Armstrong Economics Blog/Central Banks Re-Posted May 16, 2023 by Martin Armstrong
The headlines praise Biden for nominating the first Latina woman to the Federal Reserve’s board. None of the current headlines list her qualifications, which is a given since this administration favors diversity over experience. I, for one, would like to know more about the people being placed in positions of power since their nationality has no relation to their responsibilities. Yet Sen. Robert Menendez (D, NJ) continually criticized the Fed for not having any Latino members. Let us look into Adriana Kugler, who may become very influential in the financial world.
Kugler, 53, was an executive director for the World Bank. She earned a Bachelor of Arts from McGill University in 1991, graduating with first-class honors in economics and political science. She was awarded her Ph.D. in Economics by the University of California at Berkeley in 1997. She worked as the chief economist for the Labor Department under Obama from September 2011 to January 2013 as well.
A recent article from the Wall Street Journal actually shines some light on Kugler and her policies. The picture they used of her was taken at a World Economic Forum event. She fought for the US government to provide families with $26,400 in funding during the pandemic and proposed three separate pilot programs to raise unemployment benefits. “For every one dollar that we put into the pockets of the unemployed working Americans, two dollars ripple throughout the economy, and it’s actually a win-win—it helps everybody,” she said. Well, that line is troublesome for obvious reasons since inflation should be the top priority for the Fed.
She is a proponent of closing the wage gap and eliminating income inequality. She penned an article about “income redistribution in the form of tax and transfer programs” to offer social insurance for the poor.
“Income redistribution in the form of tax and transfer programs provide social insurance and protection against many types of risks over a person’s lifetime and over his or her career that are not always provided through private insurance. Thus, social insurance in the form of transfer programs—such as the Temporary Assistance for Needy Families, or TANF, program; Medicaid; the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps; and the Special Supplemental Nutrition Program for Women, Infants, and Children, more commonly referred to as WIC—allows individuals to make decisions that involve higher risk, while at the same time affording them greater mobility than they would otherwise undertake.”
She argues that America needs a “more progressive tax system” in addition to “transfer programs” to redistribute wealth. “[P]rogressive taxation and transfer to the poor is not only the right thing to do; it is the smart thing to do,” the new Fed appointee stated.
The World Bank executive is also a big proponent of open immigration policies and climate change initiatives. “It is the biggest existential threat of our time, and I do believe that we need domestic action to go hand in hand with global leadership on climate change,” she claimed.
Biden has also elevated Philip Jefferson to be the Fed’s vice chair, making him the #2 guy at the Federal Reserve.
The Federal Reserve is intended to be separate from the government, but Biden is installing people who openly hold partisan views regarding economics. Kugler supports Biden and the Build Back Better globalists in terms of her views on wealth redistribution, combining climate change with fiscal policy, government aid, increased social programs, and more. But hey, at least she is Hispanic and female.