The Great Depression began with a stock market
bubble in 1929 and continued through 1939. Inflation was above 15% from 1917 to
1920. That would have raised asset prices for the rich and lowered living
standards for the poor.
The Industrial Revolution (1850-1900) had added
industry to the US agricultural economy. Companies were family owned and funded
to grow by retained profits. There were few public companies.
President Theodore Roosevelt (1901-1909) promoted
conservation and federal lands and disliked industry. He targeted the largest
industries to break them up.
President Woodrow Wilson (1913-1921) passed the US
Income Tax, Inheritance Tax and the Federal Reserve Bank abandoning the free
market economy for a managed economy. This produced massive inflation. The US
entered World War I in 1917. Wilson promoted the League of Nations in1920, but
it failed to prevent World War II in 1939.
President Warren Harding (1921-1923) Nominal GDP was
$59 billion. Cities were chlorinating drinking water and building sanitary
sewers and roads.
President Calvin Coolidge (1923-1929) had presided
over a stock market boom in 1928 with a 37.88% increase in the S&P 500.
President Herbert Hoover struggled to recover from
1929 to 1932, but it got worse and ended with an average loss of -25.65%.
Hoover cut federal spending when stimulus was needed. The Fed failed to
increase the money supply to off-set the damage. US Nominal GDP dropped from
$105 billion in 1929 to $57 billion in 1933.
President Franklin Roosevelt took office in 1933 as
the stock market recovered on its own with a gain of 46.59% in 1933. He
launched government funded public works programs to create jobs, but was
dealing with drought from 1930 to 1936.
US Nominal GDP began to rise from $67 billion in
1934 to $93 billion in 1939. The onset of World War II in 1939 took GDP to $103
billion in 1940 rising to $224 billion in 1944. Inflation reached 11% in 1942.
Roosevelt’s 11 year average S&P was 15.45% largely due to war production.
President
Harry Truman served from 1945 to 1952. He ended World War II with the Atom Bomb
and rebuilt Europe and Japan. The League of Nations became the UN in 1945 and
the Cold War began. China became Communist in 1949. Truman fought the Korean
War 1950 to 1952. The US was the worlds’ manufacturing country. Inflation
reached 14% in 1947. Truman’s S&P 500 average gain was 8.94%.
President
Dwight Eisenhower served from 1953 to 1961. Eisenhower ended the Korean War in
1953. US manufacturing grew and the US enjoyed peace and prosperity.
Eisenhower’s S&P 500 average gain was 7.93%.
President
John Kennedy served from 1961 to 1963 when he was assassinated. The US
continued to prosper. Kennedy’s S&P
500 average gain was 10.07%.
President
Lyndon Johnson served from 1963 to 1968. Johnson expanded the Vietnam War from
1963 to 1968, passed Welfare, Medicare, Medicaid and the Civil Rights Act.
Inflation began to rise in 1968. Race
riots and War protests were common in the US.
Johnson refused to serve another term. Johnson’s S&P average gain
was 7.36%.
President
Richard Nixon served from 1969 to 1974. Inflation continued to rise and hit 11%
in 1974. Nixon ended the Gold Standard, began trade with China, ended the
Vietnam War in 1974 and resigned due to the Watergate scandal. Nixon’s S&P
average gain was 10.38%.
President
Gerald Ford served from 1975 to 1977. Inflation averaged 7.5%. Ford’s S&P average gain was 25.35%.
President
Jimmy Carter served from 1977 to 1980. The price of cars doubled in 1978. Inflation rose to 13.6% in 1980. Carter’s S&P average gain was 7.02%.
President
Ronald Reagan served from 1981 to 1988. Inflation fell from 10.5% in 1981 to
3.2% in 1983. Reagan won the Cold War and the USSR collapsed in 1989 and
reformed as the Russian Republic in 1991. Reagan cut taxes Reagan’s S&P
average gain was 9.89%.
President
George HW Bush served from 1989 to 1992. Bush signed on the UN Agenda 21 in
1992 to establish a global government based on the global warming hoax. Bush
conducted the Gulf war to rescue Kuwait in 1990. Bush’s S&P average gain was 12.87%.
President
Bill Clinton served from 1993 to 2000. Clinton signed on to NAFTA, implemented
UN Agenda 21 in the US and passed the Community Reinvestment Act of 1993 that
caused the Financial Meltdown in 2008. Clinton’s S&P average gain was
15.87%.
President
George W Bush served from 2001 to 2008. Bush launched ground wars in
Afghanistan and Iraq following the Twin Towers attack in 2001. The National
Debt rose from $5 trillion to $10 trillion. Bush’s S&P average gain was
-2.43%.
President
Barak Obama served from 2009 to 2016. Obama inherited the Financial Meltdown
that dropped the S&P from 1468.36 to 903.25 in 2008. The Federal Reserve
increased the Money Supply by 450% to restore the banks. This restored the
stock market to 1426.19 by 2012. Obama
passed Obamacare in 2009 to double healthcare costs. He signed on to the
Climate Change hoax and UN refugee program to depress household income. Obama
accelerated UN Agenda 21 implementation in the US. The National Debt doubled
from $10 trillion to $20 trillion. Obama’s S&P average gain was 12.44%.
President
Donald Trump serves from 2017 to present. Trump cut the US corporate tax from
35% to 21%, rejected Climate Change as a hoax and cut unnecessary regulations.
He began bi-lateral trade negotiations using Tariffs to restore the
manufacturing jobs lost since 1993. He is re-establishing the US Constitution
(as originally written). The US economy is booming. Trump’s S&P average
gain for 4 years is 11.6%.
S&P 500 Index - Historical Annual Data Year Average
Closing Price Year Open Year High Year Low Year Close Annual % Change
Closing Price Year Open Year High Year Low Year Close Annual % Change
Year Average
Closing Gain
2020 3289.53
3357.75 3.93% Trump
2019 2913.36
3230.78 28.88%
2018 2746.21
2506.85 -6.24%
2017 2449.08 2673.61
19.42%
Ave 2849.55 11.60%
2016 2094.65 2238.83
9.54% Obama
2015 2061.07 2043.94
-0.73%
2014 1931.38 2058.90
11.39%
2013 1643.80 1848.36
29.60%
2012 1379.61 1426.19
13.41%
2011 1267.64 1257.60 0%
2010 1139.97 1257.64
12.87%
2009 948.05 1115.10
23.45%
Ave 1558.27 12.44%
2008 1220.04 903.25
-38.49% Bush II
2007 1477.18 1468.36
3.53%
2006 1310.46 1418.30
13.62%
2005 1207.23 1248.29
3.00%
2004 1130.65 1211.92
8.99%
2003 965.23 1111.92
26.38%
2002 993.93 879.82
-23.37%
2001 1192.57 1148.08
-13.04%
Ave 1187.16 -2.43%
2000 1427.22 1320.28
-10.14% Clinton
1999 1327.33 1469.25
19.53%
1998 1085.50 1229.23
26.67%
1997 873.43 970.43
31.01%
1996 670.49 740.74
20.26%
1995 541.72 615.93
34.11%
1994 460.42 459.27
-1.54%
1993 451.61 466.45 7.06%
Ave 854.72 15.87%
1992 415.75 435.09 4.46% Bush I
1991 376.19 417.09
26.31%
1990 334.63 330.22 -6.56%
1989 323.05 353.40 27.25%
Ave 362.41 12.87%
1988 265.88 277.72 12.40%
Reagan
1987 287.00 247.08 2.06%
1986 236.39 242.17 14.62%
1985 186.83 211.28 26.33%
1984 160.46 167.24 1.40%
1983 160.47 164.93 17.27%
1982 119.71 140.64
14.76%
1981 128.04 122.55 -9.73%
Ave 139.10 9.89%
1980 118.71 135.76 25.77%
Carter
1979 103.00 107.94 12.31%
1978 96.11 96.11 1.06%
1977 98.18 95.10 -11.05%
Ave 52.00 7.02%
1976 102.04
107.46 19.15% Ford
1975 86.18 90.19 31.55%
Ave 94.11 25.35%
1974 82.78 68.56 -29.72%
Nixon
1973 107.44 97.55 -17.37%
1972 109.13 118.05 15.63%
1971 98.32 102.09 10.79%
1970 83.15 92.15 0.10%
1969 97.77 92.06 -11.36%
Ave 82.78 10.38%
1968 98.38 103.86 7.66%
Johnson
1967 91.96 96.47 20.19%
1966 85.16 80.33 -13.09%
1965 88.16 92.43 9.06%
1964 81.37 84.75 12.97%
Ave 89.00 7.36%
1963 69.86 75.02
18.89% Kennedy
1962 62.32 63.10 -11.81%
1961 66.27 71.55 23.13%
Ave 66.15 10.07%
1960 55.85 58.11 -2.97% Eisenhower
1959 57.42 59.89
8.48%
1958 46.20 55.21 38.06%
1957 44.42 39.99 -14.31%
1956 46.64 46.67 2.62%
1955 40.50 45.48 26.40%
1953 24.72 24.81 -6.62%
1952 24.45 26.57 11.78%
Ave 42.53 7.93%
1951 22.32 23.77 16.46% Truman
1950 18.39 20.41 21.78%
1949 15.24 16.67 10.26%
1948 15.51 15.20 -0.65%
1947 15.15 15.30 0.00%
1946 17.07 15.30 -11.87%
1945 15.14 17.36 30.72%
Ave 14.85 8.94%
1944 12.47 13.28 13.80% Roosevelt
1943 11.52 11.67 19.45%
1942 8.67 9.77 12.43%
1941 9.83 8.69 17.86%
1940 11.01 10.58 15.29%
1939 12.05 12.49 -5.45%
1938 11.48 13.21 25.21%
1937 15.41 10.55 -38.59%
1936 15.45 17.18 27.92%
1935 10.58 13.43 41.37%
1934 9.83 9.50 -5.94%
1933 9.04 10.10 46.59%
Ave 12.49 15.45%
1932 6.92 6.89 -15.15% Hoover
1931 13.66 8.12 -47.07%
1930 21.00 15.34 -28.48%
1929 26.19 21.45 -11.91%
Ave 15.94 -25.65%
1928 19.94 24.35 37.88% Coolidge
S&P
500 Stock Index closing
2/14/20 3380.16
1/4/19 2531.94
1/3/18 2713.06
1/3/17 2257.83
1/3/16 2012.66
1/3/15 2020.58
1/3/14 1831.37
1/3/13 1459.37
1/4/12 1277.30
1/3/11 1270.20
2/16/10 1094.87
Over the
past 10 years the S&P 500 tripled from 1094.87 in 2010 to 3380.16 as of
2/14/20 resulting in a 2285.29 gain. The S&P bottom in 2008 was 903.25 that
rose back to 1459.37 on 1/3/13.
US
Nominal Median Household income in December 2019 was $65,666. This is up from $62,138 in 2016.
Comments
From
NAFTA in 1993 to the Trump election in 2016, US companies off-shored
middle-class jobs. The 2008 Meltdown further reduced these jobs and US
Household income shrank. Trump’s jobs restoration of these higher-paying jobs
has just begun and US Household income is growing due to Trump’s lower
corporate tax and elimination of job-killing policies.
Norb
Leahy, Dunwoody GA Tea Party Leader
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