ABSTRACT
Economics and politics are inextricably linked in the fabric of American democracy, and this interrelationship is most evident in the politics of public budgeting. Political leaders often justify their budgetary decisions on economic grounds: that their choices will be good for the economy, will create jobs, or will spur saving and investment. Political challengers take potshots at incumbents who have the misfortune of serving during economic downturns, suggesting that they should be held accountable for economic woes that have occurred on their watch. But beyond the ties to political rhetoric and partisan advantage, the condition of the economy can either constrain or facilitate budgetary choices.
