Well… looks like I’ll have to do this again. For any of you who didn’t notice before, I made a post debunking a picture regarding Republicans and their spending habits as well as one regarding Obama’s accumulated debt. It’s a shame that these thoughtless pictures won’t stop. Let’s, once again, analyze these numbers.
From Clinton’s inauguration date to the end of his presidency, the Dow Jones Industrial Average rose from 3,256.81 to 10,587.59. The percentage increase under Clinton was pretty much what the picture suggests: it’s about 225%. This boom occurred chiefly because of loose monetary policy in the late 80’s (and later in the mid 90’s) by Alan Greenspan; it was the perfect breeding ground for the NASDAQ bubble (which carried the Dow up with it). Though when the bust came, the NASDAQ felt most of it, as the Dow only dropped to about 8,000.
Now if we truly want to credit someone with that boom, it should be to Alan Greenspan: the man in charge of the money. Not Bill Clinton. But hey, I’ll play it both sides. Let’s go ahead and credit Mr. Clinton with that 1990’s boom. Wouldn’t he then be the reason the economy busts?
This is where we bring in George W. Bush. Here comes in Mr. Bush to a still-booming economy that is on the brink. In the first year of Bush’s presidency, the burst of the Dot-com Bubble came, and we experienced the Terrorist Attacks on 9/11.
So, let me tackle 9/11 real quick. 9/11’s effects on the stock-market was what is known as a “real shock”. There was no real fiscal reasoning behind its drop there; it was just investors becoming afraid about more attacks and their money. No one can pin this blame on George W. Bush. At all. Al-Qaeda and its friends hated the United States since Gerald Ford. It actually goes even further than that. Then Clinton instigated Bin-Laden in 1993 with the Gulf War as well! So the actions of multiple presidents brought attacks on our soil, and it happened to be within Bush’s very first year.
Now people really love to say “Obama inherited Bush’s recession!” It’s true. But it works both ways. Bush inherited Clinton’s busting economy. So this in combination with the real shock of 9/11 sunk the economy hard. How can one fault the blame to him for that? You can’t. The economy was near it’s then-all-time-high when Bush entered office, and that’s tough to recoup after someone else’s economy busts.
The graph is right on it’s numbers here, too. From inauguration to the very end, the market changed from 10,587.59 to 8,077.56. Which is a 23% change (but in the negative). Like I said I’ll play it both ways: the massive boom under Bush (and the inevitable crash) must be blamed on Alan Greenspan. His monetary policy allowed for the Housing Bubble and the bust that followed. Bush doesn’t deserve that blame so much. In fact, many blame Clinton for the Housing Bubble (because of his signing of the Gramm-Leach-Bliley Act). But I don’t really fault him for that.
Moving on, let’s say it was Bush’s fault. Bush tried to recover from Clinton’s bust. And he did (if you credit him with it). But the issue here is that President Obama entered office at the low of the stock-market in 2009. So of course it’s going to be easier to recoup 56% of an economy on the brink of Depression. Obama just regained what was already lost not on his time.
My summation is this: The numbers on this are correct. But are we really going to ignore the actions taken in each man’s presidency and the timing of stock changes? Clinton’s economy busted at the start of Bush, and Bush’s economy felt 9/11 on top of that! Then, very unlike Bush, Obama comes in at the very low of the recession. Of course it’s going to look like Bush is the “baddie”! And, by my view, the “recovery” isn’t Obama’s doing, it’s Bernanke’s. And it’s just going to deliver us another bust very soon. As always.
In summation: I debunk fallacies, regardless of whether the proposed argument is for or against “my side”; I will always show respect and empathy for your ideas, because I understand that a lot of thought and reason went into them; I generally expect the same amount of humility from other people, and not necessarily to me, but to all others; I will argue on behalf of libertarianism when I find a good debate/idea to post.
So there you have it, I hope you all enjoy your stay! Ask box is open to all for any questions, comments, insults, debates, etc.