Fine don't read the truth
The Biden Administration Handed Over a Strong Economy
Here are five reasons why the U.S. economy was at its best in decades, right before President Trump took office for his second term.
Here are five reasons why the U.S. economy was at its best in decades, right before President Trump took office for his second term.
www.americanprogress.org
“It’s the economy, stupid.” Despite all the hot-button issues swirling throughout the presidential campaigns, when the time came, people primarily voted their pocketbooks. As economists ourselves, we can’t disagree with this general assessment.
That said, many journalists and pundits seem puzzled by a conundrum. The economy under President Joe Biden was remarkably strong, so why did Biden lose?
A simple model may explain the results of the US presidential election.
www.chicagobooth.edu
The consensus in the media seems to be that even though the economy is strong, people see it differently. Voters, burned by the rising price of groceries, felt pinched and demanded change. This story surely describes some voters, but we find it hard to believe that Americans elected Trump because they are confused about the economy.
Our main thesis is that a strong economy favors Republicans, and a weak economy favors Democrats, regardless of the incumbent.
Take the two biggest economic crises of the past century. In November 1932, when Americans were living through the Great Depression, they put Franklin D. Roosevelt, a Democrat, in the Oval Office. In November 2008, during the Great Recession, they elected Barack Obama, another Democrat.
And look at Bush 2. Clinton had a great economy and yet Bush won in 2000
In November 2016, when the economy was doing well, the Republican candidate, Donald Trump, was elected. In November 2020, during the COVID-19 crisis, voters preferred a Democrat, Joe Biden. This year, with the economy doing well again, the electorate went Republican.
In general, Democrats prefer high tax rates, and Republicans prefer low ones. When electing one party or the other, voters expect taxes to rise or fall. According to our calculations, the ratio of taxes to GDP rises by 0.44 percent per year, on average, under Democratic administrations and falls by 0.3 percent per year under Republican administrations. That’s a spread of 0.74 percent per year, which is highly significant.
Key to our findings is how voters feel about risk. We argue that when the economy is weak, Americans become more risk averse, and that’s why they favor the party that promises redistribution and social insurance—Democrats. During booms, by contrast, voters are more willing to take risks and therefore more likely to elect Republicans, who favor lower taxes.
OR lowering interest rates when the Fed says don't. Or deregulating the banks. Something Bush did right before the crash.
www.foxnews.com
