There seems to be a mis- perception among speakers at the Democratic National Convention about how the U.S. economy works. There seems to be a mis- perception among speakers at the Democratic National Convention about how the U.S. economy works. Liberals, according to news stories, have taken center stage at the convention, and liberals don't like free markets because they don't understand them and can't control them. But we doubt that any of them really believe the president of the United States is responsible for the state of the economy. But political leadership does not sell cars or create jobs.
Entrepreneurs create jobs and wealth.
Productivity from the efforts of management and labor creates growth. If any single person in politics plays a significant role in the economy, it is the chairman of the Federal Reserve. This unleashed a flood of investment and growth. In 1990, after a huge tax increase, following several smaller ones, the economy dipped into a mild recession. But that ended nearly two years before Clinton took office.