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U.S. Presidents and the Performance of the Economy

A little less than two week ago, President Barack Obama spent his final day in the White House. We can now reflect upon his eight years in office, including with respect to the performance of the U.S. economy during those years. One word of caution is in order. Economists generally resist giving American presidents too much credit or blame for economic performance. Many factors influence economic outcomes, and many are not susceptible to the influence of policymakers.

 Bloomberg recently compiled 14 statistics that characterize economic activity, including gross domestic product, budget deficits as a percentage of GDP, home equity, and payrolls. Researchers assigned an average overall economic progress score based upon the 14 metrics. If one looks at the last six presidents, the economy strengthened most between the years 1993 and 2000 – that’s when President Bill Clinton was in office.

The next most rapid years of progress were those from 2009 to 2016 to 2016 – that’s when President Obama inhabited the White House of course. According to Bloomberg, the weakest rate of progress occurred during the presidency that fell between Clinton’s and Obama’s, that of George W. Bush.  

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Anirban Basu, Chariman Chief Executive Officer of Sage Policy Group (SPG), is one of the Mid-Atlantic region's leading economic consultants. Prior to founding SPG he was Chairman and CEO of Optimal Solutions Group, a company he co-founded and which continues to operate. Anirban has also served as Director of Applied Economics and Senior Economist for RESI, where he used his extensive knowledge of the Mid-Atlantic region to support numerous clients in their strategic decision-making processes. Clients have included the Maryland Department of Transportation, St. Paul Companies, Baltimore Symphony Orchestra Players Committee and the Martin O'Malley mayoral campaign.