I delivered the faculty graduation address last weekend at the University of California, Berkeley’s Goldman School of Public Policy. It’s one of the nation’s best and the reason is its emphasis on rigorous data analysis. Any public policy wonk worth her salt must be focused on data in order to replicate policy successes.
So if we all agree that the nation’s biggest problem is a lack of jobs, we should entrust a respected nonpartisan policy source to examine the economic data, right? The policy analysis should review which laboratory was most successful in creating jobs over a sustained period.
And then we should emulate those policies, right?
If Republican tax cuts create more jobs than Democratic investment, by all means let’s cut taxes! If Republican financial deregulation creates more jobs than Democratic consumer protection, then go ahead, deregulate away!
Which is exactly why the data from Bloomberg’s BGOV Barometer last week will shock many people. Bloomberg studied the past 50 years of U.S. job creation, under Democratic and Republican presidents. The facts: For the near half-century following the Kennedy administration, Democrats created nearly twice as many private-sector jobs as Republicans. Even though Democrats held the presidency for only 23 years compared with 28 years of Republican rule.
Private-sector payrolls increased by 42 million jobs under Democratic administrations, and 24 million under Republican ones. That’s an average of 150,000 new paychecks a month under Democrats and 71,000 per month under Republicans.
Let’s look at some other indicators. How about investing in the stock market? Again, Bloomberg analyzed the data. Investing $1,000 in a hypothetical fund that tracks the Standard & Poor’s 500 index over the past 50 years would have returned $10,920 when Democrats held the White House. The return when Republicans were in power? $2,087.
Annualized returns were 11 percent for the Democrats, 2.7 percent for the Republicans.
What about gross domestic product growth? Through 2008, real GDP grew faster under Democratic administrations — 4.1 percent to 2.7 percent for the GOP.
Income growth? Under Democrats, the real median income over the past 50 years grew at 2.2 percent. Republicans? 0.6 percent.
Number of Americans in poverty? By now you see the pattern. The poverty rate declined under President Lyndon B. Johnson’s Great Society programs from 22.2 percent to 12.6 percent by 1970.