Why the President Isn’t All That Important

As an outsider to the investment community, I am constantly struck by its obsession with politics… and particularly with the role of the president. Attention and money flow to candidates in the belief that there is a unique importance to the president in shaping the republic’s future.
I find that interesting because, in my view, the American president is one of the least powerful national leaders in the world. This is particularly true in domestic affairs where he is a very visible, but a rather minor player in crafting policy. Russian President Vladimir Putin or Chinese President Xi Jinping are obviously more powerful than the American president. But so is British Prime Minister David Cameron, who operates in a parliamentary system where his ability to pass legislation is far greater than the American president’s.
The 3 Branches of Government
The president represents one of three branches of government, presiding over 50 states, which also have their own rights to legislate. All legislation must pass through Congress.
Both the Senate and House of Representatives have the power to determine whether legislation is adopted or rejected. The speaker of the House can frequently choose simply not to allow a bill to come to a vote. In the Senate, any senator can prevent a bill from coming to a vote by speaking incessantly, and a handful of senators can take the floor and block the vote.

This post was published at Mauldin Economics on FEBRUARY 15, 2016.