Despite overwhelming evidence to the contrary, the myth persists that Republicans are the part of the economy. Now, Moody Analytics has come out with a report showing that a Democratic sweep of the election would be the best for economic growth and jobs.
The analysis included four possible scenarios: a Democratic sweep; a Republican sweep;one where the Democrats win the presidency, hold the House, but fail to win the Senate; and one scenario where everything remains as it is now. The conclusion:
"The economic outlook is strongest under the scenario in which Biden and the Democrats sweep Congress and fully adopt their economic agenda," wrote Moody's Analytics chief economist Mark Zandi, who provided economic analysis for the late Sen. John McCain's (R-Ariz.) 2008 presidential campaign, and economist Bernard Yaros.
The reason for this is that, with a Democratic Congress, Biden would spend on infrastructure, education, and the safety net, which would provide jobs and GDP growth, while taxing the rich to pay for it would have little economic impact.
Ironically, while Republicans spent 4 decades selling tax cuts for the rich on their ridiculous theory of “supply side economics”, the analysis concludes that:
"Longer-term growth under Biden's policies is also stronger because on net they expand the supply side of the economy-the quantity and quality of labor and capital needed to produce goods and services," they added.
To summarize, a Democratic-led government is best for the economy both short term and long term.
Oh, and then there’s immigration. Trump’s entire campaign and presidency has its roots in anti-immigrant xenophobia. The analysis says that Democratic policies on immigration would lead to more growth. Trump’s policies, not so much:
They also called Trump's proposed immigration cuts "a significant impediment to longer-term economic growth, as it slows growth in both the labor force, which is problematic given prospects for declines in the native working-age population, and labor productivity."
The reasons stated in this report are exactly the reasons the economy always does better under Democrats. Democrats invest. Republicans cut. It’s that simple
Democrats really should be driving this message home. Voters still are under the illusion that Trump would be better than Biden at handling the economy. But when we compare job growth over the last 3 years of Obama’s term to the first 3 years of Trump’s, Obama’s worst year was better than Trump’s best year. Democrats outperformed Trump even before we take COVID-19 into account. And now, analysis shows that we should expect the same in the future.
