The GOP and the Economy
There is a persistent myth in our society that Republican administrations are better for the economy than Democratic ones. The myth originates back in the Reagan years. The economy struggled during the Carter administration. Gas prices spiked, and inflation was high. Under Reagan, things went better.
This fond reminiscing about Reagan overlooks the fact that under George H.W. Bush, the economy struggled, and under his son, George W. Bush, it nearly fell off a cliff. The economy was far stronger under Clinton. After recovering from the Great Recession, the Obama administration oversaw a strong and growing economy, too.
I have heard many people make the argument in the last few months – things were better under Trump. Inflation is at 8.3%, and the stock market is down significantly. The truth is, the economy would be doing just as bad or worse if Trump were still president.
Trump inherited Obama’s strong economy, and the things that Trump and the Republicans did during his time in office hurt the economy more than it helped. The Tax Cuts and Jobs Act benefited only the billionaires. It drove up the deficit, which in times of relative prosperity we should have been paying down, and left us with little in reserve for the next crisis that was around the corner – the COVID-19 pandemic.
Trump’s other main initiative was his trade war with China, an expression of his racism rather than sound conservative economic policy. The American consumer paid the brunt of the tariffs, and China’s retaliatory measures punished American farmers.
But that was then, and this is now. The stock market is down, and prices are up. The GOP will tame inflation just like they did back in the 80’s, right?
Take a look at England right now. Their Conservative government, the Tories, are similar to the Republican party in terms of their economic policies. They are free market capitalists that want low taxes and low regulations, just the sort of legislation Republicans will offer if they take control of Washington after the midterms.
The problem is, the Tories have been in charge for years, and things in England are getting worse and worse. Inflation is 10.1%. Working class people are having to choose between paying their heating bills and buying food. The Tories have no answer for inflation, and neither will the GOP if they come to power.
This round of inflation is mainly caused by supply chain disruptions, due to the lingering pandemic and the war in Ukraine. China has a zero- tolerance policy for COVID 19. They have been shutting factories and whole cities to stop outbreaks. Because, despite the trade war, much of our goods are made in China, this causes random disruptions and price spikes.
Russia had been a major oil producer. NATO countries are now boycotting Russian oil and gas, taking that supply off the market. Since demand has not decreased in any significant way, prices spike for everyone.
Ukraine and Russia are major exporters of grain. Again, NATO sanctions plus Russia’s naval blockade of Ukrainian ports, have caused a steep drop in the worldwide supply of grain. Demand has not decreased, so we are paying more for our bread and cereal.
Inflation is a problem right now for every government on the planet, whether their government is right, left or center. It doesn’t matter if the Democrats hold on to Washington or not. We will be living with inflation either way, just like England and the rest of the world.
The Tories recently instituted a big tax cut, which caused inflation over there to get even worse. They immediately reversed course, fired their Prime Minister and started over. I don’t see the Republicans doing that. I see them lowering taxes, but if inflation worsens, they will only blame Biden, immigrants and trans people. They won’t take any responsibility themselves.
Meanwhile, California, with its high tax, high regulatory policies, is poised to overtake Germany as the fourth strongest economy in the world. In 2012, when Governor Brown first hiked taxes on the wealthy, we were sixth. Democratic policies really can and do lead to strong economies.
This fond reminiscing about Reagan overlooks the fact that under George H.W. Bush, the economy struggled, and under his son, George W. Bush, it nearly fell off a cliff. The economy was far stronger under Clinton. After recovering from the Great Recession, the Obama administration oversaw a strong and growing economy, too.
I have heard many people make the argument in the last few months – things were better under Trump. Inflation is at 8.3%, and the stock market is down significantly. The truth is, the economy would be doing just as bad or worse if Trump were still president.
Trump inherited Obama’s strong economy, and the things that Trump and the Republicans did during his time in office hurt the economy more than it helped. The Tax Cuts and Jobs Act benefited only the billionaires. It drove up the deficit, which in times of relative prosperity we should have been paying down, and left us with little in reserve for the next crisis that was around the corner – the COVID-19 pandemic.
Trump’s other main initiative was his trade war with China, an expression of his racism rather than sound conservative economic policy. The American consumer paid the brunt of the tariffs, and China’s retaliatory measures punished American farmers.
But that was then, and this is now. The stock market is down, and prices are up. The GOP will tame inflation just like they did back in the 80’s, right?
Take a look at England right now. Their Conservative government, the Tories, are similar to the Republican party in terms of their economic policies. They are free market capitalists that want low taxes and low regulations, just the sort of legislation Republicans will offer if they take control of Washington after the midterms.
The problem is, the Tories have been in charge for years, and things in England are getting worse and worse. Inflation is 10.1%. Working class people are having to choose between paying their heating bills and buying food. The Tories have no answer for inflation, and neither will the GOP if they come to power.
This round of inflation is mainly caused by supply chain disruptions, due to the lingering pandemic and the war in Ukraine. China has a zero- tolerance policy for COVID 19. They have been shutting factories and whole cities to stop outbreaks. Because, despite the trade war, much of our goods are made in China, this causes random disruptions and price spikes.
Russia had been a major oil producer. NATO countries are now boycotting Russian oil and gas, taking that supply off the market. Since demand has not decreased in any significant way, prices spike for everyone.
Ukraine and Russia are major exporters of grain. Again, NATO sanctions plus Russia’s naval blockade of Ukrainian ports, have caused a steep drop in the worldwide supply of grain. Demand has not decreased, so we are paying more for our bread and cereal.
Inflation is a problem right now for every government on the planet, whether their government is right, left or center. It doesn’t matter if the Democrats hold on to Washington or not. We will be living with inflation either way, just like England and the rest of the world.
The Tories recently instituted a big tax cut, which caused inflation over there to get even worse. They immediately reversed course, fired their Prime Minister and started over. I don’t see the Republicans doing that. I see them lowering taxes, but if inflation worsens, they will only blame Biden, immigrants and trans people. They won’t take any responsibility themselves.
Meanwhile, California, with its high tax, high regulatory policies, is poised to overtake Germany as the fourth strongest economy in the world. In 2012, when Governor Brown first hiked taxes on the wealthy, we were sixth. Democratic policies really can and do lead to strong economies.
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