Debunking the Republican Economy Myth

A long-held belief by many Americans is that Republicans are strong on Economic issues and make America more prosperous. The belief goes something like this: Republicans believe in small government, fewer regulations and lower taxes, which promotes economic growth. There's also a belief that Republicans are better on government spending, and reducing unnecessary waste.

Dubious Policy

The above-points are debatable. For example, lax regulation in the financial industry and easy money from the Fed helped create the Great Recession of the late 2000's– not exactly a great economic talking point. More recently, bank liquidity scares revived the same concerns around the deregulation that Republicans favor so much. It seems like they take every opportunity to make risky bets for increased profits, with no concern about the consequences.

On a similar note, the 2017 Trump tax cuts led to a larger budget deficit than if they had not been enacted. It's estimated that $1-2 trillion was added to the national debt as a result of those cuts. In other words, despite the loud proclamations from Republicans that the cuts would pay for themself, they did exactly the opposite.

History and Facts

To underscore the inefficacy of Republican economic leadership, look at their track record over the last 70 years. All but one recession since 1953 began under a Republican administration. Multiple recessions under the Reagan and Bush administrations were ultimately offset under the Clinton administration, which led the longest period of economic growth and stability in U.S. history, and was the last administration to have multiple years of balanced budgets with surpluses.

Under the subsequent Bush administration, more tax cuts, increased war spending and lax financial regulation led to the worst recession in history. Obama led us out of that period with another prolonged period of economic growth which ultimately ended under Trump.

Playing with Fire

Since 2010, an increasingly unhinged Republican congress is saying out loud that they're more than happy to shut down the government and risk defaulting on our debt in order to get their way, and it's not even clear what they want, except to sow chaos and confusion. As a result of this dysfunction, the U.S. credit rating has been downgraded and the world is losing confidence in our ability to lead or even function as a democracy.

Some world leaders have even gone so far as to propose stripping the U.S. Dollar of its world reserve currency status. Republican greed and dysfunction is putting our very standard of living at risk, and they have no idea that they're playing with fire. Our ability to impose economic sanctions on countries like Russia, North Korea and Iran relies on the Dollar's status as the reserve currency, so not only do Republicans put our standard of living at risk, but they also create significant threats to our national security.

A Steady Hand

There's no guarantee that Democratic leadership can fix all of this, but one thing is clear: a steady hand at the helm improves our prospects. If we act with reason and accountability, we're more likely to succeed economically. The same approach improves our standing on the World Stage, reducing the likelihood that allies will turn away from U.S. leadership. At the current moment, that steady hand comes from Democrats. The next time you hear someone say they vote Republican for economic reasons, tell them to review facts and history which prove otherwise.