The Filibuster Effect

http://www.futureofcapitalism.com/2009/09/the-filibuster-effect

How much is that 60th senator worth? Eric Singer of Congressional Effect Management reports in his latest "wealth destruction monitor" that

Since the end of 1934, the stock market, as measured by the S&P 500 Index, has gone up in price 1.13% during the 14 years there was no ability on the part of a minority to filibuster new legislation. Through the end of 2008, in the 60 years where the minority could successfully filibuster, the market appreciated 7.60%....Unchecked government expands more rapidly than in normal times; it expands at the expense of the private sector, and that can cause lower stock prices.

by Editor  |  Sep 17, 2009 at 4:29 pm receive the latest by email: subscribe to the free futureofcapitalism.com mailing list