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Presidents Have Less Power over the Economy Than You Might Think
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Presidents Have Less Power over the Economy Than You Might Think

Neil Irwin
The New York Times, 2017
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Editorial Rating

7

Qualities

  • For Beginners

Recommendation

“It’s the economy, stupid!” As strategic leader of Bill Clinton’s first presidential campaign, James Carville coined this notorious slogan, which contains some truth about presidential politics that continues to hold: Americans care deeply about the economy and will likely choose the candidate who – they think – will create more jobs and prosperity. But how much power over the economy does a president actually have? Forces beyond the president’s control largely determine the economic trajectory during any four-year period, argues economics writer Neil Irwin in The New York Times. getAbstract recommends Irwin’s editorial to anybody interested in moving beyond political rhetoric and looking at the factors that actually make the economy tick.

Take-Aways

  • Although the public judges US presidents based on how well the economy performed during their years in office, factors beyond the president’s control largely determine the state of the economy during any four-year period.
  • Demographic trends, such as women entering the workforce after World War II, have a much stronger influence on long-term economic growth than any top-down economic policy.
  • The president influences monetary policy only indirectly by appointing people to the Federal Reserve, an independent government agency.

About the Author

Neil Irwin is a senior economics correspondent for The New York Times. He is the author of The Alchemists: Three Central Bankers and a World on Fire.

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