Supply Side Austrian School Failure
2017-11-12 04:49:50 UTC
Republican presidents seemingly can't do without recessions, Joachim Fels,
global economic adviser for Pacific Investment Management Co., wrote in a
blog post dated Dec. 12.
The same cant be said of Democrats. Outgoing President Barack Obama did
preside over an economic downturn in his first six months in office one he
inherited from his predecessor, Republican George W. Bush. John F. Kennedy
took office just before a recession ended. And the U.S. entered and exited
slumps when Jimmy Carter and Harry Truman were in charge.
But it was recession-free during the tenures of Democrats Lyndon Johnson in
the 1960s and Bill Clinton in the 1990s.
"The U.S. economy has performed better when the president of the United
States is a Democrat rather than a Republican," Princeton University
professors Alan Blinder and Mark Watson wrote in a paper published in the
American Economic Review this year.
The difference isn't due to more expansionary fiscal and monetary policies
under Democrats, according to Blinder, who served in the Clinton White House,
Instead it appears to stem from less costly oil shocks, a more favorable
international environment, productivity-boosting technological advances and
perhaps more optimistic consumers, they wrote.