Republicans love to claim that their tax policies lead to better economic growth. The facts, however, do not back up that claim.
I call the first fact the Great Partisan Growth Divide. Simply put, the United States economy has grown faster, on average, under Democratic presidents than under Republicans.
The stark contrast between the whiz-bang Clinton years and the dreary Bush years is familiar because it is so recent. But while it is extreme, it is not atypical. Data for the whole period from 1948 to 2007, during which Republicans occupied the White House for 34 years and Democrats for 26, show average annual growth of real gross national product of 1.64 percent per capita under Republican presidents versus 2.78 percent under Democrats.
That 1.14-point difference, if maintained for eight years, would yield 9.33 percent more income per person, which is a lot more than almost anyone can expect from a tax cut.
The next time someone tells you that we need to cut taxes for the wealthy in order to grow the economy, you can explain to them that the opposite is true.
Also, income inequality is greater under Republican presidents than under Democrats. So, the economy grows faster, and the poor are better off under Democrats.
