Presidential Credit

Presidential Credit
Name
Institution
Course
Presidential Credit
The Government plays a more significant role in handling the economy. The Federal government has been seeking to influence the economy ever since the great despair. There are several macroeconomic conditions and government strategies that upset the economy and its association with individuals. They are; price stability, economic growth, a favorable balance of payment, low unemployment, support of the vital industrial sectors and minimizing diseconomies. Both the fiscal policy and the government can increase expenditure or reduce taxes to stimulate the economy.
Any president deserves credit for an economic boom or recession. That is, the president and Congress formulate federal fiscal policy. The government considers spending in maintaining the system and that it should place first spending priorities on national defense, physical and human resources. The government collects payroll and income taxes and must have the revenue to spend money and raise taxes from its citizens. It should also be aware of budget deficits. According to Coleman, (2016), the government helps in encouraging the development of various economic activities such as public ownership of industries, tax incentives, cash subsidies and loan guarantees. Lastly, the federal government issues and enforces rules that private sectors have to follow.
Both the president and the chairman of the Federal Reserve Board influence the economy. For any economic performance, the president always takes the blame.

The congress commends budget which commands the expenditure and tax rates of the US government. Public opinions impacts elected leaders, economic policy same as political parties where each party has a particular philosophy on economic policy to follow. However, monetarists believe the federal government should play a reduced part in economy and claims that the Federal Reserve should be distillate on modifying the supply of money regarding the general proportion of economic growth.
Reference
Coleman, W. D. (2016). Financial services, globalization and domestic policy change. Springer.