Democrats preside over stronger economies

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Addie
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Democrats preside over stronger economies

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Post by Addie »

Newsweek
Democrats preside over stronger economies

Are you worried that the economy grew by only 1.9% in the recent quarter? That's a pretty weak performance. But it would seem downright dismal if you believed President Donald Trump's assertion during the 2016 campaign that 1.9% growth during one of former President Barack Obama’s quarters signaled an economy "in deep trouble."

Economists are now forecasting 1.8% gross domestic product growth in the fourth quarter. Things are most definitely slowing down. Clearly, Trump will not whip the economy into the 4% annual growth he bragged about during the campaign. Never mind 6%. And despite the economy's so-so October performance, Trump ended the month tweeting, "The Greatest Economy in American History!" But we're used to that.

Trump-believers might also swallow the baloney that Democrats are all socialists eager to smite capitalism. Real capitalists closely monitoring their stock portfolios would disagree.

If you’re a real capitalist, chances are good that you miss Obama. During Obama's eight years, the S&P 500 rose almost 176%.

Researchers at the University of Chicago's business school concluded that historically, stock investments do better under Democratic presidents than Republican presidents — a lot better.

boots
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Re: Democrats preside over stronger economies

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Post by boots »

I know there's an easily-findable youtube clip where Donald Trump says the same thing a few years back.

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Addie
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Re: Democrats preside over stronger economies

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Post by Addie »

Newsweek
Stock Market Under Trump Posts Record Highs, But Markets Under Obama Performed Far Better ...

Trump often compares current economic conditions to those of the Obama era, frequently claiming that he turned around unfavorable circumstances that brewed under his predecessor.

But a closer look at the data indicates that a Trump-Obama comparison may not land in the current president's favor, at least according to his preferred indicator: the stock market.

Because of the recession that predated Obama's tenure, absolute numbers do not lend themselves to straight comparison. Trump's closing numbers are higher in part because Obama presided over a Bush-era crash. But relative growth can better illuminate the market's performance.

On Obama's first inauguration day in 2009, the S&P 500 closed at 805.22. Over the next three years, the S&P index increased by 57 percent to 1,265.33, according to an analysis of stock market data. During the same time period under Trump, the index grew from 2,271.31 on Inauguration Day 2017 to 3,224.01 three years later, an increase of 42 percent.

While certain indicators during the Trump presidency have undoubtedly bested that of his predecessor—for example, the unemployment rate's 50-year low and wage growth's decade peak—comparisons of stock market performance, a sense of personal pride for the president, show that in this one respect, the Obama years were more effective.

TexasFilly
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Re: Democrats preside over stronger economies

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Post by TexasFilly »

Even if people who don't make tons of money have 401(k)s, it seems to be a fallacy that they've "made money." Of course, these are unrealized gains: you don't make a profit until you sell the stock. This might be a good thing for the Democrats to pound on with effective messaging. If the Dems had anyone doing messaging.
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RVInit
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Re: Democrats preside over stronger economies

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Post by RVInit »

TexasFilly wrote:
Fri Dec 27, 2019 8:57 pm
Even if people who don't make tons of money have 401(k)s, it seems to be a fallacy that they've "made money." Of course, these are unrealized gains: you don't make a profit until you sell the stock. This might be a good thing for the Democrats to pound on with effective messaging. If the Dems had anyone doing messaging.
Also, it doesn't matter what your stash is worth today if retirement is still 30 years away. Lots of people had 401Ks worth a mint at the beginning of Bush the Younger and worth zilch at the end of his 2nd term. Too bad they didn't retire and move it to a safe place when it was worth so much. That's a message that is based on what actually happened to a hell of a lot of people.
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