This really is a misconception about the economy and government involvement. A current administration does not "run" the economy; at best the Treasury Department and the Federal Reserve chase the economy with their false manipulations of interest rates. They do more harm than good; whether there is a Democrat or Republican in office. Since it began, government involvement in the economy has been a DESTABILIZING factor instead of a stabilizing one.
Bullshit. An administration has all sorts of control over an economy. The biggest factor being the BUDGET. A balanced budget and move towards reducing the defecit = faith in economy which drives investment and propels the economy. Cutting taxes and overspending, the hallmark of Reagan's and Bush's economic plan, result in bloated defecit, inflation, and sluggish market.
Last time I checked, Congress held the purse strings to this nation. The Congress was led by the Democrats during Reagan/Bush. Reagan got the tax cut he promised America in 1980, but to get it he had to agree to increased spending that the Dems wanted. History bears out other examples, too.
My point, Pete, is that government involvement, period in the economy is a problematic, destabilizing force. Specifically, here, I am talking about the actions of the Federal Reserve in manipulating lending rates to try and fiddle with inflation, deflation, etc. I agree with you that budget status does affect faith in the economy, to a certain degree. A massive reduction in porkbarrel spending would reduce this influence, I think.
Greg