Sat 21 May, 2016 09:35 am
The President of the United States Does Not Control the Economy
A newly updated paper shows that the economy has reliably grown faster under Democratic presidents than Republicans. But what does that really tell us?
For years, Americans have listed the economy as their "most important problem," and it seems like countless elections have swung on candidates' sugar-coated promises to accelerate growth, create jobs, and generally make us all as rich as we've dreamed. But just how much power does the president really have over the economy, in the first place?
In a new update to a fantastically interesting paper, Princeton professors Alan Blinder and Mark Watson offer an answer that says, essentially, they have much less power than you think.
Another of the articles that speaks about the limited role of the president in the economy, despite the fact that they are inordinately credited or blamed for economic events that merely coincide with them.
Correlation does not imply causation.
A president can pressure hard, the Fed and interest rates though. Johnson did. He wanted to keep the war and The Great Society. Carter allowed the Fed to raise the interest rates to control inflation. Unpopular as it was, it set up the "good years" of the Reagan Presidency. Nixon abolished the gold standard which has created the crazy deficits we have today. So yes, the Prez can have alot of control if he chooses to weild it.