In the News: Floss Discusses Presidential Impact on U.S. Economy with ABC News

Fred Floss, professor and chair of Buffalo State University’s Economics and Finance Department, recently spoke with ABC News on the state of the United States economy. 

The article, “DNC Speakers Claim Biden Inherited Economy in Disarray. Economists Say It’s More Complicated,” by Max Zahn, explores the recent narratives put forth by the Democratic and Republican parties, crediting Presidents Biden and Trump respectively for the recovery of the economy from a pandemic-induced recession. Zahn interviewed multiple experts—including Floss—who maintain that neither narrative is completely accurate.

“There are kudos to be given to all the different sides,” Floss told ABC News. “It’s very complex.”

Floss expanded on this for Buffalo State:

“The question of who should get credit for either a good or bad economy is always complicated. When COVID is added in, there are even more questions. Presidents only have limited impact on the economy. 

“During COVID, both presidents had major stimulus programs. President Trump signed the CARES Act, while President Biden signed the American Rescue Plan and the Inflation Reduction Act. Together the three bills put about $4 trillion into the economy. The stimulus got the economy growing, but it also came with inflation.

“Would the economy have bounced back if the $4 trillion had not been added to the economy? We will never really know. The same is true with the rises in inflation and their subsequent drop.

“Add to this that the three bills were changed by Congress before they were passed. Is it Congress that should get some of the credit or blame?

“As I said, it’s complicated.”

Header photo by Mathieu Turle; headshot courtesy of Fred Floss.