NC State Ag Economist Dr. Mike Walden – “Economic Power of the President”


Mary:    I’m Mary Walden with economist MW welcoming you to the economic perspective.  Today’s program looks at the economic power of the President.  Mike, whenever a new president takes office, there seems to be an expectation the person will almost single-handedly fix our economic ills.  I think we are now experiencing this with President Trump.   Is this a realistic standard for any president?

Mike:  Summary Answer

  1. Any president faces several constraints in managing the economy
  2. One is the business cycle – the irregular ups and downs in the economy including growth and recessionary periods – some say determined by inventory and investment cycles
  3. Demography another factor – older economies can grow slower; very economies can have low productivity
  4. Monetary policy is controlled by the Fed – interest rates
  5. And even fiscal policy – taxes and public spending – Congress has a say
  6. So several headwinds against a president being in charge
  7. I’m MW

Mary:  And I’m Mary Walden for the North Carolina Cooperative Extension Service.