Presidential Economic Powers

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            The gross domestic product plays a major role in the rise or fall of presidential reputations. The state of the economy in the United States acts as determining factor in the reelection of presidents, consequently, economic success shapes historical economic memories shape the success or failure of a certain presidency. Though the reality is presidents have far less control over the economy, all they can do is influence, therefore, most of the presidential economic performances dependents on world economic cycle. For instance, according to Price (2017) President Trump has limited influence over the pertinent factors that influence the economy. However, it is right to acknowledge that the presidency also matters in the economy.

            Firstly, the president appoints the chair the Federal Reserve. The Federal Reserve is tasked with keeping the economy of the United States on a stable path, through the implementation of various elements of monetary policy. Thus, through the Federal Reserve, the president is able to influence financial market regulations. For instance, in times of crisis, the Federal Reserve formulates creative responses that are funneled to address the struggling sectors of the economy. Even so, it is quite impossible to clearly determine the relationship between presidential actions and the eventual economic outcomes. Nevertheless, proponents argue that the immediate and broader set of government actions - by Obama, complemented by the actions of the Federal Reserve enabled the United States to avert a full-blown depression.

            Secondly, the president has an influence on fiscal policy, often a necessary element characterizing the reaction to recessions. In normal economic periods, the unregulated monetary policy can result in fluctuations in an economy, however, monetary policy alone cannot steer the economy. As a result, it is essential to incorporate fiscal policy that combines tax and spending activities in the economy. The President influences fiscal policy with the aid of cooperation from Congress. Fiscal policy entails expenditure activities, for instance, upgrading the infrastructure as well as improvements on social insurance. Most notably, most of the Republican government have advocated for high tax cuts on the wealthiest society.

            Besides, the presidency also determines how GDP is subdivided between income classes as well as the protection guaranteed to workers in terms of income loss when they are retrenched from work (Bryne, 2017). As...