You are correct in pointing out that money markets offered better returns than the S&P500. I applaud you for pointing out that the health of economy is a whole 'nother story. But, I'd like to point out that the rate of inflation during the same period was even higher than the return on money market accounts. So, you were still underwater on your investment. I can't offer any specifics on the rate of inflation during those periods. However I do recall, being a chronic saver back then, that it was a sad reality that the rate of inflation was always higher than the compounded rate of interest in your saving account.

My point is, that if you add inflation into the picture, the inflation adjusted returns per presidential administration might come out very different. I've little doubt that the administrations of Clinton and Bush the Elder would appear much greater in that scenario, given the benign rate of inflation during their administrations. I've no bad feelings towards "Jimmuh" (as we playfully called him then), but those Carter years were awful years, economically speaking. The "misery index" (the rate of inflation combined with the rate of employment), which Carter touted during his election campaign was even higher when he left office. But, that definately underscores your point about the disconnect between stock returns and the economic realities of American life.

Elbert:

Regarding Wealth, from yesterdays IBD, "....a bit more than one quarter of all wealth created in America since our founding was created in the last seven years".  That is, $15.3 trillion of $55.97 trillion. Wealth destroyer? Oh, and the S&P doesn't show that Carter era money market interest returns were better than stock market returns. I purchased my home in the HBW Bush era, with a standard FHA mortgage at 11.5%! S&P Stock market returns are no measure of economic health or economic picture, not in any way. Nor do they indicate how an administration affected the economy. Oh, and whoever wins the pres election, I hope they do well for all americans, as their post-Carter predecssors have. (That was a high interest rate, but the house was a steal.)