Governments and Economic Performance

The lags in terms of the effects of policy are uncertain and probably highly variable. It seems unlikely that voters understand this well.

And governments react to this by over-implementing policies that generate noticeable short-term benefits and (possibly) long-run costs.

This is a no-brainer, backed by overwhelming evidence.

Sometimes, yes; but as a general proposition about foolishness of voters and irrelevance of governments, no.

Often, in public debate, external forces and uncontrolled markets are blamed for poor economic performance, not true own political omissions

The evidence on this is perhaps not very strong but it is a plausible hypothesis.

There is evidence for link between voting choice & current/past econ performance, but link is weaker than conventional wisdom may suggest.
-see background information here
-see background information here
-see background information here

Emergency intervention can have immediate effects. But policy mostly has slow effects, especially on aggregate productivity

Some voters probably do. But even rational voters learn about a government's skill by observing economic performance under its policies.
-see background information here
-see background information here

Modern economies are driven by private initiative which depends partially on government policy. Governments can do more damage than good

Voters do not in general know much about economics; in particular the economic linkages across economies and lagged effects of policies.

"Learning the Wealth of Nations"...

In general, governments take small steps. But at crisis time, management capability is crucial. And in good time, silly governments...