Stock markets, trade and poverty reduction. Part 2 of the series.

Just the facts…

With the election just days away, voters – whether business leaders, employees or investors – need to make decisions based on facts, not myths. The data shows that the US economy consistently performs better under Democratic leadership. From stock market growth to trade policies and poverty reduction, Democratic administrations have historically promoted a stronger and more sustainable economy. Let’s break down the key trends of the past 25 years. I’ve provided links from bipartisan sources to back up the facts.

Myth 1: Stock markets and corporate profits perform better under Republicans

WRONG. Stock markets and corporate profits thrive under Democratic leadership.

Despite fears that pro-labour policies are stifling growth, the numbers tell a different story. Under President Obama, the S&P 500 rose 181%, driven by a steady recovery from the Great Recession. In comparison, the S&P 500 fell 37% during George W. Bush’s presidency, peaking in 2008 crisis.

Over 25 years, Democratic administrations have outperformed Republicans in stock market performance, with the S&P 500 averaging an annual gain of 10-15% under Democrats, compared to 6-10% under Republicans. Corporate profits similarly thrived, growing at an annual rate of 12.8% under Democrats, compared to just 1.8% under republicans. This performance reflects how democratic policies, emphasizing investment in infrastructure, education and workforce development, support long-term profitability.

Myth 2: Trade wars protect American jobs and Strengthening the economy

WRONG. Trade wars destabilize markets, while democratic trade policies create sustainable growth.

Trade wars initiated under the Trump administration have disrupted global supply chains, raised production costs and slowed US economic growth by 0.3-0.5 percentage points annual. Trump’s tariffs on imports, especially from China, it overturnedraising consumer prices and hurting industries such as agriculture and manufacturing. In fact, Trump’s proposals, including blanket tariffs and deporting workers, are seen as potential inflationaccording to the Wall Street Journal.

Instead, Democratic-led trade policies—like Obama’s Trans-Pacific Partnership (TPP)—reduce trade barriers, stabilize markets, and promote labor and environmental standards. These policy support both large and small businesses by expanding market access and reducing production costs.

The only time there are declines in economic growth are under Republican leadership.

Myth 3: Democratic policies increase poverty

WRONG. Democratic policies reduce poverty and promote economic mobility.

Contrary to popular belief, poverty rates decline more steadily under democratic administrations. For example, during Obama’s tenure, the poverty rate fell from 13.2% to 12.7% by 2016, despite Britain’s rebound. Recession. Programs like the Affordable Care Act (ACA) have expanded access to health care, easing financial burdens for millions of families.

The pattern shown in US poverty rates over the past 25 years suggests that poverty tends to rise during Republican administrations (pink), often coinciding with recessions or economic disruptions, while it falls under Democratic leadership (blue) as economic recovery and social policies come into force. For example, under George W. Bush, poverty peaked after the 2008 financial crisis, while Barack Obama’s administration brought it down through targeted programs. Similarly, the poverty rate fell under Joe Biden as the economy recovered from the COVID-19 pandemic. Democratic administrations have historically implemented policies that promote economic stability and reduce inequality, benefiting lower-income households.

Democratic investments in food assistance, child tax credits, and job training increase purchasing power and reduce inequality. These POLICIES it contributes to workforce stability and productivity, ensuring businesses benefit from a healthier and more engaged workforce.

We are better off today than we were under Trump

Today’s economic indicators tell a clear story:

• Unemployment stands at 3.8%, well below the peak of 14.7% during the COVID-19 crisis under Trump.
• Inflation is stabilizing, easing pressure on both businesses and consumers.
• Consumer confidence and spending are recovering, boosting the economic pace.
• Worker productivity is rising and corporate profits remain solid, signaling a competitive and thriving economy.

Bottom line: what’s good for workers is good for business

The facts prove it – workers, businesses and the economy do better under Democratic leadership. Policies that prioritize health care, education and fair wages boost workforce productivity and create the conditions for sustainable business growth. Businesses, in turn, benefit from increased consumer demand and stable market environments.

These elections present a critical choice: continue on a path of sustainable economic progress or risk reversing these gains. Democratic policies promote long-term stability and growth, benefiting both workers and businesses.

When you vote, choose policies that support both people and profits. Vote for sustainable growth. Vote for a future where companies succeed because workers thrive. Vote for progress.