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
- Any president faces several constraints in managing the economy
- 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
- Demography another factor – older economies can grow slower; very economies can have low productivity
- Monetary policy is controlled by the Fed – interest rates
- And even fiscal policy – taxes and public spending – Congress has a say
- So several headwinds against a president being in charge
- I’m MW
Mary: And I’m Mary Walden for the North Carolina Cooperative Extension Service.