A majority of American workers believe the results of the upcoming election will have an impact on unemployment, and nearly half are changing their savings habits to prepare for the outcome, according to a new national survey from MarketWatch Guides.

Those concerns, however, belie the functional reality, according to MarketWatch economists and political scientists, that the office of president, regardless of the party that holds it, has little direct control over the country’s economy.

The poll also shows that a majority of Americans, 55 percent, mistakenly believe unemployment is worse now than it was four years ago during COVID, which saw the unemployment rate peak at 14.8 percent, nearly 3 .5 times higher than today’s 4.1%, according to the survey. Bureau of Labor Statistics. Gen Z respondents had the highest rate of misconceptions about current unemployment levels, with 72% believing it is worse now than four years ago.

“The economy remains the top issue for voters going to the polls,” Matt Brannon, personal finance expert at MarketWatch Guides, said in the survey report. “Supporters of both parties fear the consequences if the other side implements its economic agenda.

“But it’s important to know that the White House has limited influence on the overall state of the economy. In many cases, increases in unemployment are beyond the president’s control, depending much more on market forces such as supply and demand than on changes to a federal budget.”

Brannon notes that other recent data collected by Marketwatch Guides, a subsidiary of Dow Jones & Company, found that consumers are divided but slightly more likely to trust the Democratic Party than the Republican Party when it comes to making against unemployment – by a margin of 37% to 33%. Brannon said this may be a reflection of the 2008 and 2020 unemployment increases that occurred under Republican administrations. But other countries with opposing financial philosophies saw similar increases in unemployment during those times, Brannon said.

An overwhelming majority of participants in the latest survey, 70 percent, said they are already preparing for possible layoffs, and 40 percent report saving more than usual. Just over a third, 36%, said they experience personal anxiety about losing their job, and about the same number, 32%, regularly browse relevant job listings.

How much power does the President have over the economy?

A report published last month by North Carolina State University notes that while the sitting president can make moves that have indirect economic impact, the dynamics are much more influenced by the nature of the US economy.

“In the type of economy we have – a market economy – the vast majority of day-to-day economic decisions are made by business people in companies and by individuals in households,” the report said. “This is by design. Proponents of the market system argue that making individualized decisions about the economy maximizes freedom.”

The report’s authors note that state and local government entities can have economic influences, particularly through regulatory powers, but the federal government has the greatest overall impact, although presidential actions play a relatively minor role in the overall process.

“A president has influence over both fiscal and monetary policy, but the influence is indirect,” the report said. “The fiscal policy is implemented through the federal budget. While a president can make recommendations on the budget, ultimately both houses of Congress must pass the budget. This often leads to lengthy negotiations between a president and both chambers and all political parties in Congress.”

While the NC State paper argues that the president’s direct powers over the economy are limited, especially with the two major tools of fiscal policy and monetary policy, the incumbent can exert pressure through the power of influence that comes with holding top elected officials. of the nation. office.

“This is the president’s use of the ‘bully pulpit,’ a term coined by Theodore Roosevelt to mean a president who advocates policy using speeches and interviews,” the report said. “The goal is to generate public support for policies and public pressure on Congress to agree to a president’s ideas and recommendations.”