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article imageWhich party fares better for American pocketbooks and capitalism?

By Chris V. Thangham     Oct 15, 2008 in Politics
If you invest $10,000 during either a Democrat-only administration or Republicans-only administration, which one gets a maximum return on investment? The New York Times’ Tommy McCall says Democratic is the way to go.
By sheer coincidence or not, since 1929, Republicans and Democrats have each controlled the presidency for the same amount of time -- nearly 40 years. Tommy McCall did a comparative study to see which party benefits citizens and capitalism as a whole.
Imagine you are investing $10,000 exclusively under either Republican or Democrat administrations: Which administration would give you the greatest return?
McCall assumed investing in S&P stock mark index for this study. Under Republican administrations, a $10,000 investment in the S&P stock market index would have grown to $11,733. But if the Herbert Hoover’s presidency term is excluded, where the Great Depression occurred, then it would have grown to $51,211.
If the same amount was invested solely during the Democratic administrations, the $10,000 amount would have grown to $300,671 at a compound rate of 8.9 per cent for those 40 years. Under Republican administrations, however, you would get a return of 4.7 per cent (including Hoover's it is 0.4 percent)
Growth of money under Democrats and Republicans.
Growth of money under Democrats and Republicans.
Bloomberg
Bill Clinton’s administration yielded the most return, at 15.2 per cent, while George Bush’s term yielded the worst returns at -5.1 per cent.
Do you agree with McCall’s analysis?
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