Donald C. Reutemann CFP®, RPA

(518) 688-2223

Investment Read Time: 3 min

Required Reading: The Economic Report of the President

In January, the White House released its 533-page book, “Economic Report of the President (2021).” If you haven’t yet made time to peruse this weighty tome, don’t beat yourself up. Most people don’t take the time to read the report—still others don’t even know it exists.1

What is the “Economic Report of the President” and what does it tell us about the economy and the future?

In the wake of World War II—and worried that the economy might fall back into another Great Depression—Congress passed the Employment Act of 1946, which established the President’s Council of Economic Advisors to analyze government programs and make recommendations on economic policy. It also mandated that the president submit an annual economic report to Congress. The first report was submitted by Harry Truman in 1947.2

The report is written by the Chairman of the Council of Economic Advisors and includes both text and extensive data appendices.3 It must be submitted to Congress no later than 10 days after the submission of the Federal budget by the President of the United States. Although each report is different, they generally include such information as:

  • Current and foreseeable trends in employment, production, real income, and Federal expenses
  • Employment objectives for various labor sectors
  • Annual goals
  • A program for carrying out objectives.

Response to the Economic Report is often mixed. Opponents of the administration tend to be critical of the president’s approach. They point out that the objectives and recommendations in the report are inevitably influenced by the administration’s opinion and policy.

However, it’s important not to overlook the sheer volume of data provided by the report. This information can help identify the forces driving—or dragging—the economy.

If you don’t see yourself getting cozy with a cup of coffee and the Economic Report of the President, you might consider using the internet to get an overview of its most relevant topics. Understanding the current state of the economy—and the president’s objectives for the future—may help you make plans for your own future.

1. GovInfo.gov, 2021
2. Investopedia.com, 2021
3. GovInfo.gov, 2021

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

Planning for All Families

Planning for All Families

These planning tips can help.

TIPS for Inflation

TIPS for Inflation

If you are concerned about inflation and expect short-term interest rates may increase, TIPS could be worth considering.

Investment Challenges of the Affluent Investor

Investment Challenges of the Affluent Investor

Affluent investors face unique challenges when putting together an investment strategy. Make sure you keep these in mind.

 

Have A Question About This Topic?







Thank you! Oops!

IRA Withdrawals that Escape the 10% Tax Penalty

The list of IRA withdrawals that may be taken without incurring a 10% early penalty has grown.

How Will You Be Remembered?

How are you protecting your own memory through adequate legacy planning that will pass your gains safely on to your family.

Layers of Protection

Take these five steps to protect your financial well-being before making any other changes.

View all articles

How Much Home Can I Afford?

With a few simple inputs you can estimate how much of a mortgage you may be able to obtain.

Potential Income from an IRA

Estimate your monthly and annual income from various IRA types.

Comparing Investments

This calculator compares the net gain of a taxable investment versus a tax-favored one.

View all calculators

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

View all presentations

RE: Retirement

How does your ideal retirement differ from reality, and what can we do to better align the two?

When Do You Need a Will?

When do you need a will? The answer is easy: Right Now.

Once Upon a Goal

Do you know how to set up your financial goals for success? This knight does.

View all videos