The economy itself is growing steadily at around 2.5 percent, and has been in an expasion since Clinton took office. Interest rates on 10-year loans are at their lowest since the Johnson administration, and small business formation is at a record high. But the economy moves in cycles, and many experts fear that a recession lurks just around the corner. Will he deserve it. In truth, our elected officials have less control over the economy than they claim.
Tax cuts have the same double edge.
The Fed is the primary monitor of the nation's economy, and its chief inflation fighter. Pehaps the best the federal government can do to dampen economic cycles is to keep its books in order. And for most voters, the only true economic indicator is their own pocketbook. But as we become a nation of investors, trusting not our government to provide, more and more people are turning to the business pages and putting their paychecks into mutual funds. Both Republicans and Democrats promise to make the economy work for you, the voter.