Business Case Studies, Fiscal Policy Case Study, Economics,US Presidential Elections

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Fiscal Policy Case Study

Case Title:

Economics and US Presidential Elections

Publication Year : 2008

Authors: Preetimaya Samanta & Sardhi Kumar Gonela

Industry: General Business


Case Code: FCP0016

Teaching Note: Available

Structured Assignment: Available

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Never mix emotions with economics.' This adage does not seem to ring well with the modern-day politicians. Tracking the US presidents, in the post-World War II era, reveals that all of them have tinkered with the budgets for political motives. In one sense, a ruler cannot avoid it. But to what extent can the politicians define the economic state? In a democratic setup, it is the common man who will ultimately answer this. The electoral pattern in the US since 1950s suggests some evidence for this. This case study dwells upon the correlation between US' economic condition in an election year and the electoral behaviour. Why is it that Republicans ruled longer than Democrats but still were victims of recession, at the ballot battle? Can they reverse the trend in 2008 elections, in the face of news over economic slowdown?

Pedagogical Objectives:

  • To analyse IS-LM Model
  • To understand efficacy of fiscal policy at different equilibrium conditions
  • To discuss the recession's economic and political effects
  • To debate whether a nation's economic agenda can be independent of its political establishment.

Keywords : US Presidential Elections, Great Depression, Recession and US Presidential Elections, Republicans and Democrats, Unemployment and recession, War Spending, Budget Deficit, GDP Growth and Interest Rates, Macroeconomics Case Studies, Current Account Deficits, Economic Indicators

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