S&P 500 Performance during the past 7 years

[Lasher]

Now that another year has ended let's take a look back at how the stock market has done. Based on the closing price on the last trading day of each year, here is the annualized performance of the S&P 500 index:



Despite squandering the Clinton surplus and running up massive debt, the stock market has performed much worse during the past 7 years than it has during any other presidency, going back to Carter. And many believe this year will be worse. Supply-siders have certainly had their chance with the current administration's trickle-down-theory-on-steroids economic policies. These numbers are in sharp contrast with Junior's assertions that the tax cuts worked and the stock market is booming.

Maybe it's time for us all to conclude that supply-side economics have never been anything more than an attempt to find moral justification in taking from the poor and giving to the rich.

[muriel_volestrangler]

1. But it's the rich who mainly benefit from stock market growth

The poor get nothing from it; the middle class typically have something invested in it as a pension, but their salaries are a more important factor; it's the rich for whom the stock market is their main source of wealth income.

A look at the lower and middle segments of take-home wages would be more meaningful for showing how Bush has screwed things for the average person.

[indepat]

4. When the rapidly declining value of the dollar is thrown in to this mix,

we get a true dose of reality as to how much we are royally screwed by juniors stewardship.

[sendero]

5. That was true...

.. 20 years ago before 401Ks were popular and people had defined benefit retirement plans. Now, most folks have defined contribution plans that are heavily invested in stocks.

Right now, I see stocks as one of the main ways the rich (Wall Street)siphons cash from the middle class.

[muriel_volestrangler]

6. If they're selling the stocks to the middle class at inflated prices, perhaps

then the rich could be getting cash from the middle class. But that would be indicated by an overpriced stockmarket, not a sluggish one.

But it's still true that the poor have nothing in the stock market at all.

[sendero]

7. Define "overpriced"..

... overpriced means more than its worth, not necessarily a high number.

The stock markets are in fact overpriced right now, in terms of their ability to pay returns on monies invested. IMHO :)

[Lasher]

10. This is but one of many economic indicators I could have cited.

S&P 500 performance, which is often cited as one of them, lends its self to a clear comparison of modern presidents' performance. While it is true a more comprehensive analysis could be offered by citing other factors such as real income by class, that was beyond the scope of my humble contribution.

I have been thinking I might develop a similar analysis of other indicators though. Junior fails in almost every one of them.

[Nimrod2005]

2. Thanks for this

[Lasher]

8. OK

I'll most likely do midyear and EOY updates. This is one of many indicators that prove Junior is the worst president ever.

[screembloodymurder]

3. It's economics for the creationist.

Pure bullshit in support of greed. The "law of supply and demand" now there's a law that makes sense.

[Lasher]

9. You never hear about demand side economics.

I sometimes tune into Larry Kudlow just to laugh at him turning himself out, trying to make it look like the tax cuts for rich people worked and all we need is more of the same. As one of the most well known supply-siders of all, he will never admit he's been wrong all his life - even in the face of stark evidence such as this.

[Narkos]

11. What do you say to the market fundies...

who happen to be many of my wingnut relatives, when they repeat the mantra over and over that the stock market is doing great? And not only that, but that it shows how well the economy is doing. I wish I had a quick link (non blog/somewhat official) that would show them that the stock market is only 1 indicator of how the economy is doing, and that we're in for some hard times.