Originally published at Bear Beats. Please leave any comments there.
There’s only one thing I hate more than being wrong…and that’s admitting being wrong.
A couple of weeks ago, the U.S. Bureau of Economic Analysis released the latest Gross Domestic Product (GDP) findings, confirming what all the doomsayers have been saying for the past nine months. The 4th Quarter GDP findings for 2008 is that the GDP decreased (was down) 5.8 points AND the 1st Quarter GDP findings for 2009 is that the GDP was down 3.5 points. Thus, by definition, the GDP being down for two or more consecutive quarters, indicates a recession. This is the first recession in U.S. history in 51 years (1957Q4 to 1958Q1) .
Generally, there are two trains of thought regarding under which president what economic boost/recession occurs so, here they are: Republicans believe that what they do while in office affects the future economy; thus, republicans explain away any bad economic terribleness that occurs during their term and take credit for anything good afterwards. While Democrats believe that what they do in office affects the present economy, thus taking credit for anything good during and ignoring anything bad before and after. However, I am of a third, what happened in the past influences the future, but only for the number of years a president is in office in quarters after he leaves office, e.i, President Franklin Roosevelt served 12 years, thus, he’s responsible for 12 quarters after his exodus from office .
Here’s what that breaks down to, from 1953-today, the best economic presidents in order are:
1. President Jimmy Carter (D) >> 186.8
2. President Ronald Reagan (R) >> 126
3. President Gerald Ford (R) >> 116.6
4. President Lyndon Johnson (D) >> 102
5. President Dwight Eisenhower (R) >> 88.4
6. President Richard Nixon (R) >> 88.3
7. President Bill Clinton (D) >> 78.4
8. President George H. W. Bush (R) >> 78
9. President George W. Bush (R) >> 62.1
10. President John Kennedy (D) >> 27.1
Now, an argument might be made that it’s not fair that Kennedy is last since he was assassinated; based upon my assumption, he only affected four quarters. Yet, that argument is valid still! So, dropping him from the list, President George W. Bush is the WORST PRESIDENT EVER, at least economically (I’m not going into the political, social, and moral crap, ’cause all that’s subjective), and still, there’s 7 quarters that we’ve yet to consider so if the economy keeps going craptastic, thank President Bush.
Historically, Republicans had the most positive influence nearly doubling that of Democrats but there’ve been 50% more of ‘em too, so normalizing for that, Republicans only performed 10% better, or 2% better per president, but then, Carter nearly 50% better than the next best…a Republican.
Anyway, all of this is to say…recessions suck…and I hate being wrong…you’d think by being married I’d be used it by now, eh?

