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Fox Business alert saying that it's crucial for the country to have strong economic leadership now.
President Obama today announced a new top advisor to replace the outgoing Austan Goolsbee take a listen.
Our great ongoing challenges nation remains.
How to get this economy growing faster that's our urgent mission.
And that's what I'm fighting for every single day.
That's why today I'm very pleased to nominate Alan Krueger to chair of the council of economic advisors.
But our next guest says not only will -- was -- not help the economy this prescription for -- higher taxes will only make us worse off.
Cato Institute senior fellow Dan Mitchell joins us yeah.
-- explain all right Dan any is there is there.
I guess is my question.
If the leader is appointed by the president and does He always have to follow the president's line of thinking in terms of -- of fix the economy.
No He doesn't and clearly the ideal situation would be someone.
Who would have the where -- off.
They basically read Obama the riot act behind closed doors has a let this prescription a big government isn't working for the economy.
-- -- retract he's already been in the administration at the department of treasury.
Our early on all of this track record is that he's in favor of higher taxes big government.
He wrote something just a couple of years ago.
Basically endorsing a value added tax for the American economy.
So I think all Obama's done which by the way other presidents do as well there's he's picked someone who mirrors his own ideological.
Affiliation and so we're gonna have one big government advisor.
Giving suggestions to a big government president so I don't expect anything to change.
That's a again much has been made today about the fact that Krueger is a labor economist and considering that unemployment is probably our biggest challenge of -- now in this country.
Do you think He could bring some fresh perspective to a solution -- -- Well I wish I did say that was trail but -- became rather infamous and number years ago for producing a study that was later widely debunked.
Claiming that higher minimum wage is actually increase jobs so in the in the language of economist who's basically turning supply and demand curves.
And if that's the kind of advice that He gives Obama increase the burden on business make it more expensive for businesses to hire people and that's magically gonna create jobs.
Now I'm not optimistic I wish I could be.
Daniel he's also been a proponent of the vat tax throughout the years but I don't some conservatives that also light of that tax why do you think that's a dangerous -- to go down.
Well Obama -- Obama himself said a couple of years ago that a bad -- quote something that has worked for other countries on quote.
What countries is He talking about Greece Portugal all these European countries that adopted the -- it just lead to more spending more debt and now fiscal crisis.
And and I think they're raising Krueger endorsed it does because like most people on the left He wants to finance bigger government now there are some people on the right.
Who are for about I think there wildly mistaken biggest.
Their attitude is well let's surrender we know taxes are going to go up so He may as well try to pick a tax that won't do as much damage.
Per dollar raised as higher income tax rates.
That's not the right approach that's that's a biggest -- that's turn over to this post to would you like -- point eight.
Well I wasn't expecting anything dramatic as I said before Obama is a creature of the laughed and he's of course going to appoint.
People out the left to that slot.
Now and my fantasy world -- -- get a pet you know the ghost of Milton Friedman to be in that position yet that -- -- -- -- but.
I was never under any delusions.
So the best thing from my perspective is that while.
Where exactly in the same situation we were before the appointment was made thank you Dan appreciated as always Dan Mitchell indicated --
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