Marketplace Morning Report Reminder
As the 2012 Election slouches towards November, I thought I’d put up a quick note from this morning’s Marketplace Morning Report (an essential part of every TRC morning, and one I recommend you add to start your day).
Jeremy Hobson and Josh Brown, of Fusion Analytics, were discussing yesterday’s NH Primary, and Mitt Romney’s warning that President Obama is leading the United States into European-style Socialism (adorable). So Hobson asked if the folks on Wall Street agree, and think that Romney would be better for the economy.
Said Brown: No. Brown called it the ‘dirty little secret’ of American politics: the president, no matter who it is, cannot improve the economy. He can make it worse, but there is actually nothing he can do to make it better. (When Marketplace puts up this transcript, I’ll post the quote, but this paraphrase is pretty close).
I’ve made this argument before, and still agree. The President is capable of ruining the economy, but that doesn’t mean the President can do much to repair it. There’s no reason to think that had McCain won in 08, we’d be better off, or to think that if Obama loses in12, we’ll be better off. Because, frankly, politics doesn’t improve the economy.
**UPDATE: Marketplace has the piece up on their website, and here is Josh Brown:
Here’s the dirty little secret: the truth is, they could make things much, much worse, but there’s very little they can do to improve things. So typically, when you look at who’s in the White House, who controls Congress, it’s all a myth — there is no correlation. No one is any better than anyone else between Democrats and Republicans.
As a matter of fact, if you would have said back in 2008, I can’t believe they’re going to elect Obama — he’s anti-business, he’s anti-capitalism; in the meantime, the S&P 500 is up over 50 percent since January of 2009 when Obama was sworn into office.
So I think the president’s impact on the economy is not quite what politicians would like it to be.