It seems that consumers, small businesses and corporate CEOs are in a better mood since Trump took office as well.
It’s an open subject for debate: Is this newfound sense of optimism due more to hopes about Trump’s pro-business, pro-growth agenda? Or is it the residual effects of policies from President Obama and low interest rates from the Federal Reserve?
Technically speaking, the President should not have an impact on the economy, it is not their job to “improve” the economy yet the reality is that since FDR’s presidency, the government has taken a more active role in the economic affairs of the country.
So much for the Constitution.
Public perception on a President’s impact is often distorted. President Bush was blamed for a housing crisis that President Carter initiated and President Clinton made more prominent through policy intervention and enforcement. President Bush certainly had mud on his hands and made the situation worse by doubling down, but the perception that it was his fault entirely or even mostly his fault is simply inaccurate.
The slow recovery after the 2008 housing crisis is squarely placed on President Obama’s shoulders yet his policies were a logical extension of the Bush Administration’s actions soon after the housing crisis.
Get the picture?
Better questions to ask- Is the current optimism, regardless of cause, justified or are we just riding another bubble? Is the credit (or blame) we give to the President and the Federal Reserve evidence of a dangerous mindset that assumes powers neither truly has or should have?