Tuesday, October 23, 2012

If you want a strong economy vote Democrat. Seems simple enough, right?

Courtesy of Forbes:  

The common viewpoint is that Republicans are good for business, which is good for the economy. Republican policies – and the more Adam Smith, invisible hand, limited regulation, lassaiz faire the better – are expected to create a robust, healthy, growing economy. Meanwhile, the common view of Democrat policies is that they too heavily favor regulation and higher taxes which are economy killers. 


Well, for those who feel this way it may be time to review the last 80 years of economic history, Bob Deitrick and Lew Godlfarb have done it in a great, easy to read book; “Bulls, Bears and the Ballot Box” (available at Amazon.com) Their heavily researched, and footnoted, text brings forth some serious inconsistency between the common viewpoint of America’s dominant parties, and the reality of how America has performed since the start of the Great Depression. 

This book’s authors are to be commended for spending several years, and many thousands of student research assistant man-days, sorting out economic performance from the common viewpoint – and the broad theories upon which much policy has been based. Their compendium of economic facts is the most illuminating document on economic performance during different administrations, and policies, than anything previously published. 

The authors looked at a range of economic metrics including inflation, unemployment, corporate profit growth, stock market performance, household income growth, economy (GDP) growth, months in recession and others. To their surprise (I had the opportunity to interview Mr. Goldfarb) they discovered that laissez faire policies had far less benefits than expected, and in fact produced almost universal negative economic outcomes for the nation!

From this book loaded with statistical fact tidbits and comparative charts, here are just a few that caused me to realize that my long-term love affair with Milton Friedman‘s writing and recommended policies in “Free to Choose” were grounded in a theory I long admired, but that simply have proven to be myths when applied! 
  • Personal disposable income has grown nearly 6 times more under Democratic presidents 
  • Gross Domestic Product (GDP) has grown 7 times more under Democratic presidents 
  • Corporate profits have grown over 16% more per year under Democratic presidents (they actually declined under Republicans by an average of 4.53%/year) 
  • Average annual compound return on the stock market has been 18 times greater under Democratic presidents (If you invested $100k for 40 years of Republican administrations you had $126k at the end, if you invested $100k for 40 years of Democrat administrations you had $3.9M at the end) 
  • Republican presidents added 2.5 times more to the national debt than Democratic presidents 
  • The two times the economy steered into the ditch (Great Depression and Great Recession) were during Republican, laissez faire administrations  

The book is great at looking past today’s economic myths by using long forgotten facts to set the record straight. For example, in explaining President Reagan‘s great economic recovery of the 1980s it is often attributed to the stimulative impact of major tax cuts (ERTA.) But in reality the 1981 tax cuts backfired, leading to massive deficits and a weaker economy with a double dip recession as unemployment soared. So in 1982 Reagan signed (TEFRA) the largest peacetime tax increase in our nation’s history. In his tenure Reagan signed 9 tax bills – 7 of which raised taxes! 

The authors do not come down on the side of any specific economic policies. Rather, they make a strong case that a prosperous economy occurs when a president is adaptable to the needs of the country at that time. Adjusting to the results, rather than staunchly sticking to economic theory. And that economic policy does not stand alone, but must be integrated into the needs of society. 

In other words the Republican's almost religious adherence to the "no tax" agenda preached by corrupt financial evangelist Grover Nordquist is guaranteed to cause incredible economic distress in this country, and ONLY an intelligent approach to raising revenue while trimming government waste will ensure the continued recovery of our troubled financial system.

You know, the exact same approach embraced by our current President.

But then why am I telling you, if you are a regular here you undoubtedly already figured that out for yourself. Didn't you?

So perhaps you can use this article, or perhaps even purchase the book yourself, to help teach that smug GOP loving, trickle down dipshit in the family, what it takes to ensure increased financial stability in this country.


  1. Randall2:26 AM

    Grover Norquist...

    If I were in a debate with any one of the Republicans that have taken the Norquist Oath, I'd hammer them with it.

    Why are Republicans taking an oath to someone who's never been elected to anything?

    Isn't that kind of an end-run around our "sacred" election process?

    We the People have the privilege to vote for our leaders and the creation of our policies.

    Once elected, our leaders must swear an oath to the Constitution of the United States. That's a requirement of the office.

    Isn't it a bit of a perversion of the process to swear an oath to someone who's never been elected to anything?

    1. fromthediagonal6:25 AM

      Of course it is! But then again, it is merely a means to an end of getting elected, because that's where the all-important money is to be had. Those who condemn all government as evil are the worst at corrupting the process.

  2. OT, but jesse you need this link:


    this is the soup-kitchen that paul ryan "just wet and you'll dry them" photo op-ed.

    if we want to help the people who eat here or often go hungry this is a way....

  3. you know, this:


    -badness. please help that place get donations from "real americans" you know, the kind who actually care about "the poors"!!!

    it's looking fark-tastic so far, but spread the word!

  4. Anonymous4:13 AM

    McCain on Morning Joe this morning showed once again he is still pissed he lost. He can't get over it.

    He, as he did with Palin, when asked if she was qualified -- stated that Romney showed in the debate he was qualified as Commander-In-Chief -- he did what he had to do.

    He also in his snide way, made reference that the President is not qualified, even after 4 years. The President was 'bullish' -- not Presidential according to the old man.

    The man is seriously delusional. Anyone who has 'hero' worship of McCain is in that same boat.

  5. WakeUpAmerica4:19 AM

    Fascinating, Gryphen. Thanks for sharing. If people would peruse the GAO site a bit, they wouldn't be shocked by this news.

  6. fromthediagonal4:54 AM

    Like you, Gryphen,I have always known that unbridled laissez faire is encouraging the irresponsible gambling of Wall Street.

    To some extent greedy hoarding is an evolutionary hardwire in the brain. It is, for some species more than others, a necessity of survival. But it also can become malignant, a compulsion that leads to abuses.

    This is why the powerful few all too often exploit the many who cannot compete unless they unite to fight against their oppressors.

    This is why we need laws to regulate the greed of those who believe themselves Masters of the Universe, those who ruthlessly exploit any and all possibilities to hoard more power and influence, those who will hire others to work and fight to their death for the profits of the few.

    Let's not be "trickled down" on any longer!

    Let's get on top of this by voting Straight Democratic Ticket and then force our representatives to legislate the proper restraints, both in the tax code and in the banking/financial sphere.

    Let's work to mitigate the exploitation cycles of Bull and Bear Markets.

    Let's Do It! Vote!

  7. Anonymous6:18 AM


    It has been posted before, that one of Paul Ryan's brothers, Tobin, was a Bain Exec under Romney in 1995 and had other relationships with Romney in MA, that which Tobin has no reference to in his bio as the contracts between Tobin and the state should have raised the issue of ethics for Romney.


    An FYI -- Tobin was also at one time COO at Tomah Products when the CEO was Steve King,'a major player in Wisconsin's Republican Party, last year serving as one of three transition team members for newly-elected RNC chair Reince Priebus'


    Yesterday, through Mother Jones Blog, we found out that Paul Ryan has a brother, Stan Ryan, serves as corporate vice-president of Cargill's agricultural supply-chain businesses based in Shanghai.

    A Romney/Ryan 'China' connection.


    A reminder: Romney's first client at Bain -- MONSANTO. In fact, his Agricultural Advisory Committee is packed full of Monsanto lobbyists and partners.


    Now let's play connect the dots:

    Romney & Tobin Ryan worked together at Bain back in 1995 and have many other associations via other corporate contracts. It makes it difficult for Romney to pretend that he hasn't known Paul Ryan for that long when you connect the political dots of Wisconsin of Paul Ryan - Tobin Ryan/Steve King/Reince Priebus.

    You have Stan Ryan, in Exec position in China - with Cargill, a 'private owned' corp, an "industrial style agriculture" corp who deals in "soybeans" and venturing into 'chickens'.

    Then you have Romeny, surrounded by lobbyists & artners of his first client -- Monsanto -- the genetic modifier of seeds and foods.

    I know you guys could connect the dots better than I have written it. I just thought it's something else we should have knowledge of as the more info we have, we have to put it out there.

  8. Thanks for posting this Gryphen. I just posted it to my Facebook page. I live in Georgia, so many of my friends and family try to say that the political things I like and share are "Just the 'liberal' media and they are lying." I am constantly looking for links to reliable sites to get factual information across to them. Forbes Magazine is hard to dismiss.

    Fox News is certainly not a reliable source, but they do tend to actually look at that link when I post it. This one was interesting. Ben Stein went on Fox and Friends to explain that we do need to raise taxes on the rich. Wonders if he is going to be allowed to leave alive.


  9. Anonymous8:38 AM

    you know what? you can point this out till you're blue in the face ( like your webpage! )but it matters not one iota to those who are stuck in the doctrine. You'd think that at some point clowns like norquist would moderate their views based on realtime results and feedback. But no. It's a flawed doctrine and culture of personality of the republican.


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