~ GDP Growth and Job Growth Stronger under Democratic Presidents ~
WASHINGTON – Representative Carolyn Maloney (D-NY), Ranking Member of the U.S. Congress Joint Economic Committee (JEC), today hailed the findings of a recent paper by Princeton University economists Alan Blinder and Mark Watson showing that the U.S. economy performs better under Democratic than Republican presidents.
Dr. Blinder joined Rep. Maloney and House Minority Whip Steny Hoyer (D-MD) on a telephone press conference today to discuss the paper, which finds that the superior economic performance under Democratic presidents holds “almost regardless of how one measures performance.”
Drs. Blinder and Watson found that since World War II, real (inflation-adjusted) GDP has grown about 1.7 times faster under Democrats than under Republicans. During this same period, nonfarm jobs have grown nearly 2.2 times faster under Democrats.
“Regardless of the exact cause, the record is clear: GDP growth and job growth have been stronger when a Democrat is in the White House,” said Ranking Member Maloney.
“The superiority of the performance of the economy under Democratic presidents versus Republican is pretty much ubiquitous,” Dr. Blinder said. He and Dr. Watson evaluated 25 economic measures, and found that almost all performed better during Democratic administrations. “The two parties are about equal on inflation. On every other thing you can think of, including corporate profits, stock market returns and things like that, the Democratic performance was superior. And in a number of cases, not every case, the gap is stunningly large.”
“The information that Dr. Blinder, my office and the Joint Economic Committee have put together, we believe, makes it very, very clear that there is no dispute,” Rep. Hoyer added. “Americans do better under Democratic presidents economically, and in many other ways, but certainly economically, than they do under Republicans.”
The reasons for the difference between Democrats and Republicans are neither fully understood nor completely the result of policy choices, according to the authors. Many factors are beyond a president’s control, such as demographic trends, the growth of foreign economies, oil prices, productivity growth and Federal Reserve policy.
It is also true that sometimes presidents pursue policies that inadvertently have negative effects on the economy. This was the case under President George W. Bush. As Blinder has previously stated, “the fact that we entered several wars in the gulf area (the latest in 2003) under Republican presidents, thereby driving up oil prices, was not just luck—it was policy, though not economic policy.”
In a statement, JEC member Rep. Alma Adams (D-NC) added, “This study makes it clear, Democratic policies are better for our economy and for the American people. With Democrats in control, we have greater private sector growth, greater job creation and a greater gross domestic product. Americans can rely on Democrats to continue to move our economy forward and to make our country stronger.”
The audio of the press conference can be heard here.
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