Presidential Impotence

Why Obama or McCain won't be able to cure the ailing economy.

By Daniel Gross
Posted Saturday, June 28, 2008, at 7:06 AM ET

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As the presidential campaign kicks into gear, housing, energy, and rising unemployment have thrust the economy front and center. Whether they are talking about the need to drill off the coast of South Beach (John McCain), or the necessity of confiscating the profits of ExxonMobil (Barack Obama), each candidate is unequivocally promising voters that come Jan. 20, 2009, should he have the high privilege of succeeding George W. Bush, he will instantly reverse the decline of housing prices, bring gasoline prices crashing back to earth, and generally kick the economy back into gear.

If you believe that, I've got some subprime mortgages I'd like to sell you. Does the president really have any effect on the short-term direction and performance of the economy? The answer is no, but with two important "buts."