This next graph shows the two graphs superimposed upon each other. They have been scaled to actual size.
It is consistently argued, that cutting taxes on the rich fuels investment.
As the theory goes, this investment is then used by companies to grow and create production and jobs. As you can see cutting taxes too much on the wealthy does nothing of the sort. Production in terms of GDP and jobs have been anemic as well in relation to the 90s (graphs are in the works).
For now, here are graphs of how the Dow has behaved since Bush took office vs. how it behaved during Clinton's time in office.
On Jan. 22 2001, the markets' first day with Bush in office, the Dow started off at
10587.59 and rose 32 points to 10,620.53.
Bush Tax cuts for the wealthy were signed into law in June of 2001.
9/11 certainly had an impact on the markets but as the graph shows, I was as lenient as possible by only giving Bush the positive investor bounce by picking the lowest point the Dow ever reached through the aftermath for the start point of his investment growth. Neither the immediate dive in investment or the prompt bounce afterwards is entirely indicative of Bush's fiscal plan. Really the aftermath of 9/11, regarding investment, is quite complicated so for argument's sake I marked it to give Bush the largest possible growth period possible even though part of the bounce is attributed to the upswing of investor knee jerk reactions. We should all just be happy the downturn ended there and didn't get worse.
Sources:
Finance.yahoo.com
http://money.cnn.com/2001/01/22/markets/stock_breaker/
http://www.the-privateer.com/chart/dow-long.html
http://archives.cnn.com/2001/ALLPOLITICS/06/07/bush.taxes/
http://www.usatoday.com/news/washington/2006-05-17-bush-tax-cuts_x.htm
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