More evidence for ditto heads to deny...
Stock Market Does Better under Democrats than Republicans
While there has been a lot of talk about the economy this year--especially from Republicans--one key aspect has been underreported: the stock market. While Republicans act like they are better for the economy, as measured by the Dow Jones Industrials Average, that is not true. The market was down 2% yesterday, but is nevertheless up 64% since Obama was inaugurated. Let us consider how the DJIA has performed under the last two Democratic and last two Republican Presidents, that is, from Jan. 20, 1989 until today, as shown in this graph.
During the two Bush administrations, the Dow went up 41% and down 26%, respectively. Under Clinton and Obama, it went up 229% and 64%, respectively. These numbers represent annualized growth rates of 9%, 16%, -4%, and 14%, respectively. So measured by the Dow, Obama has not done quite as well as the go-go '90s under Clinton, but he is not far off.
To make these number clearer, suppose Mitt Romney had invested $10,000 in the stock market on the day George H.W. Bush was inaugurated (instead of betting it on something). On Clinton's first day in office imagine Romney sold his stocks, expecting a disaster from the Democrats. He would have had $14,100 in cash. Then when George W. Bush took over, imagine he bought a Dow index fund with his $14,100. When Obama took office, Romney would have had $10,434, a net profit of $434 for 12 years of investment.
Now suppose Barack Obama had sat out the Bush 41 years and put $10,000 into a Dow fund on Jan. 21, 1993. He could have sold it for $32,900 the day George W. Bush got the keys to the White House. If he had invested his $32,900 the day he took office himself, his holdings would be worth $53,950 now, a profit of $43,950 in almost the same 12 year period. While unemployment affects about 8% of the population, more than half of all Americans have an IRA, 401(k), or other retirement fund (or in some cases a pension invested in stocks) and they are a lot better off now than they were 4 years ago. But this fairly obvious economic fact gets surprisingly little attention.