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Mole's Progressive Democrat

The Progressive Democrat Newsletter grew out of the frustration of the 2004 election. Originally intended for New York City progressives, its readership is now national. For anyone who wants to be alerted by email whenever this newsletter is updated (usually weekly), please send your email address and let me know what state you live in (so I can keep track of my readership).

Location: Brooklyn, New York, United States

I am a research biologist in NYC. Married with two kids living in Brooklyn.

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  • Friday, November 19, 2010

    The Economy

    I recently highlighted actual facts and figures showing that in pretty much every possible way, from job growth to keeping the deficit down to stock market performance, the economy does much better under Democrats than Republicans. I want to look a little more closely at why.

    What makes an economy strong? It isn't money circulating among the top 10% which is how Republican trickle down economics (aka "Voodoo Economics") believes it works. Nor is it money pouring into the biggest corporations, again the way Republican policies assume. What makes an economy strong is money circulating among working and middle class Americans and small to medium sized businesses. THOSE areas are the backbone of our economy. Our economy doesn't grow because a CEO can buy another yacht, big business can outsource more jobs, and BP and Exxon/Mobil make massive profits that go to bonuses for their executives. Our economy grows because you and I are buying what we need for our families, local Green Energy projects are being built, and small and medium sized businesses are growing and able to hire another person or two.

    Republicans favor the BIG GUYS. The top 10% get the tax cuts...and Capital Gains cuts...and tax loopholes. You and I can't take advantage of Off Shore Banking. The BIG GUYS can. So they get richer and we get poorer under Republican policies. In essence Republicans are redistributing wealth to the richest Americans. And Republicans favor BIG BUSINESS, the companies that outsource jobs and buy from overseas. This all means money circulates among fewer people and jobs flow overseas. THAT is what Republicans do.

    Democratic policies favor working and middle class Americans and small to medium sized businesses. Democratic policies get money circulating among a much wider ranger of people and businesses. This keeps more money circulating within the United States' economy and favors job growth here in America. Republicans accuse Democrats of wanting to redistribute the wealth, but that is BS. Democrats get money flowing more equitably through our economy while Republicans actively redistribute the wealth to the very richest, following the same failed trickle down policies that they have since Herbert Hoover.

    Here's the proof. Looking at Average Annual Income growth and comparing the average for Republican (in red) and Democratic (in blue) Presidents, under Democrats average annual income grows for ALL AMERICANS. Under Republicans average annual income goes up for the very rich and barely at all for most of us:

    Under Democrats the money is flowing through a much wider range of the economy than under Republicans and THAT means the economy is stronger under Democrats than under Republicans. You and I have more money to buy stuff or save or invest or pay off debt under Democrats. Under Republicans only the very rich can do these things. Under Democrats MORE PEOPLE can spend, save, invest and pay of debt than under Republicans.

    The circulation of more money (for spending, saving, investing, etc) among more people means better stock market returns: Average growth in the stock market under Republicans average (excluding Hoover, to be fair) is 4.3% growth...Democratic Average is 9.6%.

    Note this: the BEST STOCK MARKET GROWTH has been under Clinton and Obama. The WORST stock market declines (excluding Hoover) were under Nixon and the younger Bush. Clinton and Obama have been the best Presidents in modern American history for stock growth.

    What else comes of Democrats getting more money circulating around a larger segment of the American economy rather than Republicans favoring the very rich and companies that outsource? More job growth. There is more real job growth under Democrats than Republicans...without fail!

    Look at that graph. EVERY Democratic President has done better than EVERY Republican President since Hoover in creating jobs. You want job growth, vote Democratic. And job growth means yet MORE money circulating through the American economy.

    More jobs and more money circulating through the economy means a higher GDP under Democrats. Average Growth in GDP: Again Democrats match or beat all Republicans

    You can't argue with these numbers. Better job growth and better growth in GDP and a fairer average annual income growth under ALL Democrats compared with ALL Republicans.

    Then we come to the deficit. Again Republicans repeat the lie over and over that Democrats run up the deficits. Well, the worst deficits in American history were under three names: Reagan and two Bushes.

    Republicans do FAR more deficit spending that Democrats. I think there are three reasons for this. First, because there is better economic growth under Democrats (see all the above graphs) there are more tax revenues. Second, because Republicans give massive tax breaks to the rich, they reduce the money coming in. Third, at the same time Republicans are cutting down the income to the government, they favor massive spending programs like expanding the military, building a fence around the country, expanding surveillance, invading Iraq...all things that cost massive amounts of money. Democrats favor programs like infrastructure, education, alternative energy that not only are cheaper than invading Iraq but actually in the long run can save money and/or create jobs. So Republicans have a weaker economy, cut income and increase outflow. Democrats produce a stronger economy (thus increase tax income), don't give massive tax breaks to the rich and spend money more wisely in ways that better help average Americans.

    The net result is a stronger America under Democrats than Republicans by almost any measure you can think of.

    Look, any one of these things could be coincidence. But ALL of these measures of economic strength doing better under Democrats compared to Republicans over such a long period is really hard to argue with. DEMOCRATS DO BETTER.


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