« Freakonomics Radio

65. It’s Not the President, Stupid

2012-03-07 | 🔗
Isn’t it time to admit that the U.S. economy doesn’t have a commander in chief?
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This is for economics, radio, on marketplace. Here's the host of marketplace. Tyrants Duff saw no problem, but a freak and on a radio that moment in the broadcast. Every couple of weeks where we talk to Stephen under the co author of the books and the blog of the same name, it is the hidden side of everything, Deborah how're, you I've been worse, you have no can do now, Nor do I know you know why you do know either because you produce those behind me. None of the word as data. That is a big part of you know how I feel about the presidency. That's where I was go and gives generally you think it's you think it's overrated right! I do. I believe that the office of the present, the United States, that it just matters a lot less than most people. Think now I will say when I make this argument. I get hate mail from both sides of the Isle, so conservatives will accuse me of covering, for President Obama and liberals accuse me
kind of pre empting criticism of some future republican nominee. Are I well? I mean the main is leader the free world, so to speak. So what's the actual truths lewd had? Well, look personally, I have no horse in any race. I dislike both political parties about equally, But here's the thing we're heading into a presidential campaign now than is likely to focus on the economy, and rightly so, and I'm I tell you and your listeners, that of all the areas in which the president's influence is overrated. The economy is probably number one. So I'd like a here to listen to Austin ghouls, be whose a former chairman of President Obama's Council of economic lasers, I think the world vest too much power, certainly in the present, probably in Washington in general, for its influence on the economy. Us
most of the economy has nothing to do with the government. I love the way dogs by the way, like the entire I, but wait. Listen you around in the ninety two election european attention. Yes, I was ok. Sentient beings. Your point in its the economy. Stupid. That's why the guy on the fantastic campaign, slogan, you get to brag about how you will raise employment and lower gas prices, as if Kai there's some man People set of button ovum offers a thing I get to push once: you're elected you, no more jobs, button and so on, but is asked Ingoldsby points out the president's ability to actually change the shape and the direction and the velocity of the macro economy, its extreme limited, let me go back then to the to the actual politicians who say otherwise. You had Clinton and I've got Mitt Romney former CEO, a business guy goes out every stump speech. He makes any says. I know what to do in the account
I've been there. I ve created jobs. I fired people blah blah blah, you don't you know by now. I buy that he believes it to be true. A lot of people have believed that be true in the past, this kind of common idea of the last ten fifteen years as president as CEO, but it doesn't work that way. We set up to not work that way when it comes to unilateral decision making, there's no comparison between what a ceo can do and what the president can try to get done here is another way of looking at some action, they'd, ok, which is what we like Tarzan that I was there waitin for the dead in the two thousand for Bush carry presidential election. You may recall that there was a little bit of a snafu concerning the. Early exit polls- oh yeah, that's a mean, Carry was the winner for like what three somethin hours for our that's exactly right, it was announced it was carry, but it turned out to be Bush, and the economist, just in wolfish, took advantage of that mix up
were a study that he did. Two thousand full was a social scientist dream. What you have is four hours, I'm a Democrats also full beautiful hours in which we basically had a carry presidency, and it was random. So what wulfric did ass? He looked at how the stock markets reacted to first in the news of a carry presidency, and then the new turn out to be correct. News of a Bush presidency, you seen fact that stocks fell a little bit during a four hours of the carry presidency, and then they rose a bit when it became the push presidency. How the difference between a new democratic president and a new republic in president in the space of four hours was actually pretty small, is about one and a half per cent now this is just a sliver of evidence, but it does suggest that the people who pay the most attention to the working economy, which is to say Wall Street Investors, Moura
the care all that much about which president they got, and most economists will tell you that the president's role when it comes to the economy is much closer to let's say at cheerleader than a ceo. What have you never to see above all around me out? There go, and I can do nothing you know you all. They ve got their self interest, but just once I love a presidential candidate to get up there in the stump and say my fellow Americans, I can't connect we must now I've got a little bit of influence, but mostly it does what it does if it gets worse. My watch you shouldn't let me end if it happens to get better. You probably should give me too much credit either. Ladies and gentlemen, the next president of the United States, governor here you know, I'm free to be irradiated it nobody. Washington wants a touch me exactly right for economic start job is. The website will be in a couple of weeks, thanks guys,
Transcript generated on 2021-03-16.