Get Your Blog Up

“This administration is populated by people who’ve spent their careers bashing government. They’re not just small-government conservatives—they’re Grover Norquist, strangle-it-in-the-bathtub conservatives. It’s a cognitive disconnect for them to be able to do something well in an arena that they have so derided and reviled all these years.”

Senator Hillary Clinton

Sunday, December 26, 2004

Republican rewards

One of the best indicators of superior returns on U.S. stocks during President Bush's first term was contributions to Republican candidates.

The 50 companies that most favored Republicans with their political donations delivered an average 44 percent return on investment over the past four years, while the Standard & Poor's 500 Index fell 4.1 percent, assuming dividends were reinvested.

The companies, including railroad Union Pacific Corp., insurer Cigna Corp. and communications equipment maker Harris Corp., push an agenda that in many areas parallels Bush's: pared-down regulations, favorable tax codes and a curb on lawsuits. advertisement

"This is stunning proof of how the biggest political donors don't just buy access, they buy corporate profits," said Kevin Phillips, 64, a political adviser to former President Nixon and author of the 1969 book The Emerging Republican Majority, which predicted the party would come to dominate presidential politics. "It just gives other companies further incentives for comparable donations."

I guess that's one way to look at it. The other would be that Bush has these companies bottom lines in mind when he pushes policy, and not the people who elected him.