On Monday of this week, President Obama nominated Alan Krueger to head the White House Council of Economic Advisers (CEA). As, presumably, the President will rely upon his advice, you may wish to learn a bit about Mr. Krueger.
Currently, he is a professor of economics at Princeton University. Before that, for the first two years of the Obama administration, he was assistant Treasury secretary for economic policy under the guidance of Secretary of the Treasury, Timothy Geithner. While in that capacity he helped design the program known as “cash for clunkers”. As an economist, I suspect that even he, if he gave it any thought, would call that program a disaster. The government paid people to buy a car in September that they otherwise would have bought in November. Meanwhile, it drove up the price of used cars, as well as used car parts, because all “clunkers” that were turned in, by law, had to be destroyed.
He has also done studies that, at least in his mind, demonstrate that increasing the minimum wage does not depress employment. Interesting…should that be the case, let’s peg the minimum wage at $50 per hour and see what happens to employment, or, should I say, unemployment.
But, here is the best endorsement.
Cecelia Rouse, a Princeton economist and former CEA member, said of Mr. Kreuger…'[h]e will be a voice for more investments.’
By now, you know that “investments” is Obamaspeak for spending more of your money on “stimulus” programs, like, for example, cash for clunkers that, in reality, do more harm than good.
You may be wondering who Mr. Kreuger is replacing. Austen Goolsbee currently holds the job. He is leaving to return to academia. And, Mr. Goolsbee replaced Christina Romer who also left to return to academia.
This appointment tells me that when the President addresses the nation in September with his economic plan going forward, it will be same old same old. Stimulus, Part __, cash for __, and more debt.
I’m wondering, though, what is worse…having the Romer’s, the Goolsbee’s and the Kreuger’s of the world teaching economics, or setting this country’s economic policy.
No good answer there.