ABSTRACT
The Employment Act of 1946 formally assigned the president the responsibility for maintaining a healthy national economy, that is, an economy featuring "maximum employment, production, and purchasing power." Public expectations have strongly reinforced this statutory mandate. Successfully managing the economy has proved a daunting task for presidents because, to paraphrase an old public administration adage, their authority is not commensurate with their responsibility. Much of the authority to take actions affecting the macroeconomy resides with Congress and the Federal Reserve Board. Nevertheless, presidents who do not successfully stabilize the economy may experience hardship at the polls, as did Jimmy Carter and George Bush in their quests for reelection.
