Who’s Your Daddy? Stock Market Gains Historically Higher Under Democrats

Author: October 15, 2012 12:14 pm

Despite the claims by Republicans that Democrats are bad for business, the historical proof tells a different story. According to The Economist, quoting sources at Barclays Capital, the past 83 years shows a stark difference in stock market gains and losses under both Democratic and Republican administrations. The Democrats come out the clear winner.

Researching data and crunching the numbers going back to the stock market crash of 1929, Barclays reports that under Democratic administrations, the nominal share price has increased 460% while under Republican administrations it has increased 100%. The nominal share price, or par value, is the value as listed on the share certificate as opposed to the market share, which can be higher or lower than the nominal value. Investors are always more interested in the market price. More importantly, the cumulative value of shares has risen 300% under Democratic administrations. The Republicans? Nil. That’s right. Zero. Nada. A big, fat goose egg.


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Even Fox Business reports that the historical data favors Democrats and shows that not only stocks but also the Gross Domestic Product has performed better when the Democrats are running the show. Quoting a report from McGraw Hill’s S&P Capital IQ, FBN has noted that the S&P 500 has recorded average gains of 12.1% per annum since 1901 under Democrats while Republican gains have come in at an average of 5.1%. Under Democrats the GDP shows increases of 4.2% per annum compared with 2.6% under Republicans.

In the unkindest cut of all, corporate profits do better under Democrats than under Republican tutelage, recording a median increase of 10.5% per year since 1936 compared to 8.9% under Republicans.

Of course, FBN had to get in its jabs and tried really hard to make it seem as if the Democrats “tax and spend” policies wind up doing damage that Republicans then have to come in and fix. Maybe, they posit, it’s those nasty stimulus packages that make everything seem better than it really is. Or perhaps (and better yet) the recovery is actually due to the policies of the previous administration. If you believe that, I’ve got some prime oceanfront property in Phoenix Arizona I’d just love to sell you because we all know that George W. Bush inherited a surplus and left us with a train wreck.

You can slice and dice numbers any way you want, but when you’ve got over a century of data and that data shows who does better, time and time again, then you’ve got to go with the numbers. It’s called arithmetic.

Ann Werner is a blogger and the author of CRAZY and Dreams and Nightmares. You can view her work at ARK Stories

Visit her on Twitter @MsWerner and Facebook Ann Werner

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