Conventional wisdom is that the Republicans — friends of big business, the rich, and Wall Street — are the ones who can lead the country to economic prosperity, while the Democrats are the party of tax and spend and forcing business to conform to crippling regulations that inhibit growth in order to save the world or something.
Yeah, except according Suzy Khimm at Wonkblog, JP Morgan — that bastion of socialism — shows that the conventional wisdom has it backwards.
The economy has grown the most when Democrats have been in total control of Washington. But, interestingly, it’s grown the least when there’s been a Democratic president and a GOP-controlled Congress–our current scenario.
How about that?
As Suzy notes, there are any number of reasons as to why the economy might do better under the Democrats; the overall economy doesn’t move at the speed of politics, and a policy implemented by one party could have an impact long after they’ve left power. But even so, it makes it hard for a politician of any party to promise instant results when they take office, and it makes it clear that the decisions made by the previous administration can be the major factor in the economic policy of the one that comes after.
But why take a chance? If you want to see the economy grow, stick with the Democrats.