“I wondered for a year or so why presidents mattered? I read many of the comments on that Kevin Drum entry. Toward the end, Spencer was especially insightful for me. What I took away, plus my own thoughts, are:
The President has available the tools to make a difference. The president is responsible for the development and implementation of the budget. He has influence over fiscal and social policy. Furthermore, he appoints the lead people to governing boards and agencies, who in turn implement the budget and policies. So the president certainly can influence the economy.
Why the Difference in Results? Democratic presidents emphasize Keynesian type policies, whereas Republican presidents pursue supply-side policies. Both strategies use deficits to give select groups extra income, which is expected to result in capital spending and a stronger economy. The strategies differ in the selection of the groups: Keynesians give to consumers, while supply-siders give to the wealthy and investor class. So far Keynesian type policy has had a good track record of economic and job growth, whereas supply-side policies haven’t.”
O debate continua, e ee mesmo interessante (leiam o blog do Rodrik)…