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Presidential Humans?

12/09/2021

The silly little truth that makes economists snicker is this:  Presidents get too much credit when the economy is strong and too much blame when the economy is weak.

The American economy is too big to change directions quickly and too tied into the world economy to change greatly.  Of course, the stock market is somewhat different but not entirely different, but it basically reflects the economy.

A meaningless new report shows Joe Biden’s first year in office is producing the best first-year stock market returns in history.  Clinton was second, Obama was third, and Trump was fourth.

My Republican friends will argue that Democratic presidents produce the best first-year stock market returns only because the economy was fixed by the previous Republican president.  My Democratic friends argue that demand can be increased more rapidly with deficit spending than with tax cuts.

It’s human nature to claim credit and shift blame . . . guess that makes presidents human?

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