and budget and the 2009/2010 Obama stimulus and “job-killing” Affordable Care Act.
The Republicans have gotten it wrong now in four consecutive Presidencies.
While it will not be the subject of this short report, our findings raise questions about whether the characterizations of the US economy as one not producing income and wage gains either over 40 years or over the past 15 years are accurate. It would appear that a more accurate description of the US economy in recent years is that with smart policies, Americans can prosper even in a more challenging and competitive global age.
Key Findings From The Report:
Job Growth: Over the Clinton and Obama Presidencies, more than 30m new net jobs were created. In contrast, during the two Bush Presidencies, approximately 3.5m jobs were created.
GDP Growth: Both Democratic Presidents saw the GDP rate rise during their Presidencies. The first President Bush saw GDP hold steady during his tenure. The second President Bush saw GDP decline.
Unemployment Rate: Both Democratic presidents saw more than a 3% point decrease in the unemployment rate during their terms. The Bushes saw increases in the unemployment rate by more than 2% and 3% points respectively.
Income: Both Bush Presidencies saw Americans experience decline in their median income, while during the Presidencies of Presidents Obama and Clinton Americans experienced gains. The newly reported 2015 increase in median income of almost $3,000 is the largest ever recorded since statistics began being kept in 1967.
Deficits: Both Democratic presidents saw dramatic improvements in the annual deficit during their tenures, with Clinton turning large structural deficits into annual surpluses and Obama cutting the annual deficit he inherited by one half. Both Bushes saw increases in the annual deficit on their watches, with the second President Bush seeing a more than ten-fold increase in the annual deficit during his presidency, one of the greatest explosions of debt in US history.
Public Opinion About the US Economy: Survey after survey finds Americans believing that things are far better, and improving. According to one new report, the President’s job approval on the economy stands at its highest mark since 2009. A new report from Gallup finds fully 80% of Americans are satisfied with their current standard of living.
Healthcare: The uninsured rate has plummeted, while the growth of health care costs – a significant driver of the US budget deficit – has slowed. Slower cost growth and healthier Americans are good for the American economy, businesses and the nation as a whole.
Energy: President Obama’s “all of the above” approach has a rousing success for the nation, increasing domestic production, lowering energy costs for American businesses, lessening our dependence on foreign sources of energy while giving the US a leg up on the new energy technologies of the future.
Again, you can find the full report, below, complete with lots of charts and graphs. Enjoy.