Say It Again With Gusto: Democrats Are Better For the Economy Than Republicans

The Wall Street Journal offers some sage advice today:

For investors worried about how the stock market will fare in the event of a divided government or a sweep by either party in next month’s elections, history offers an important lesson. Stocks tend to go up regardless of which party controls Washington.

This is true. But it’s incomplete, since you might wonder how much the stock market goes up under Democratic and Republican presidents. I’ve got you covered, with the two-term presidencies labeled:

This, of course, is just one of many mysteries of the business community: In general they support Republicans even though Democrats tend to turn in better economic performance. It’s true, however, that Democrats also tend to favor stronger corporate regulation than Republicans, and this produces an interesting exercise in revealed preference: Corporate CEOs are apparently more concerned about regulation than they are about their shareholders.

There’s no question that regulations are annoying, and they can produce a lot of tedious, blood-pressure-raising meetings for CEOs and the rest of the executive suite. They’re also highly salient, whereas economic growth is diffuse and long-term—sort of like climate change. Besides, if CEOs read the Wall Street Journal’s editorial page regularly—and they probably do—they’re most likely convinced that Democrats are routinely disastrous for the economy.

So which is it? Are corporate CEOs shafting their shareholders in order to make their own lives more pleasant? Or do they imbibe too much conservative muck that falsely tells them Democrats are terrible for growth? Or both?

WE'RE TAKING A SHORT BREAK…

from the big banner at the top of our pages asking for the donations that make Mother Jones' nonprofit journalism possible. But we still have upwards of $300,000 to raise by June 30, whether we get there is going to come down to the wire, and we can't afford to come up short.

If you value the reporting you get from Mother Jones and you can right now, please join your fellow readers who pitch in from time to time to keep our democracy-advancing, justice-seeking journalism charging hard (and to help us avoid a real budget crunch as June 30 approaches and our fiscal year ends).

payment methods

WE'RE TAKING A SHORT BREAK…

from the big banner at the top of our pages asking for the donations that make Mother Jones' nonprofit journalism possible. But we still have upwards of $300,000 to raise by June 30, whether we get there is going to come down to the wire, and we can't afford to come up short.

If you value the reporting you get from Mother Jones and you can right now, please join your fellow readers who pitch in from time to time to keep our democracy-advancing, justice-seeking journalism charging hard (and to help us avoid a real budget crunch as June 30 approaches and our fiscal year ends).

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate