Republican Presidents are Not Better for the Economy

Did you know economy is neutral on Democrats versus Republicans?

That’s right, when you get into a conversation , traditionally Republicans take the stance that their party is better for the economy while Democrats may traditionally take the stance that their party is stronger on social issues. When it comes to the economy, it is FALSE that Republicans are better!  Read on.

In fact, Democrats and Republicans have had almost identical impacts on the economy over the last 100 years—and Democrats have a far better track record on employment rates.

Since World War I, there have been eight Democratic presidents.

Democrats are known to prefer government spending over tax cuts, especially for the wealthy, as a way to boost the economy. The exception is for defense, where Democrats are considered weaker than Republicans. They don’t worry as much about balancing the budget as Republicans do. But these eight presidents did not all follow these stereotypes.

Here is an analysis of these eight presidents and their major economic achievements. You’ll be able to see how much they followed the economic policies of their party. Most of them responded with expansionary fiscal policy to pull the country out of a recession or depression. Many also had to increase defense spending on wars.

The chart below outlines the change in real gross domestic product during each of the president’s terms (highlighted in gray), according to the U.S. Bureau of Economic Analysis.

Over the last six decades or so, history has tended to favor Democratic presidents in terms of economic performance. The country’s unemployment rate has been lower at the end of every Democrat’s tenure since Kennedy took office in 1961. Ronald Reagan, meanwhile, is the only GOP president since Dwight Eisenhower took office in 1953 who can say the same. Federal Reserve chairmen appointed by Democrats preside over faster growth than Federal Reserve chairmen appointed by Republicans by a wide margin.

Since World War I, there have been 10 Republican presidents, who have been primarily known for being fiscally conservative according to the GOP platform. But if we look back at history, they did not all follow these stereotypical Republican policies. These include tax cuts, debt reduction, spending cuts except for defense, and a balanced budget. Instead, many of these presidents responded with expansionary fiscal policy.