*by Kevin Slater, Lead Advisor, CEO, CFP*

It is a presidential election year, and we are hearing many claims from candidates on how well the economy would do under their leadership, as well as accusations of how it would fare under their opponent.

Warning: this month’s chart may not match your expectations.

May I have the (fact) check please?

Presidents Don’t Own the Economy’s Playbook

In August, we looked at how the S&P 500 performed during different administrations; this month, we are looking at the overall economic performance during those same years.

Presidents have a lot less impact on the overall economy than they would have you believe. Often, they tout some sort of jobs or economic initiative, but those are a drop in the bucket of the overall economy.

How often are they “responsible” for a recession? In every case (under Republicans or Democrats), the contributing factors leading up to a recession are well beyond their control. Could any of them have single-handedly staved off the 1970s energy crisis, the 2000s dot-com bust, the great financial crisis, or prevented COVID-19? No.

There are far more actors involved, some with arguably more influence on the economy than the president. From the Federal Reserve to entrepreneurs, from consumers to corporations, and from homeowners to Congress--there are many, many hands contributing to the health of the US economy.

The president does have an important and influential role in our country and the world. Thoughtfully cast your vote this November, but know that economic control is more complex than political promises.