How much influence does the President (any President) really have on the economy? The answer according to most experts is "very little". And yet, we voters seem to have this opinion that politics and the economy go hand in hand.
A President's influence comes in two forms: monetary policy and tax policy. Both of these can "push" the economy up or down, but economic momentum tends to go where it wants regardless of who is in office. A president's influence on most specific economic factors, such as the Dow Jones average, is practically non-existent.
If a President has near God like control of the economy as the candidates want us to believe, then why would a President ever want the economy to go bad? The Communists had near total control of the economy, and every communist country has ended up with a economic disaster on their hands.
President actually has some control over, although Congress ultimately has more control over the budget than the President does. Obviously the economy overall has more influence as well. Incomes have been going down the last four years, which means income taxes and consumer taxes collected has gone down. Almost every state in the country has had budget problems . Add to that the fact that spending continues to rise despite the complete lack of inflation, and the result is record setting deficits.Of the four charts, this is the most useful one, even though it should be pointed out
The bottom line is, we should not pick a President based on economic factors, even though that is most likely how most people will vote this year. Pick you candidate base on what economic programs they want to implement, or what social issues they support. The economy is going to do what it is going to do regardless of who is in office.
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