Do Republicans Tend To Help Rich People More Than the Middle Class?
Written by
Nicole Spector
Edited by
Molly Sullivan
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We may be called the United States, but when it comes to politics, we are completely disjointed. You’ve got about one-half of the spectrum voting Democrat, roughly the other half voting Republican, and then there are those who either don’t vote or vote for a third-party candidate.
What about the middle class? How do they vote? Well, they’re divided unto themselves. Many will vote Democrat. Many will vote Republican. From a financial standpoint, which party is better positioned to best meet the needs of the middle class? Do Republicans tend to help rich people more than they help the middle class or the other way around?
GOBankingRates spoke with David Brooks, CEPA, CIS, CHRS, president and founder at Retire SMART, LLC, to get an understanding of whether Republicans favor higher earners over middle-class folks.
Wealth Assets May Grow More Under Democrats — But the Middle Class May Not Recognize It
Though wealthy people often financially favor Republicans for their support of tax cuts among higher earners and big corporations, there’s evidence that invested wealth performs better under Democratic leadership.
“The rich do much better when Democrats are in the White House,” Brooks said. “According to the last 92 years of S&P records, the S&P index has returned an average of 7.85% when a Republican was president versus 14.93% during Democratic administrations.”
The thing is, middle-class people don’t necessarily measure their financial well-being against the performance of investments.
“Many don’t invest in assets like the stock market or real estate,” Brooks said. “They simply ask themselves, ‘Am I doing better?'”
Inflation is key to how you answer this question for yourself.
“Today, folks living paycheck-to-paycheck tend to answer ‘No’ as they feel the pain of prices generally 20% higher than four years ago,” Brooks said.
Let’s Think About Who Would Best Get the Middle Class Through a Recession
Brooks believes the U.S. will experience a recession regardless of who next becomes president. So the question, as he puts it, is: “What approach is more likely to lead us out of it and create a healthy economic environment for the middle class?”
It looks like the answer is Democrats.
“Democrats generally advocate for social welfare programs, higher taxes on the wealthy, and regulations aimed at reducing income inequality,” Brooks said. “Their campaign policies often focus on expanding healthcare, education and the social safety net to support low-income individuals.”
But wait. It also looks like the answer is Republicans.
“Republicans typically emphasize tax cuts, reduced government regulations, less government spending and more free-market solutions,” Brooks said. “They argue that a rising tide raises all boats, that helping businesses and the wealthy can lead to job creation and economic growth, which they believe will eventually benefit everyone.”
Republican leaders and Democrat leaders have so little in common, but when things get rocky with the economy, they’re both looking to get back to smooth sailing. They just approach the problem(s) differently, and some middle-class people may feel more financially secure under the helm of a Democratic administration, while others may feel safer under Republican leadership.
The Wealthy Prosper Either Way
The middle class may or may not fare better under a Republican presidency. The wealthy? Brooks said they’ll benefit either way — under Harris or Trump.
“In America, history and economic data show that the wealthy generally do well regardless of which party is in power,” Brooks said.
Does Either Political Party Truly Serve the Middle Class?
Maybe the more astute question to ask is not, “Do Republicans tend to help rich people more than they help the middle class?” but “Does either political party really, truly help the middle class?”
Brooks suggested the answer is no.
“As a registered Independent, I believe both parties have failed the American people in numerous ways,” Brooks said. “Republicans do not always practice the rhetoric, policies and approaches they preach. Democrats are more faithful practitioners of what they preach, but I don’t think theirs is the right formula, especially for the middle class.”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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