Kevin Hassett
Encyclopedia
Kevin Allen Hassett is an American
economist
. He is best known for his work in macroeconomics
and tax policy
and for coauthoring Dow 36,000
, published in 1999. Hassett is currently a senior fellow and director of economic policy studies at the American Enterprise Institute
. He was John McCain
's chief economic adviser in the 2000 presidential primaries
and an economic adviser to the campaigns of George W. Bush
in the 2004 presidential election
and McCain in the presidential election of 2008
.
, where he graduated from Greenfield High School. He received a B.A. in economics from Swarthmore College
and a Ph.D. in economics from the University of Pennsylvania
. He was an assistant professor of economics at Columbia Business School
from 1989 to 1993 and an associate professor there from 1993 to 1994. From 1992 to 1997, Hassett was an economist in the Division of Research and Statistics at the Federal Reserve Board of Governors
. He served as a policy consultant to the United States Treasury Department during the George H. W. Bush
and Bill Clinton
administrations.
investments, corporate tax
ation, telecommunications competition, the effects of taxation on wages, dividend
taxation, and carbon
taxes.
In 2003, Hassett was named director of economic policy studies at AEI. During his tenure at AEI, he became an increasingly prolific popular writer, penning articles in major newspapers like the New York Times, the Washington Post, and the Wall Street Journal. He writes a monthly column for National Review
and, since 2005, a weekly column for Bloomberg
.
of Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market
. It was published in 1999 before the dot-com bubble burst. The book's title was based on a calculation that, in the absence of the equity premium, stock prices would be approximately four times as high as they actually were. In its introduction, Glassman and Hassett wrote that the book "will convince you of the single most important fact about stocks at the dawn of the twenty-first century: They are cheap....If you are worried about missing the market's big move upward, you will discover that it is not too late. Stocks are now in the midst of a one-time-only rise to much higher ground–to the neighborhood of 36,000 on the Dow Jones industrial average." The Dow industrials index closed at 10,681.06 on the day of the book's publication but by the end of 2004 it remained at essentially the same level—10,783.01, having dropped over 25% in the meantime but recovered. As of March 9, 2009, the trough of the 2008-9 bear market, the Dow Jones was at 6,547.05, 81% below his 36,000 prediction.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
. He is best known for his work in macroeconomics
Macroeconomics
Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. This includes a national, regional, or global economy...
and tax policy
Tax policy
Tax policy is the government's approach to taxation, both from the practical and normative side of the question.-Philosophy:Policymakers debate the nature of the tax structure they plan to implement and how they might affect individuals and businesses .The reason for such foitution effect]],...
and for coauthoring Dow 36,000
Dow 36,000
Dow 36,000: The New Strategy for Profiting From the Coming Rise in the Stock Market is a book by James K. Glassman and Kevin A. Hassett. It was published in 1999, shortly before the dot-com bubble burst, and predicted that the Dow Jones Industrial Average would rise to 36,000 within a few years...
, published in 1999. Hassett is currently a senior fellow and director of economic policy studies at the American Enterprise Institute
American Enterprise Institute
The American Enterprise Institute for Public Policy Research is a conservative think tank founded in 1943. Its stated mission is "to defend the principles and improve the institutions of American freedom and democratic capitalism—limited government, private enterprise, individual liberty and...
. He was John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
's chief economic adviser in the 2000 presidential primaries
Republican Party (United States) presidential primaries, 2000
The 2000 Republican presidential primaries were the selection process by which voters of the Republican Party chose its nominee for President of the United States in the 2000 U.S. presidential election. Governor of Texas George W...
and an economic adviser to the campaigns of George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
in the 2004 presidential election
United States presidential election, 2004
The United States presidential election of 2004 was the United States' 55th quadrennial presidential election. It was held on Tuesday, November 2, 2004. Republican Party candidate and incumbent President George W. Bush defeated Democratic Party candidate John Kerry, the then-junior U.S. Senator...
and McCain in the presidential election of 2008
United States presidential election, 2008
The United States presidential election of 2008 was the 56th quadrennial presidential election. It was held on November 4, 2008. Democrat Barack Obama, then the junior United States Senator from Illinois, defeated Republican John McCain, the senior U.S. Senator from Arizona. Obama received 365...
.
Education and early career
Hassett is a native of Greenfield, MassachusettsGreenfield, Massachusetts
Greenfield is a city in Franklin County, Massachusetts, United States. The population was 17,456 at the 2010 census. It is the county seat of Franklin County. Greenfield is home to Greenfield Community College, the Pioneer Valley Symphony Orchestra, and the Franklin County Fair...
, where he graduated from Greenfield High School. He received a B.A. in economics from Swarthmore College
Swarthmore College
Swarthmore College is a private, independent, liberal arts college in the United States with an enrollment of about 1,500 students. The college is located in the borough of Swarthmore, Pennsylvania, 11 miles southwest of Philadelphia....
and a Ph.D. in economics from the University of Pennsylvania
University of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
. He was an assistant professor of economics at Columbia Business School
Columbia Business School
Columbia Business School is the business school of Columbia University in Manhattan, New York City. It was established in 1916 to provide business training and professional preparation for undergraduate and graduate Columbia University students...
from 1989 to 1993 and an associate professor there from 1993 to 1994. From 1992 to 1997, Hassett was an economist in the Division of Research and Statistics at the Federal Reserve Board of Governors
Federal Reserve Board of Governors
The Federal Reserve Board of Governors is the main governing body of the Federal Reserve System. It is charged with overseeing the 12 District Reserve Banks and with helping implement national monetary policy. Governors are appointed by the President of the United States and confirmed by the Senate...
. He served as a policy consultant to the United States Treasury Department during the George H. W. Bush
George H. W. Bush
George Herbert Walker Bush is an American politician who served as the 41st President of the United States . He had previously served as the 43rd Vice President of the United States , a congressman, an ambassador, and Director of Central Intelligence.Bush was born in Milton, Massachusetts, to...
and Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
administrations.
American Enterprise Institute
Hassett joined AEI as a resident scholar in 1997. He worked on tax policy, fiscal policy, energy issues, and investing in the stock market. He collaborated with R. Glenn Hubbard on work on the budget surplus, income inequality, and tax reform. Hassett published papers and articles on capital taxation, the consistency of tax policy, returns on energy conservationEnergy conservation
Energy conservation refers to efforts made to reduce energy consumption. Energy conservation can be achieved through increased efficient energy use, in conjunction with decreased energy consumption and/or reduced consumption from conventional energy sources...
investments, corporate tax
Corporate tax
Many countries impose corporate tax or company tax on the income or capital of some types of legal entities. A similar tax may be imposed at state or lower levels. The taxes may also be referred to as income tax or capital tax. Entities treated as partnerships are generally not taxed at the...
ation, telecommunications competition, the effects of taxation on wages, dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
taxation, and carbon
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...
taxes.
In 2003, Hassett was named director of economic policy studies at AEI. During his tenure at AEI, he became an increasingly prolific popular writer, penning articles in major newspapers like the New York Times, the Washington Post, and the Wall Street Journal. He writes a monthly column for National Review
National Review
National Review is a biweekly magazine founded by the late author William F. Buckley, Jr., in 1955 and based in New York City. It describes itself as "America's most widely read and influential magazine and web site for conservative news, commentary, and opinion."Although the print version of the...
and, since 2005, a weekly column for Bloomberg
Bloomberg L.P.
Bloomberg L.P. is an American privately held financial software, media, and data company. Bloomberg makes up one third of the $16 billion global financial data market with estimated revenue of $6.9 billion. Bloomberg L.P...
.
Dow 36,000
Hassett is coauthor with James K. GlassmanJames K. Glassman
James K. Glassman is an American conservative editorialist, journalist, diplomat and author. He is currently the host of the television program Ideas in Action, which airs on PBS member stations across the country. On December 11, 2007 Glassman was nominated by President George W...
of Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market
Dow 36,000
Dow 36,000: The New Strategy for Profiting From the Coming Rise in the Stock Market is a book by James K. Glassman and Kevin A. Hassett. It was published in 1999, shortly before the dot-com bubble burst, and predicted that the Dow Jones Industrial Average would rise to 36,000 within a few years...
. It was published in 1999 before the dot-com bubble burst. The book's title was based on a calculation that, in the absence of the equity premium, stock prices would be approximately four times as high as they actually were. In its introduction, Glassman and Hassett wrote that the book "will convince you of the single most important fact about stocks at the dawn of the twenty-first century: They are cheap....If you are worried about missing the market's big move upward, you will discover that it is not too late. Stocks are now in the midst of a one-time-only rise to much higher ground–to the neighborhood of 36,000 on the Dow Jones industrial average." The Dow industrials index closed at 10,681.06 on the day of the book's publication but by the end of 2004 it remained at essentially the same level—10,783.01, having dropped over 25% in the meantime but recovered. As of March 9, 2009, the trough of the 2008-9 bear market, the Dow Jones was at 6,547.05, 81% below his 36,000 prediction.