Peter1469
11-19-2015, 04:43 PM
Political performance gap (http://www.economics21.org/commentary/clinton-highlights-political-performance-gap-avoids-details)- the chart at the link was discussed here before. Some are claiming that the economy did better under democratic presidents than republican presidents. I recall responded with the word "causation?"
Here is an article that proves my point.
http://www.economics21.org/files/fig1baum_0.png
"If you look at the Republicans versus the Democrats when it comes to economic policy, there is no comparison. The economy does better when you have a Democrat in the White House." - Hillary Clinton, Oct. 13, 2015
Clinton could have said, "a lot better," or "based on various metrics," and still been correct in her statement. What she left out was a key finding of the economic research (http://www.princeton.edu/~mwatson/papers/DemRep_BlinderWatson_July2015.pdf) she is fond of citing on the superior economic performance under Democratic presidents: the lack of causality.
There is plenty to discuss about the article and its findings for those up to it.
So what explains the economy's better performance under a Democratic president? Luck, I'm afraid. Even Blinder and Watson concede the better outcomes under Democrats may be "blends of good policy and good luck," reiterating that their empirical analysis does not assign causality to fiscal or monetary policy.
Here is an article that proves my point.
http://www.economics21.org/files/fig1baum_0.png
"If you look at the Republicans versus the Democrats when it comes to economic policy, there is no comparison. The economy does better when you have a Democrat in the White House." - Hillary Clinton, Oct. 13, 2015
Clinton could have said, "a lot better," or "based on various metrics," and still been correct in her statement. What she left out was a key finding of the economic research (http://www.princeton.edu/~mwatson/papers/DemRep_BlinderWatson_July2015.pdf) she is fond of citing on the superior economic performance under Democratic presidents: the lack of causality.
There is plenty to discuss about the article and its findings for those up to it.
So what explains the economy's better performance under a Democratic president? Luck, I'm afraid. Even Blinder and Watson concede the better outcomes under Democrats may be "blends of good policy and good luck," reiterating that their empirical analysis does not assign causality to fiscal or monetary policy.