Which Party Is Better for the Economy?

• Position: POLITICAL LANDSCAPE

With the economy struggling and unemployment high due in large part to COVID-19, WalletHub compared the economic performance of the U.S. under both Democratic and Republican control to answer an important question: since 1950, which party is better for the economy?

In order to do so, WalletHub examined the years during which each party was in control of either the presidency, legislature, or both according to 13 key indicators of economic performance. They range from "real gross domestic product growth" to "annual poverty rate change" to "change in annual national debt as a percentage of GDP."

Below are highlights from the study:

* Overall, the economy has performed best under the combination of a Democratic presidency and Republican Congress.

* In the past 70 years, real GDP has grown fastest under Democratic control of both the Executive and Legislative branches of government, at an average of 4.22% per year, and most slowly under a Democratic presidency and divided Congress, at an average of 2.04% per year.

* The stock market has performed best under a Democratic presidency and Republican Congress, with the S&P 500 producing an average annual return of 16.22%, and worst under a Republican presidency and Democratic Congress, with an average annual return of 4.51%.

* The annual unemployment...