Tuesday, September 2, 2008

Income Growth / Equality by Presidential Party

And now for a post that is sure to anger 50% of the U.S. population...

NY Times: Is History Siding With Obama’s Economic Plan?

When Democrats were in the White House, lower-income families experienced slightly faster income growth than higher-income families — which means that incomes were equalizing...

The table also shows that families at the 95th percentile fared almost as well under Republican presidents as under Democrats (1.90 percent growth per year, versus 2.12 percent), giving them little stake, economically, in election outcomes. But the stakes were enormous for the less well-to-do. Families at the 20th percentile fared much worse under Republicans than under Democrats (0.43 percent versus 2.64 percent). Eight years of growth at an annual rate of 0.43 percent increases a family’s income by just 3.5 percent, while eight years of growth at 2.64 percent raises it by 23.2 percent.
Hat Tip: Naked Capitalism