Andsopeoplecaneventuallygetthissortofpictureintheirmindsof a presidentas a kindofeconomicwizardbehind a curtainthat's pullinglevers.
Andwe'rejustallonthereceivingendofthis, whentherealityissomethinglikepresidentsarebasically a rouletteballspinningaround a wheel, desperatelyhopingthattheirpresidencylandsonblack.
Sohowmuchinfluencedo U.S. presidentsactuallyhaveontheeconomy?
Therehasbeen a tendencyonthepartofoursocietyledbypoliticianstoexaggeratetheamountofpowerthatthepresidentwields.
Andwedohave a politicallyindependentFederalReserve, whichthedataandhistoryshowismoreeffectivewhenthosewhoareinofficehavenorealcontroloverwhatthecentralbankdoes.
However, presidentscanalsoget a chancetoappointtheleadersofagenciesliketheFederalReserveortheFederalTradeCommission, whichstillneedsconfirmationbytheSenate.
So a presidentdoesnothavethepowertopropose a programtoattachfederalspendingtoitandthenenactthatspendingbecauseconstitutionally, theCongressmustapprovethespending.
If a presidentiswellservedbyessentiallytheiradvisers, theywillknowwhereexecutiveactioncanapplyorwheretheythinkthattheycanessentiallymake a movewithouttheapprovalofCongress.
Butthosearereallyspecialsituations.
Presidentsalsoplay a largeroleinnegotiatingtradedealsandimposingsanctionsortariffsthatcaninfluencetheeconomymoredirectly.
Intheory, presidentscouldhave a prettybigeffectweretheytodosomethingprettyextreme.
Andsousingtariffs, forexample, ifenormous, youknow, 100 percenttariffswereimposedonanyimportscomingfromparticularcountries, thatcouldmatter a lot.
I mean, consumerspurchasetheseproducts.
Businessesinthe U.S. relyontheseproductsasinputsfortheirownbusinesses.
Inourpolarizedera, a questionthatsometimescomesupismightconsumersactuallychangetheirspendinghabitsortheirtheirhabitsforthefuturebasedonwhoisrunning?
Right.
Soifsomeonebelievesthat a Republicanpresidentwouldbebetterfor a business, willtheyholdoffoninvestmentorsomethinguntilthatpresidentcomesintoofficebecausetheyfeelmoresecureabouttheeconomy?