Summary: The economy performs much better during Democratic presidential administrations than during Republican ones.
Key findings
-
Since 1949, there has been a Democratic advantage in the average performance of key macroeconomic indicators measuring economic health, including:
- Gross Domestic Product (GDP) growth
- Job growth
- Unemployment rate
- Growth in inflation-adjusted wages
- Growth of market-based incomes per capita
- Inflation
- Interest rates
-
This Democratic advantage is across the board in all variables we measure but strongest in private-sector outcomes—notably, business investment, job growth, and the growth of market-based incomes.
-
Household income growth (adjusted for inflation) was faster on average and far more equal during Democratic administrations, and the Democratic advantage shows up for every group.
Why this matters
We suspect that the simple facts on economic performance during Democratic and Republican administrations aren’t well known. Providing accurate economic information at a time of rampant misinformation supports an informed citizenry.
