“Jobs” and “the economy” are two words always on the minds of voters – especially during an election cycle. At least, that’s what the teevee pundits constantly tell us. After a very rocky period due to COVID, the lockdown, and ensuing supply chain issues, there are strong signs that our economy is getting back on its feet, even as inflation still lingers around the globe.
In 2021, we had 5.7% real growth and 6.6 million Americans getting back to work. Despite the pandemic, 2021 had the highest annual growth since 1984. This kind of comeback story has repeated itself throughout our country’s history. It’s been proven that the economy does better during Democratic administrations. Yes, there are blips (the Carter years), but from 1933 to 2020, we had 14 different presidents, evenly split between Republicans and Democrats. Under Democrats, the economy grew an average of 4.6% per year. Republican administrations only saw an average of 2.4%.
What’s even more impressive is that these kinds of numbers came from Democrat presidents who inherited serious economic situations from their Republican predecessors. Ten of the last 11 recessions began under Republican administrations.
Economists note that a difference in philosophies largely drives the disparity in performance between Democrats and Republicans. Historically, Republicans are pro-business. Generally, they believe that policies that sharply cut taxes for corporations and the wealthy will trickle down in terms of hiring more workers, etc. Sadly, we’ve had several decades to see firsthand that “trickle-down economics” simply doesn’t work. Much of those savings go to shareholders and stock buybacks; it generally does not go back into our economy.
Democrats, on the other hand, have largely directed their economic policies towards the poor and middle-class. With more disposable income, ordinary people spend it, generating the need for goods and services. Biden describes it as building the economy, not from the top down, but from the bottom up and the middle out. Even if you’re not a big-brained expert on finance and economics, this just makes sense.
The 2021 American Rescue Plan was largely based on this idea. Part of the act put resources directly into citizen hands. One analysis shows that early in the going, the ARP nearly doubled GDP growth and resulted in nearly 4 million jobs.
Those of us “of a certain age” (like yours truly) have seen firsthand that putting people over business is the better plan to keep the economy growing. From Clinton, Obama, and now to Joe Biden, the end results of Democrat policies include righting the ship after dire national circumstances (like the 2008 Great Recession). We also enjoyed budget surpluses and seeing folks on the lower end of the ladder finally get a leg up.
Those are policies worth keeping.
What’s going on in your community economically? Are you seeing more growth and hiring? What was your experience with the American Rescue Plan or Child Tax Credit? Have you found your financial situation doing better under Democrats or Republicans? Sound off on our Community Soapbox!
Cindy Grogan is a writer, lover of history and "Star Trek" (TOS), and hardcore politics junkie. There was that one time she campaigned for Gerald Ford (yikes), but ever since, she's been devoted to Democratic and progressive policies.
Original source can be found here.
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