QUOTE (Pathwriter)
What can the President do, by virtue of his office, that would allow him to fundamentally affect the economy domestically?
Sorry for the delayed response, but contrary to popular belief I do have a life outside of KI. Two words... er... Three words... Hookers and blow.
I'm going to start with the first point that you brought up in your previous post; "[the President] is little more than a particularly influential lobbyist in terms of convincing Congress his own party to create legislation which he agrees with."
Not often realized by the American public, due to the understanding of Congress' job as we were taught in school that they "make the laws," the President often writes (or has people write for him, ie. staff members) legislation and has members of Congress introduce it for him; this is an aspect of the Presidency that has evolved over the course of time. As we watch the on going campaign, we are constantly hearing both presidential candidates make promises to cut taxes; not a power the President possesses under the Constitution. In a case such as this, the President would have his budget committee draw up legislation to change the current tax policies to hand to a member of Congress to introduce.
Once the President hands over the bill to Congress, it is out of his hands. Negotiations will take place and parts of the bill will most like be changed in order to appease members outside of the President's political party. This is where the relationship between Congress and the President has become blurred and distorted over time; due to the two-party system Congress has become more or less an arm of the Executive branch (one could argue that it was an inevitable evolution). Due to the President's veto power, it is unlikely that a bill that the President does not approve of will be passed. So, if at any point in time the President's party holds a majority the President (almost) may introduce legislation at will. Additionally, he will be able to take other actions unchecked (this includes, but is not limited to office appointments, make treaties, and approving budgets).
It is important to note that your idea that the President is little more than a lobbyist for Congress is actually close, only it's backwards. There is a direct correlation between the President's party and the party in control of Congress to the President's power. Pretty much only time that Congress exercises its checks against the Executive Branch are when the President's party is not in control of Congress. Essentially, the power of Congress gets handed over to the Executive Branch during times where the President's party in in control of Congress, and Congress becomes impotent when they have anything less than a veto proof majority and are controlled by a party other than the President's.
Take for example the so-called "Do Nothing Congress" of 2006-Present; prior to 2006 Congress was controlled by the Republican party, and during that time the Republicans passed some of their most influential legislation (Tax Cuts, Patriot Act, Partial-Birth Abortion Ban, Authorization for Use of Military Force in Iraq, etc.). After 2006 Republicans Congress lost both Houses of Congress to the Democrats. Naturally during that time the Democrats attempted to enact Democrat-supported legislation; however they lacked a veto proof majority, and as a consequence the majority of legislation introduced during this period was either not passed or vetoed.
During President Bush's time in office he has used his veto power 12 times, which is not a lot for a President of two terms. By comparison, President Bill Clinton, who served as President for two terms, used his veto power 37 times. Of Bush's 12 vetoes, how many would you guess were made after the 2006 elections? I'm pretty sure you got the answer -
all 12. During Clinton's time in office, Congress was controlled by Republicans from 1995 until 2006 - long after he left office. I'm sure it won't surprise you to find out that all 37 of his vetoes took place after 1995.
The connection here is that President's are made powerful or "less powerful" by their respective Congresses. Either a President will be made powerful as a result of unchecked authority by a like-partied Congress or he will prevent Congress from acting by vetoing their legislation. And to bring this full circle if a President is the one who is writing the bills, and he is in control of what passes and what does not, then essentially he (as the head of his party) controls the laws of the land. This would mean that not only does he enforce the laws of the land, he can make them.
QUOTE (Daily Show | Nancy Pelosi | July 28 @ 2008)
Please watch the video. It speaks directly to the argument I am making.http://www.thedailyshow.com/video/index.jh...le=Nancy-Pelosi I'm taking a moment of pause here to point out that we have not yet established how this would allow the President to effect the economy domestically. We are getting to that. Go grab a drink or something.Thus far, we have established one major aspect of Presidential power; his relationship with Congress and how that relationship serves to provide power for the Executive Branch. That relationship, while only one of many different facets of Presidential power, serves his ability to directly effect domestic economic affairs - consequently the national economy. Since we brought it up before in this post, and it is a major issue in most elections, we will use the relationship of the President to Congress to explore federal budget and tax policy and how they have an effect on the national economy.
The President is responsible for preparing the Budget of the United States, although Congress must approve it (we already established why that isn't a problem). The Office of Management and Budget, not coincidentally the largest office within the Cabinet, assists the President in this task. Essentially, these are the people, led by the President and guided by his policies, who control the government projects that our tax dollars go toward supporting. If these individuals decide to, say, cut spending for education, then schools cannot afford to pay teachers and fund programs, and as a result people lose jobs or receive pay cuts. Even though he is not a President, California Governor Schwarzenegger is currently dealing with this very problem - one can easily draw parallels of the state and federal level budget issues.
Inversely, if the President decides to create a new program or issue new contracts jobs are created and money is allotted to those projects. Now of course, that money for new programs has to come from some where - taxes (and to a lesser extent foreign/domestic investment). During the Great Depression FDR's New Deal made great use of government projects and programs in order to stimulate growth by injecting money into the economy, while at the same time upgrading the infrastructure of the country. A more modern example would be the issuing of defense contracts to foreign nations. Of the top 10 contractors in the world, 7 of them are American, and it shouldn't strike anyone as odd that one of our top industries is defense. To reiterate, the President's roll in our federal budget has a major impact on our economy through the creation or removal of jobs and infusion of funds into the domestic economy.
It is only natural that the discussion of the federal budget brings us back to a President's tax polices and how they effect the domestic economy. Almost every President makes promises to change the tax policies of the last party's administration - we see this happening with the current presidential campaign. As we discussed before, it is not up to the President himself to introduce a tax bill to Congress. What often happens is that the Presidential Administration will draft the bill and sponsor it, hand it over to a member of Congress, and if the President's party is the dominant one have it passed. This was the case with the Bush Tax Cuts of 2003. Quite frankly, had the President handed Congress a tax bill written in dog shit they would have likely passed it due to the nature of the Presidential/Congressional party relationship.
It is worth noting here that a few hundred economists stated in a signed letter to Bush that the tax cuts would have an adverse effect on our economy. Here is that signed statement:
Economic growth, though positive, has not been sufficient to generate jobs and prevent unemployment from rising. In fact, there are now more than two million fewer private sector jobs than at the start of the current recession. Overcapacity, corporate scandals, and uncertainty have and will continue to weigh down the economy.
The tax cut plan proposed by President Bush is not the answer to these problems. Regardless of how one views the specifics of the Bush plan, there is wide agreement that its purpose is a permanent change in the tax structure and not the creation of jobs and growth in the near-term. The permanent dividend tax cut, in particular, is not credible as a short-term stimulus. As tax reform, the dividend tax cut is misdirected in that it targets individuals rather than corporations, is overly complex, and could be, but is not, part of a revenue-neutral tax reform effort.
Passing these tax cuts will worsen the long-term budget outlook, adding to the nation’s projected chronic deficits. This fiscal deterioration will reduce the capacity of the government to finance Social Security and Medicare benefits as well as investments in schools, health, infrastructure, and basic research. Moreover, the proposed tax cuts will generate further inequalities in after-tax income.
To be effective, a stimulus plan should rely on immediate but temporary spending and tax measures to expand demand, and it should also rely on immediate but temporary incentives for investment. Such a stimulus plan would spur growth and jobs in the short term without exacerbating the long-term budget outlook.
I cited this particular statement for two reasons: I hate George Bush because he is a shitty President and that it makes note of the effect of these tax cuts on various government programs. As I stated a few paragraphs ago, if you make budget cuts you likely will not be able to fund certain programs. In this particular case, it was stated that the resulting decrease in tax income would make it more likely that we would unable to fund government programs. Again as stated in a previous paragraph, budget cuts as a result of, say extreme tax cuts, would likely result in the loss of government-funded jobs or severe pay cuts.
These job losses and pay cuts eventually can bleed into other areas. Grocery stores are a good example of this direct cause and effect system of job loss/pay cut (or inversely job creation/pay increase), but I will spare you the explanation of remedial economics and take for granted that you can make this link on your own. The point is that the President's policies have direct and indirect impacts on the domestic (and global) economy. This fact is exacerbated by Congress' lack of interest in doing the duty they were assigned under the Constitution - be the voice of the people and provide oversight over the Executive Branch. The last time that was done on a major level was when Clinton was impeached for perjury over the Monica Lewinsky scandal. The last REAL time that was done on a major level was when Nixon was forced to resign due to Congress' assurance that he would lose his impeachment case.
Now, I think I have fairly established that the President has a large scope of influence on the economic affairs of the nation. I didn't even get into his ability to sign treaties and make appointments. I believed that you could make those connections on your own based on the example (that I myself would have used) of NAFTA. Additionally, he has enormous influence through powers such as holding economic meetings with other nations like the G8, or making appointments to governmental economic institutions like the SEC or OMB. If you are curious how those examples would have an effect, or something like the President starting a war would have an effect, on the economy simply apply the principles that I outlined in the first part of this (casual) essay.
Lastly, I want to add that the power of the President has been significantly expanded over the course of our nation's history. It has been expanded through law, interpretations (or misinterpretations) of the Constitution, and precedents set by other Presidents. I totally disagree with you that the President is some sort of puppet. He is every bit as powerful as he seems that he is, and as the Leader of the Free World he holds enormous influence with the international community. You would be hard pressed to show that he doesn't wield vast power, and I do not believe that any professional studies of politics would agree with you there. If you want to argue that he is heavily influenced by others like lobbyists or corporations, I would be forced to give you some grace there, but he is not the impotent figure head that you make him seem.
Agree or disagree with my argument, that's fine. But I ask two things of you all: that you speak to the argument and you be respectful. I really don't care if you don't agree with my position, but if you don't agree with the position don't present straw man arguments or try to attack me for being "anti-Bush" or socialist or some other atypical nonsense like that. I'm not really trying to hear it. I stated this before and I will say it again, if you don't agree and you don't speak to the issue then it only seems like you don't understand the argument or don't care to. I hope that you respect the fact that I took the time out to write this essay and that you take it as an olive branch representative of my intention to engage in civil discourse.
As for my sources, I did the majority of this from memory. What I did have to look up I used Wikipedia for more detailed information that I couldn't possibly remember if I tried.