Friday, January 22, 2010

Just for fun: W's economy

Selected household income percentiles (20%-ile, 40%-ile, 60%-ile, 80%-ile, 95%-ile) + GDP/household, 1969-2008.

A few observations: till 1989 (the start of Bush I's presidency), GDP/household (the dashed orange line) tracked the 80%-ile of household income pretty closely.
Under Bush I & W, GDP/household increased more than 80%-ile of household incomes.
We can quantify this:

Nixon/Ford: GDP/household up 0.22% annually; 80%-ile household up 0.73% annually; 95%-ile household up 0.89% annually.
- The upper 20% of households in fact did better than the overall economy.

Carter: GDP/household up 0.97% annually; 80%-ile household up 0.77% annually; 95%-ile household up 1.14% annually.
- This pattern seems "typical".

Reagan: GDP/household up 1.89% annually; 80%-ile household up 1.54% annually; 95%-ile household up 2.18% annually.

Bush I: GDP/household up 0.74% annually; 80%-ile household down 0.36% annually; 95%-ile household down 0.15% annually.
- The economy grew, but 95% of us LOST.
... so, who got the $$$? Fewer than 5% of households!
We'll see this pattern repeated under W.

Clinton: GDP/household up 2.48% annually; 80%-ile household up 2.01% annually; 95%-ile household up 2.51% annually.
- Under Clinton, at least some of us 'normal' folks again experienced "a rising tide lifts all boats".

W: GDP/household up 0.90% annually; 80%-ile household down 0.25% annually; 95%-ile household down 0.11% annually.
- Like father, like son. Again: GDP growth was not shared by 95% of households!
... Again: who got the benefit of this rising tide?
... Must be fewer than the wealthiest 5% of households!

Republican policies over W's term were good for some few, but disastrous for the rest of us!

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