Oct 20, 2014. Republicans claim Democrats are bad for business, but the stock market disagrees. It rose more than twice as fast under Obama as under Reagan. In fact since Reagan (1981) stocks have gained 13% under Republicans and 450% under Democrats. That’s 35 times more, and they had six years less time. [Email the Fact Card]
Economic Stimulus and Stock Prices
Why do Democrats win out? Because the stock market likes economic stimulus and the Republicans hate it. But you’ve heard that business sides with the Republicans, right? It does, but what does it say with its money? Every time there’s more economic stimulus, stocks go up and every time stimulus is cut back, they go down. Stimulus works, and business knows it. Here’s a typical quote from the Wall St. Journal:
Sept. 18, 2013. “Stocks soared to new highs Wednesday after investors embarked on a broad buying spree, propelled by a surprise decision by the Federal Reserve to keep its bond-purchase stimulus plan intact.”
The Republicans’ anti-government ideology tells them economic stimulus can’t work and they don’t do it. So the economy does worse, stocks do worse and there’s more unemployment. Check there 85 year record on unemployment here.