Economic Prosperity and the Presidents
By John Lyman | July 28, 2004

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If one believed everything the Republican National Committee and Fox News put out, it would be easy to think that achieving economic prosperity is simple: start with a big tax cut, blend in some spending reductions, add a dash of deregulation and sit back and watch the economy cook. After all, Republican presidents use this recipe and the economy booms as a result, right?

Interestingly, a recent Forbes article and a separate American Progress Action Fund analysis show that this assumption is a myth. Forbes – a business magazine not especially prone to fits of liberalism – found that over the past fifty years, Democratic presidents have had substantially more success with economic prosperity during their terms than have Republicans.

The Forbes rankings take into account a variety of economic factors (GDP growth, per capita income growth, employment gains, unemployment rate reduction, inflation reduction and federal deficit reduction) and are a good gauge for how average Americans fared during each president's tenure in office. The rankings are not based on a specific economic theory, but instead simply combine data that experts recognize as indicators of a healthy economy.

Economic Prosperity by President

Rank
President

1
Bill Clinton

2
Lyndon Johnson

3
John Kennedy

4
Ronald Reagan

5
Gerald Ford

6
Jimmy Carter

7
Harry Truman

8
George W. Bush [*]

9
Richard Nixon

10
Dwight Eisenhower

11
George H.W. Bush



Not surprisingly, Bill Clinton tops the magazine's prosperity chart. He is followed by two other Democrats – Johnson and Kennedy. The first Republican to show up is Reagan, who comes in fourth. No Democrat finishes lower than seventh (Truman), and the last three spots are all occupied by Republicans (Nixon, Eisenhower and George H.W. Bush). On a scale of one to eleven (one being Bill Clinton, eleven being the elder Bush), Democrats have an average ranking of 3.8, Republicans of 7.8.

Since Forbes chose not to include the current President Bush in their rankings, the American Progress Action Fund took the liberty of running the numbers based on the data available for his term to date. Primarily due to job losses and staggering deficits, the President ranks 8th (out of 11), wedged in between Harry Truman and Richard Nixon.

In a recent analysis, Brian Deese, a Senior Policy Analyst for Economic Policy at the Center for American Progress, found that this trend of better economic data under Democrats holds true for the last four presidents. Michael Kinsley, writing in the Washington Post, came to a similar conclusion when he ran the numbers. During Bill Clinton's years in office, the United States experienced the longest period of economic expansion on record, created 23 million new jobs and saw income gains shared across the income spectrum. Under Ronald Reagan and the two Bushes, America lost manufacturing jobs, experienced increased deficits, and suffered from either decreases or minimal increases in real wages per capita.

Although presidents always receive more credit and blame for the economic outcomes that occur under their watch, the data is clear on one point: despite the myth created by the right, the American economy has done better during Democratic presidencies than Republican presidencies.

* Ranking based on available data for George W. Bush's first term.

John Lyman is a research associate at the American Progress Action Fund

Neither. Both are too large, than the people that they serve. Both have abused the system to where it has snowballed at the present. Both are paid too much MONEY AND receive TOO MUCH credit for doing too little, working too few hours at a part-time job, with a minimum of 4 one- month vacations galore, having overlapping, biased, hence corrupt conflict of interests. Same with the media who, too, should stick to one job that of being an objective reporter.

THE MESSAGE IS DO ONE THING AND DO IT WELL, AND WHOEVER DOES THE JOB, GETS THE CREDIT. NO MORE ONE POWER GUY GETTING THE CREDIT FOR THE WORK OF A STAFF OF 10,000. MORE PEOPLE WILL HAVE MORE JOBS AND DO A BETTER JOB RUNNING THE GOVERNMENT MORE EFFICIENT FOR THE PEOPLE. THE GOVERNMENT JUST MIGHT WORK.

Do people really not remember how we got into this mess?

The Republicans are responsible for the state of the economy. They were in office for twelve years during which time jobs were out sourced to the detriment of our country. Resolving the problem would require jobs and people working and not facing lay-offs. Now the Democrats have the huge responsibility of recreating jobs and in America of all places. It is redundant.
and facing lay-offs. Now the Democrats have the huge responsibility of re-creating jobs and in America of all places. That is redundant.

Its not a party question, it depends on the individual candidate. Regardless the bottom line is stop spending and work on an agressive plan to reduce the deficit. States have to do the same. Remove programs such as the federal government paying for people on social services to have cell phones. Since when is that a necessity?? How about mandatory Generics when utilizing food stamps. That could cut food stamp spending in half. Me and my husband both have worked all our lives and have to buy generic products. How about investgating for those who "cash in" food stamps at 50% cash value and remove them permanently from the program. Speaking of investigating and saving money, investigate those on Medicaid. I personally know people who are able to take lavish vacations, own homes, several cars, etc that are on medicaid. They just own their own business and make sure to claim less income then federal poverty limits. But a visit to their homes would saw how poor they really are. That is only the few I know of. When folks can spend 10,000 on a European vacation or a cruise to St Thomas for family of 4 and be on medicaid. If medicaid was investigated the government could save alot of Money regarless of what party.

The Republicans are responsible for the state of the economy. They were in office for twelve years, during which time jobs were out sourced to the detriment of our country. Resolving the problem would require jobs and people working and not facing lay-offs. Now the Democrats have the huge responsibility of re-creating jobs and in America of all places. It is redundant.

Republicans. The Democrats have had the Congress since 2006 and look what it has given us. As an independent I doo not have to drink the cool aid of the Repukes or Democraps. This President has made things worse than idiot Bush could ever have. November is coming and I can't wait to vote out every Democrap that I can

The outsourcing by both Republicans and Democrats of prior administrations has resulted in not enough decent jobs in America. The policies of the last Administration (Republicans) did nothing to change that fact and also resulted in a failed economy.

So what did we do? We put Democrats in power to “change” this direction, to be responsible, to help to create private jobs and defend the rights of every hard working American. What did the Democrats do? They went on a shopping spree. Health care for all. Expand public sector jobs. Make deals with the Unions. Spend more money on special interests. In your face private sector. In your face majority will. Defend the illegal’s, the public secter elites, the CEO’s, the interest of other countries over our own, defend the legacy of this president. America must conform to OUR will.

What did these Democrats do with their opportunity to save this country? They divided our nation and abused their power. Anybody would be better. Even the Republicans.

Bring Back Bush!
--------------------------------------
THE END OF THE BUSH TAX CUTS AND THE BEGINING OF OBAMACARE:
What they will really mean to you...


In just a few months, on January 1, 2011, the largest tax hikes in the history of America will take effect.

They will hit families and small businesses in three great waves.

On January 1, 2011, here’s what happens... (read it to the end, so you see all three waves)...

First Wave:

Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families.

These will all expire on January 1, 2011.

Personal income tax rates will rise.

The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed).

The lowest rate will rise from 10 to 15 percent.

All the rates in between will also rise.


Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as highermarginal tax rates.


The full list of marginal rate hikes is below:

- The 10% bracket rises to an expanded 15%

- The 25% bracket rises to 28%

- The 28% bracket rises to 31%

- The 33% bracket rises to 36%

- The 35% bracket rises to 39.6%

Higher taxes on marriage and family.

The "marriage penalty" (narrower tax brackets for married couples) will return from the first dollar of income.


The child tax credit will be cut in half from $1000 to $500 per child.


The standard deduction will no longer be doubled for married couples relative to the single level.


The dependent care and adoption tax credits will be cut.


The return of the Death Tax.

This year only, there is no death tax. (It’s a quirk!) For those dying on or after January 1, 2011, there is a 55 percent
top death tax rate on estates over $1 million. A person leaving behind two homes, a business, a retirement account, could easily pass along a death tax bill to their loved ones. Think of the farmers who don’t make much money, but their land, which they purchased years ago with after-tax dollars, is now worth a lot of money. Their children will have to sell the farm, which may be their livelihood, just to pay the estate tax if they don’t have the cash sitting around to pay the tax. Think about your own family’s assets. Maybe your family owns real estate, or a business that doesn’t make much money, but the building and equipment are worth $1 million. Upon their death, you can inherit the $1 million business tax free, but if they own a home, stock, cash worth $500K on top of the $1 million business, then you will owe the government $275,000 cash! That’s 55% of the value of the assets over $1 million! Do you have that kind of cash sitting around waiting to pay the estate tax?



Higher tax rates on savers and investors.

The capital gains tax will rise from 15 percent this year to 20 percent in 2011.

The dividends tax will rise from 15 percent this year to 39.6 percent in 2011.

These rates will rise another 3.8 percent in 2013.



Second Wave:

Obamacare


There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:



The "Medicine Cabinet Tax"

Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).


The "Special Needs Kids Tax"

This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children.

There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education.

Tuition rates at one leading school that teaches special needs children in Washington , D.C. ( National Child Research Center ) can easily exceed $14,000 per year.

Under tax rules, FSA dollars cannot be used to pay for this type of special needs education.


The HSA (Health Savings Account) Withdrawal Tax Hike.

This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.




Third Wave:

The Alternative Minimum Tax (AMT) and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2011, they'll be in for a nasty surprise - the AMT won't be held harmless, and many tax relief provisions will have expired.

The major items include:


The AMT will ensnare over 28 million families, up from 4 million last year.

According to the left-leaning Tax Policy Center, Congress' failure to index the AMT will lead to an explosion of AMT taxpaying families-rising from 4 million last year to 28.5 million. These families will have to calculate their tax burdens twice, and pay taxes at the higher level. The AMT was created in 1969 to ensnare a handful of taxpayers.


Small business expensing will be slashed and 50% expensing will disappear.

Small businesses can normally expense (rather than slowly-deduct, or "depreciate") equipment purchases up to $250,000.

This will be cut all the way down to $25,000. Larger businesses can currently expense half of their purchases of equipment.

In January of 2011, all of it will have to be "depreciated."


Taxes will be raised on all types of businesses.

There are literally scores of tax hikes on business that will take place. The biggest is the loss of the "research and experimentation tax credit," but there are many, many others. Combining high marginal tax rates with the loss of this tax relief will cost jobs.


Tax Benefits for Education and Teaching Reduced.

The deduction for tuition and fees will not be available.

Tax credits for education will be limited.

Teachers will no longer be able to deduct classroom expenses.

Coverdell Education Savings Accounts will be cut.

Employer-provided educational assistance is curtailed.

The student loan interest deduction will be disallowed for hundreds of thousands of families.


Charitable Contributions from IRAs no longer allowed.

Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA.

This contribution also counts toward an annual "required minimum distribution." This ability will no longer be there.



And worse yet?


THIS PART IS NOT ACCURATE - IT WILL BE REPORTED BUT NOT TAXED (YET!)!

!!Now, your insurance will be INCOME on your W2's!

One of the surprises we'll find come next year, is what follows - - a little "surprise" that 99% of us had no idea was included in the "new and improved" healthcare legislation . . . thedupes, er, dopes, who backed this administration will be astonished!

Starting in 2011, (next year folks), your W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are given by the company. It does notmatter if that's a private concern or governmental body of some sort.

If you're retired? So what... your gross will go up by the amount of insurance you get.

You will be required to pay taxes on a large sum of money that you have never seen. Take your tax form you just finished and see what $15,000 or $20,000 additional gross does to your tax debt. That's what you'll pay next year.

For many, it also puts you into a new higher bracket so it's even worse.



This is how the government is going to buy insurance for the15% that don't have insurance and it's only part of the tax increases.

Not believing this??? Here is a research of the summaries.....

On page 25 of 29: TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec. 9001,
as modified by sec. 10901) Sec.9002 "requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer sponsored group health coverage that is excludable from the employees gross income."

- Joan Pryde is the senior tax editor for the Kiplinger letters.
- Go to Kiplingers and read about 13 tax changes that could affect you. Number 3 is what is above.

MY ADDED COMMENT!

LAST but far from least – effective January 1, 2013 – sell a property – PAY A FEDERAL TAX of 3.8% on gross sales price. Doesn’t matter if you make a profit on sale – it is on GROSS not net.
Worse part of this from my perspective is as a new tax it is an “opportunity” that the government can continue to exploit. No guarantee that the 3.8% won’t be increased in later years – remember social security was never suppose to exceed 1%. And of course there is the second shoe – since the Federal government is applying this tax, why not the State government too? As a potential source of large bucks – it may be too attractive for States to resist.

Ha Ha Ha! Hilarious! Thanks Bill F!

The stupid of this country think that only 'the rich' benefited from the Bush tax cuts.

Notice how Bush cut the lowest rate by 50%, (for the people who really needed it) and the highest rates by 12%.

So when the Bush tax rates expire the lowest marginal filers will pay 50% more.

Say goodbye to that 45% who dont pay federal taxes because of the Bush tax cuts.

one comment read bring back bush. You must be kidding. When the rates expire for the rich it will not be a tax increase but a return of the rates to the clinton era. The wealthiest 1% will not pay 39% that is a fallacy. With a good tax professional they pay about 10%.It is still undecided about capital gains and dividends being taxes at maximum rates. I believe the democrats are better for the middle class than the republicans. Look at the credit card bill, financial regulation. The republicans would give a pittance of a payroll tax and then proceed to give relief to corporations who do not need it because they are sitting on piles of cash. The congress should look at this corporate welfare (subsidies to oil co etc) and defense budgets. Why are we maintaining bases in europe when the war ended in 1945. Those countries can fend for themselves. This fiscal commission appointed to look at entitlements such as social security and medicare is not interested in saving them only cutting them to the bone or privatize them Ronald Reagsn with the help of the democrats saved social security back in the 80. But it was the ceongress who used the surplus for other programs. I do not see the republicans as helping the middle class as they just say no to every program. Just watch Cnn and get a education when congress is in session

“I believe the democrats are better for the middle class than the republicans…I do not see the Republicans as helping the middle class as they just say no to every program.”

I guess it depends on what kind of help you want. Ideally when the people are empowered then we benefit the most. Both Republicans and Democrats often rig the system against the people and in favor of the Corporations, that’s why we have no jobs and no leverage.

These Democrats however, are taking it a step further by also empowering themselves. The way they are helping the middle class is similar to a rebate program. The money they are giving you belongs to you in the first place but it’s a rebate rather then a cut because that way they can control it.

So when the Republicans say “no” to extended unemployment benefits unless we can cut something first and the Democrats say “yes” where is that money coming from really? Are they reaching into their deep pockets and giving it to you? Are they taking it from the excess of the rich CEO’s of the company’s they bailed out? No, they are not being generous or responsible. They are borrowing it directly from you and your children and acting like they are giving you something or doing you a favor but clearly in the long run they are not.

Mike your comment that unemployment is coming directly from us and our children. This may be true but the uemployment extension would cost 33 billion. The republicans wants to extend tax cuts to the rich and that would cost 700 billion in lost revenue. They are not doing you or your children any favors. We are in the middle of a depression not a recession and more new ideas will be needed to restore the economy. To give more tax cuts to the rich is one of the poorest ways to create new jobs. If it goes to small business they would create new jobs. While they extend it to small busines they also have to let them know the future of health care costs and future taxes so they could plan accordingly. Some of these taxes for future health care costs should be wiped out so they do not place a burdensome of the small business.

Peter, I agree with you, tax cuts to small businesses to create new jobs is the way to go. Is either party suggesting that? I really don't know? Some say many of those small businesses are owned by the rich.

Since the age of outsourcing and the stock price driven business culture, I no longer believe in the trickle down theory. For the most part, simply handing money to big Corporate does not automatically make things better for us.

You and I have the same goal to make things better for the middle class and whatever way that can happen without giving up our freedom, I agree. Taxing the middle class more is not the way. Cutting taxes on the rich with no bang for the middle class is also not the way. Phony stimulus packages in my view, is really not the way. There is too much hype and theory and not enough facts about our current situation to know what needs to be done. Even history may not be helpful. We need knowledgeable, honest and fair minded leadership with fresh ideas.

Where can we find that Peter? Why aren't there any qualified people throwing their hat in the ring to lead this nation? Instead, we had to deal with a sorry bunch for many years now.

Mike I think we agree on alot of items and you are right not enough qualified people are not going in to public service, There are several reasons; the cost of running a campaign and lobbyists. In connecticut a linda mcmahon is running and willing to spend 50 million dollars, In florida on the democrat senatorial race meek won against a billionaire. I think it is disgusting to buy elections. I am not against millionaires running but spending that amount of monies for a position paying $100k is not morally right. The second reason are those cockroaches called lobbyists that infect congressIn both the credit card and financial regulation with both parties they got watered down legislation. I hope in the future they can legislate lobbyists and get more honest politicians. But thats like wishing for a million dollars

Pete> It is estimated that all the millionaires who are running for office this year will pump more than a few billion dollars into local economies? Is that bad too?

Extension of unemployment insurance.

Both parties agreed on the extension, but couldnt agree on how to fund it. The repugs wanted to use $33 billion of un-used stimulous money. The democrats wanted to borrow it from the bank. The democrats won.
Another $33B tacked on to the deficit.

Govt can only raise money two ways. Through taxes or borrowing. However, they can save money by cutting spending on programs. If they dont have the money to pay for the programs, they usually borrow it. Future taxes (or more borrowing) pays it off.

With the current unemployment, loss of manufacturing, and the huge amount of borrowed govt debt, our children and grandchildren will pay five times the taxes we pay now, if America is to survive in the status quo.

FIRST OBAMA said that huge Stimulus Bill was going to CREATE JOBS.

THEN OBAMA said that gigantic Stimulus Bill had actually SAVED JOBS. (Prove that please!)

NOW OBAMA says that American-killing Stimulus Bill has 'LIVES TOUCHED!'


Whoa! Wait a minute! What does "LIVES TOUCHED" mean?

It means that one American who worked even for only one hour a month gets counted in as a "LIFE TOUCHED."

And they think YOU ARE GOING TO BUY THIS DRIVEL! ARE YOU STUPID OR WHAT?

CBO: Eight Years of Iraq War Cost Less Than Stimulus Act:

August 30, 2010

President Obama prepares to tie a bow on U.S. combat operations in Iraq, Congressional Budget Office numbers show that the total cost of the eight-year war was less than the stimulus bill passed by the Democratic-led Congress in 2009.

According to CBO numbers in its Budget and Economic Outlook published this month, the cost of Operation Iraqi Freedom was $709 billion for military and related activities, including training of Iraqi forces and diplomatic operations.

The projected cost of the stimulus, which passed in February 2009, and is expected to have a shelf life of two years, was $862 billion.

The U.S. deficit for fiscal year 2010 is expected to be $1.3 trillion, according to CBO. That compares to a 2007 deficit of $160.7 billion and a 2008 deficit of $458.6 billion, according to data provided by the U.S. Office of Management and Budget.

In 2007 and 2008, the deficit as a percentage of gross domestic product was 1.2 percent and 3.2 percent, respectively.

"Relative to the size of the economy, this year's deficit is expected to be the second largest shortfall in the past 65 years; 9.1 percent of gross domestic product (GDP), exceeded only by last year's deficit of 9.9 percent of GDP," CBO wrote.

The CBO figures show that the most expensive year of the Iraq war
was in 2008, the year when the surge proposed by Gen. David Petraeus and approved by President Bush was in full swing and the turning point in the war. The total cost of Iraq operations in 2008 was $140 billion. In 2007, the cost of Iraq operations was $124 billion.

According to an analysis by the American Thinker's Randall Hoven, the cost of the Iraq war from 2003-2008 -- when Bush was in office -- was $20 billion less than the cost of education spending and less than a quarter of the cost of Medicare spending during that same period.

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