As we approach the end of his Presidency it's good to post a few specific topics to highlight Obama’s performance during his Presidency. Let's start with the stock market – an institution that represents a factor in consumer spending through credits. This is to remind us what things were in the early fall of 2008 when the stock market and credit markets crashed following the housing market crash - all three bearing heavily on the biggest engine of growth - the American consumer.
When Barack Obama took office the United States was still in the grips of the most severe economic downturn since the Great Depression. The New York Stock Exchange Dow Jones industrial average had already declined 34 percent over the previous 12 months — and it was still dropping.
Of all Presidencies since 1900, Obama has had the 3rd best performance stock investors. Market performance was better only under President Calvin Coolidge, a Republican, in the Roaring ’20s; and Bill Clinton, a Democrat, from 1993 to early 2001, years that encompassed the tech bubble. Under Obama it rose 11.8 %, on an annualized basis, without dividends versus 25.5 % for President Coolidge and 15.9 % for President Clinton. It was better than all other, including Republicans such as Ronald Reagan (11.3 %); Dwight D. Eisenhower (10.4 %); and George H. W. Bush (9.7 %) – pro-business Presidents whose Presidencies coincided with strong stock markets.
Not too that since 1900, the market has performed better under Democrats, with a 6.7 percent annualized gain for the Dow, compared with a 3 percent gain under Republicans.
President Obama had good timing though as the market and the economy were already in an f’ed up state just before he took office. Another factor is that the Federal Reserve (not controlled directly by the President) started its easy money policy – Quantitative Easing and low interest rates. Remember though that Obama did reappoint Ben Bernanke as Fed chairman in August 2009. In October 2013 he Janet L. Yellen as Mr. Bernanke’s successor. Under both, the Fed has held interest rates very low, which is helping to buoy the stock market and may help Hillary in the November elections.
Obama-bashers please feel free to flame. 