Is History Siding With Obama’s Economic Plan?

REI · #1 09-01-2008, 08:31 AM

Before someone gets all hot and bothered by the subject line, it is a direct quote from a business article in the NY Times. Read the article and then form a view.

There are some comments at the end that apply directly to RE investors who are successful.

Here are some excerpts that surprised me.

Quote:

CLEARLY, there are major differences between the economic policies of Senators Barack Obama and John McCain. Mr. McCain wants more tax cuts for the rich; Mr. Obama wants tax cuts for the poor and middle class.

Such differences are hardly surprising. Democrats and Republicans have followed different approaches to the economy for as long as there have been Democrats and Republicans. Longer, actually. Remember Hamilton versus Jefferson?

Skipping a bit and then we find.

Quote:

I call the first fact the Great Partisan Growth Divide. Simply put, the United States economy has grown faster, on average, under Democratic presidents than under Republicans.

The second big historical fact, which might be called the Great Partisan Inequality Divide, is the focus of Professor Bartels’s work.

It is well known that income inequality in the United States has been on the rise for about 30 years now — an unsettling development that has finally touched the public consciousness. Over the entire 60-year period, income inequality trended substantially upward under Republican presidents but slightly downward under Democrats, thus accounting for the widening income gaps over all.

In conclusion the article more or less ends with the following:

Quote:

The two Great Partisan Divides combine to suggest that, if history is a guide, an Obama victory in November would lead to faster economic growth with less inequality, while a McCain victory would lead to slower economic growth with more inequality.

Now for the RE angle.

The article and the book break out people into income levels. It should be noted that the top 5% of the people in the US, the rich folks, includes anyone making $180K a year or more. For many successful RE investors that means you are in the upper crust or are part of the top earners. Here is a quote that applies to the top folks:

Quote:

The table also shows that families at the 95th percentile fared almost as well under Republican presidents as under Democrats (1.90 percent growth per year, versus 2.12 percent), giving them little stake, economically, in election outcomes.

Economically it will not matter who you vote for as you already have the means through RE to be largely immune from the outcome.

Now get out there and find those deals.

Is History Siding With Obama’s Economic Plan?

theAdviserMe · #2 09-02-2008, 09:01 AM

I think, on my humble opinion, that Obama is more in touch with the problems and sufferings of the common man, compared to his Republican opponent. I will vote for Obama this November. And this is my honest opinion.

Propertymanager · #3 09-04-2008, 07:34 PM

The New York Times is nothing but a shill for the far left. Anything they say is suspect at best and an outright fabrication at worst.

The TRUTH is that Barack Osama Obama is a pure socialist. He is for big government; high taxes; killing unborn babies; gun control; government control of business; and socialization of many of our industries (including big oil, pharma, etc). In my opinion, he is the biggest threat to our capitalist society that we have ever faced.

Mike

southern sicilian · #4 09-05-2008, 07:27 AM

Quote:

Originally Posted by Propertymanager

The New York Times is nothing but a shill for the far left. Anything they say is suspect at best and an outright fabrication at worst.

The TRUTH is that Barack Osama Obama is a pure socialist. He is for big government; high taxes; killing unborn babies; gun control; government control of business; and socialization of many of our industries (including big oil, pharma, etc). In my opinion, he is the biggest threat to our capitalist society that we have ever faced.

Mike

the sad fact is that of the two running, we will probably be better off as a country with the socialist in charge instead of going republican (ignoring the problem, divert funds from one class to the next, stir up trouble and make someone else clean it up, etc.).
i hate to say that but in these times the truth smells like yesterday's commode

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