How much control does the president really have over the economy?

Question

Well? I know that the economy was doing well when Bill Clinton was in office, but now it seems the economy is heading into a bit of a slump. How much control and influence does the president really have over all of this? Is the economy really just a cycle that the president doesn't influence?

Answer 1

Not nearly as much as they claim to have when they promise they can make the economy better if you will only elect them or pass their policies. However things like a balanced budget, trade policy and making investments in infrastructure matter. Most economist credit the building of the interstate highway system with improving the economy. Really bad policies hurt, but usually presidents are constrained by congress, and interest groups to act only in a narrow range .The damping of business cycles is usually left up to the FED.
This annotated graph gives you an overview of the economy, events and presidents.
http://www.visualizingeconomics.com/2006/08/15/average-income-in-the-united-states/

Answer 2

My economics professor said that its all part of the business cycle. When Clinton came into office, the economy was in an expansionary period. When Bush came into office, the economy started to go into a contraction. I do not think that a president can stop contractions, but they can dampen them.