Presidential Elections and their Effect on the US Economy
The presidential elections in the United States of America are held every four years. This year everybody is already anticipating the November Presidential elections. It is clear that elections around the globe raise a lot of tensions with regard to their on the economic scene and, certainly, the United States of America is not an exception. America is built on strong principles of democracy with the party system dominated by the Democrats and the Republicans. Additionally, the economy of the United States of America depends on what political movement is in power. The paper will show the relationship between the Presidential elections in the United States of America and the US economy.
The Relationship between the US Presidential Elections and the US Economy
When a new president takes over office in the United States of America, there are expectations depending on whether the president is a Democrat or a Republican. The affiliation of a president to a political movement reflects the kind of policies that the people of the United States of America can anticipate. The economy does not just change instantly but is dependent on the policies and taxation structure that the government chooses to put in place (Ansolabehere & Snyder, 2002). Therefore, investors and other economic analysts look for the following indicators in determining whether the economic state will improve or degenerate in the United States of America.
Support of International Policies
The elected United States president plays a key role in either building the US economy or ruining it by adhering to the economic policies of the state and other foreign policies. The manner in which the US government works with its neighbors determines the way in which it will conduct business internationally. The United States of America is the world’s largest producer of several products including electronics, phones, and computers, so it needs a proper relation with its foreign partners to widen its market for the sake of the promotion of it products. A president may choose to embrace free trade or protectionism. Currently, for example, the United States of America cherishes free trade but at the same time has a protectionism policy which is geared towards protecting local products while at the same time improving on exports (Campbell, 2008, p. 54). Democrats like Barrack Obama and Bill Clinton have shown commitment towards promotion of the ideals of the United States in the foreign market, which ended up boosting the US economy. Republicans, on the other hand, have had a rough time in terms of creating good international relations for business purposes. Therefore, the international policy supported by an incumbent president determines the success of the United States economy (Campbell, 2008, p. 55). Good international policies build a good economy and improve trade, while bad international policies ruin the economy and lead to other states deviating from the United Sates products. An elected president plays a role in the formulation of international policies.
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There is a close relation between the rate of unemployment and economic development in a country. In every election, each presidential candidate is always faced with the task of telling the people what kind of measures they will put in place to boost the economy of the United States of America through the creation of jobs. The US economic development can not be boosted when the majority of American citizens are unemployed. Currently the rate of unemployment in the United States of America is below five percent which is quite commendable but more efforts have to be put in place to maintain zero tolerance for unemployment. For example, Donald Trump who is the most popular Republican presidential candidate is campaigning on the grounds that there is no president who has assisted the people with job creation. Trump boast his record of job creation and believes that as a president he will eradicate joblessness in America. Hillary Clinton on the other side has also maintained her push for the presidency on the grounds that she would advocate for the creation of small businesses as a way of wiping out joblessness in America. The factor that would determine whether America will reduce its current unemployment rate therefore lies with the incumbent president. A president elect plays a key role in building the United States economy through job creation. A policy geared towards reduction of jobs by a president leads to a poor economy while a policy aimed at job creation boosts economic growth. It means that a government should aim at regulating industries and financial institutions but be careful not to overregulate because it may lead to the reduction of job opportunities (Galston, 2010, p. 20). In America, President Reagan has for a very long time been rated as the best American economist but this record has been broken by President Obama who has reduced the unemployment rate to 6 % from the Great Depression as compared to Reagan who was struggling with a rate of 7.1% after the recession in 1980 (Galston, 2010, p. 12). President Obama has therefore played a very crucial role in building the US economy. Interestingly, President Bush is rated amongst the poorest presidents regarding job creation.
The Relation between the Government and the Private Sector
The private sector has a big role to play in the growth of the United States economy. The growth, however, can only be realized in the policies that the government passes aimed at creating a relation between it and the sector. The government by its very nature is very powerful and can regulate the private sector. An incumbent president bears the role of ensuring that there is a good and sustainable relationship between the government and the private sector. This includes building of partnerships between itself and the private sector with a view of giving the private sector a chance to participate in the activities of the government. A good relationship or partnership will enhance the economic growth in the United States of America while a poor relationship leads to a poor economy. The choice depends of the incumbent president. The United States is capitalistic in nature which means that there must be a good balance to ensure that the private sector does not feel undermined.
Besides being elected a president of the United States of America, an incumbent president bears the responsibility of ensuring that they create a good relation with the members of the congress. Both the Senate and the House of Representatives play a key role in economic growth through approval of laws aimed at implementing the policies of the government. A president without proper political influence would not be able to create a good economy because all his policies will be rejected by the House of Representatives (Kinder, Adams, & Gronke, 1989). A political influence means that the government must lead by following the majority of the people. It should not appear as if the government is undermining other arms of the government. An incumbent president bears the responsibility of ensuring that they promote economic growth through wooing the support of the majority of the members or ruin the economy by working with the administration members only.
Proper Exercise of its Fiscal Responsibility
The economy of a country depends on how a government manages it. A good government is one that comes up with ways of generating money to support its budget rather than relying on debts (Polsby, Wildavsky, Schier, & Hopkins, 2008, p. 56). A president who relies on borrowing money to support the infrastructure crashes the economy and is on the way of leading the government to Bankruptcy. On the other hand, a president who comes up with creative means of making money assists a country in growing its economy. Therefore, budget management is one of the key challenges that an incumbent president must engage with to build a strong economy.
While people of the United States of America associate themselves with various political blocks, they all seek economic development and job creation from the government. An incumbent president has many responsibilities as the manner in which they handle the economy will determine whether they will be reelected. An elected leader needs to become people conscious by creating a good rapport with both the private sector and the members of the congress. A good international policy, proper regulations, budget management, creating jobs and a conducive environment for the development of the people go a long way in ensuring economic growth. The choice of a president, therefore, has a great impact on the economy of a country.