If you had pulled money from the stock market and put it into a European savings account on the day that George Bush was sworn in, you would have twice as much money as someone who left it in place.
As the Republicans talk up the economy, it might be worth looking at some hard data.
About 10 years ago, roughly 80% of Americans were in a pension plan. Stock market performance was of some interest. Today, nearly 80% of Americans are in 401(k) plans that directly depend on stock market performance.
Imagine two people who had $500,000 invested in the S&P 500 on January 20, 2000, when George took office.
Denny the Democrat, fearing George's policy and not knowing what else to do, sold all his stock at the opening bell and bought euros, putting all his money in a decent but conservative 3% a year savings account.
Reggie the Republican, delighted that his man was now at the helm, left his money in the S&P 500, trusting in the American economy and dollar.
Reggie lost 15% of his money, leaving him with just $424,765.
Denny made more than 69%, leaving him with $850,410, exactly twice as much as Reggie.
Reggie will have lost more than $75,000, while Denny will have made more than $350,000. Funny thing - no one has bothered to mention this at the convention. In fact, if you listen closely to McCain and his fellow speakers at the RNC, you would think that were NOT the incumbent party.
It's not just rising gas and grocery prices that have wearied folks. It is not just stagnant wages. It is no surprise that only 10% of Americans feel good about the economy. It is a surprise that the Republicans are able to gather a crowd in Minneapolis.
R World (Ron Davison muses aloud)
I know. It is simply stunning that they've been able to bring more than just their family members and friends to come together. I sincerely have no idea WHO they are talking to and how they can manage to convince anyone at all.
ReplyDeleteWho would have thunk it? An MBA president with plenty of chief executive experience (Gov. of Texas and CEO of Texas Rangers) destroys the American economy with reckless spending, borrowing, and tax/investment policies.
ReplyDeleteTonight Rudy Giuliani trashed Obama for lack of executive experience. Look at what "executive experience" got us from 2000 to 2008!
Ron,
ReplyDeleteTell the whole story.
We were right at the peak of the internet bubble. Do the same thing but go back 4 years to see the impact of the republican controlled congress.
Now go back 2 years to 2006 and see how the democrats have done since they have been in charge.
Remember, that the budget and laws are made by this congress. They need to take credit or blame for our economy.
Don't push lies by taking things out of context.
Tim
Milena,
ReplyDeleteIt seems as though they are talking to people with a real hunger for vague solutions.
LH,
Who would have thunk it indeed?
Tim!
Good to have you at R World. And yes, there was a tech bubble - which is why to be kind I chose the S&P 500 rather than the NASDAQ. And lies? What part of this is a lie? These are simple facts. All of Congress and the White House were under the Republicans from 2000 to 2006. Since then, Bush has still been able to veto anything the Dems put up and they don't have enough votes to over-turn it. I think we're seeing pretty clearly what Republicans have in mind when they talk about smaller government and better economic policies. How many decades would you give them before you acknowledged the numbers just might have something to do with their policies? Just tell me which part of this post is a lie.
Ron,
ReplyDeleteI was hoping to get a response with the strong language "lie", sorry;-). It is just data out of context. The tech bubble bursting affected all of the stock market, not just the nasdaq, and then there was 9/11.
Have you been listening to Obama, he states that he will have to hold off on his history making tax increases, until the economy stabilizes. If he understands that a larger government and more burden on the people is not good in a poor economy, than how is it going to help in a great economy??
Run your numbers from Jan 2002 through Jan 2007. I will buy you a nice dinner if there wasn't growth. The second half of 2001 is when we hit the bottom of the Clinton/Democrat recession, until the republicans were booted from congress in 2007. Now track from Jan 2007 to now.. Democrats are in control, it is a train wreck..
Bush didn't veto the republicans when they were in their spending frenzy, why would he change when the democrats take it to a whole new level? Bush's approval is in the 30% range. The democrat congress is hovering around 9%??
Both are getting hit, mainly because they are out of touch and spending too much money. IMHO.