Today the United States Department of Commerce, Bureau of Economic Analysis issued its Gross Domestic Product, 2nd Quarter 2020 (Advance Estimate) and Annual Update that showed that
“Real gross domestic product (GDP) decreased at an annual rate of 32.9 percent in the second quarter of 2020, according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter of 2020, real GDP decreased 5.0 percent.” (here)
They go on to explain the reason for this dramatic drop:
The decline in second quarter GDP reflected the response to COVID-19, as "stay-at-home" orders issued in March and April were partially lifted in some areas of the country in May and June, and government pandemic assistance payments were distributed to households and businesses. This led to rapid shifts in activity, as businesses and schools continued remote work and consumers and businesses canceled, restricted, or redirected their spending. The full economic effects of the COVID-19 pandemic cannot be quantified in the GDP estimate for the second quarter of 2020 because the impacts are generally embedded in source data and cannot be separately identified.(here)
Later in the day, NPR reported on the BEA report and included the chart shown at the top of this post.
That chart, along with the NPR report purports to demonstrate that the recent 32.9% drop in the nation’s GDP was the worst drop in GDP since Eisenhower took office (although the article accompanying the chart maintains it was the worst drop since records have been kept.)
While others, I am sure, will comment on the BEA report and the staggering drop in the Nation’s GDP under this President, the chart, at least to me, may also show something else. Comparing Presidential administrations to recessions by political party, the nearest I can make out from the chart, of the 11 recessions identified therein since Eisenhower assumed office in 1953 at least 8 clearly occurred during Republican administrations, one during a Democratic Administration and two during the year a Democratic administration transferred power to a Republican (1953 and perhaps 2001).
To assist in making the comparison and the conclusions I came to here is a list of the presidents and their term in office since 1953:
1953-61 Eisenhower
1961-63 Kennedy
1963-69 Johnson
1969-77 Nixon-Ford
1977-81 Carter
1981-89 Reagan
1989-93 Bush
1993-2001 Clinton
2001-09 Bush Jr.
2009-17 Obama
2017-20 Trump.
If this information is correct, it appears clear that the Republican Party, their chosen Presidents, and the conservative economic doctrines upon with they base their actions seem to me to have been woefully incapable of effectively managing the nation’s economy.
This observation may appear to be nothing new for most of us who post on Daily Kos, nevertheless, it is worth repeating every chance we get.