Thank George and friends for the value explosion: 0.6% per year!!!

As I write this, the Dow is at 11,075. Earlier today, it dipped into the 10,000s.

The day before a Republican President took office in 2001, with a Republican majority in both houses of Congress, the Dow had closed for the week at 10,588. So seven-and-one-half years later, the dominant index of major equities has grown 487 points. That’s an annual growth rate of roughly zero-point-six per cent (0.6%) per year.

And a real annual decline of about 2.5% per year.

So, speaking roughly but righteously, Mr. Wealthy’s annual income at the top marginal tax rate of $1,000,000 in 2001 has declined in real terms to about $800,000. “Yeah, but who cares? At least with the Republican tax cuts I’m only paying 36% on most of it, instead of 39.6%. That means I’m only paying $288,000 in taxes on it, rather than $396,000. Ha!!”

“Yes, but you had left over from that $604,000 in 2001, and now you only have $512,000,” you say.

“It’s the principle of it,” says Mr. Wealthy. “Everyone knows the Republican Party is the party that’s good for business.”