Presbo’s latest new chief economic advisor is Alan Kreuger.
Alan has been working at the Treasury Department for the last 2 years. He also worked as Clinton’s chief labor economist back in the 1990s. As the Treasury’s chief economist, he has been responsible for analyzing and giving major input on: giving employers tax incentives to hire, “Cash for Clunkers,” the Small Business Lending Fund, and “Build America” muni bonds. These programs have ranged from non-effectual to unmitigated disasters. He apparently came by this inability to analyze honestly. In 1992, he was co-author of a study that said that raising minimum wages leads to more hiring, the exact opposite to what has happened when the current administration manipulated the minimum wage.
40% unemployment among black youth who cannot get a job at the new, more expensive minimum wage.
Now he has been advocating a Value Added Tax, where a tax is added every time something is done in the production of a good. This would normally be a consumption tax but he is advocating it in ADDITION to our existing tax code. But he does have a little more awareness of the problems associated with this program. He wrote in 2009 that the main downside of the VAT is that it suppresses economic activity.
Bet they do it anyway.
Wonder how long he will stay before he realizes that being associated with the non-sensical economic policies of Presbo will damage forever his ability to get a job in the real world or even in academia. And bails.