Everybody loves former Fed governor Paul Volcker.
He spoke with Newsweek about the challenges for the US economy. He talked about regulation and central banking but he also had some comments about taxes, saying that any plan that doesn’t raise US taxes, is not an adequate plan.
To put it bluntly, we have to move more toward a consumption tax. There are different ways you could do that, but that’s what we ought to be doing.
On central banking, he says the Fed has limited tools and now magic bullets. He said QE3 won’t make a significant difference in the basic outlook, which “remains one of limited job creation in the private sector, but not really enough to reduce the unemployment rate at all rapidly.”
