Kevin Hassett

Kevin Hassett – Life, Career, and Economic Insights

Explore the life and work of Kevin Hassett, the American economist and policy adviser. Learn about his academic background, government roles, key contributions, controversies, and memorable quotes.

Introduction

Kevin Allen Hassett is a prominent American economist best known for his roles as Chair of the the Council of Economic Advisers from 2017 to 2019 under President Donald Trump, and more recently as Director of the National Economic Council (from 2025). His career bridges academic economics, think tanks, and high-level public policy, especially in tax policy, growth forecasting, and fiscal strategy.

In debates around taxation, growth, regulation, and macroeconomic policy, Hassett has emerged as a polarizing yet influential figure. His perspectives are central to understanding how economics interfaces with politics in the 21st century.

Early Life and Education

• Kevin Hassett was born on March 20, 1962 in Greenfield, Massachusetts.

• He completed his high school studies at Greenfield High School, Massachusetts.

• For undergraduate study, Hassett attended Swarthmore College, where he earned a B.A. in Economics (with high honors).

• He pursued graduate studies at the University of Pennsylvania, earning his M.A. and Ph.D. in Economics. His doctoral work was supervised by noted economist Alan J. Auerbach.

His academic training gave him a strong foundation in public finance, macroeconomics, and tax policy, which have informed much of his later work.

Academic & Early Career

• After completing his doctorate, Hassett served as a faculty member at Columbia Business School (assistant then associate professor) during 1989–1994.

• From 1992 to 1997, he worked as an economist in the Division of Research and Statistics at the Federal Reserve Board of Governors.

• In 1997, he joined the American Enterprise Institute (AEI) as a resident scholar. There he explored tax policy, fiscal policy, energy economics, and investment behavior.

• At AEI, Hassett held roles including Director of Economic Policy Studies and oversaw research on topics like inequality, corporate taxation, and growth.

In his think-tank phase, Hassett built a reputation as a policy-oriented economist, combining academic rigor with a willingness to engage in political debates.

Government & Policy Roles

Chair, Council of Economic Advisers (2017–2019)

• In September 2017, President Trump appointed Kevin Hassett as the 29th Chair of the Council of Economic Advisers (CEA).

• In that capacity, he was a key figure in formulating and defending the Tax Cuts and Jobs Act (TCJA) of 2017, which overhauled the U.S. tax code, lowered rates, and changed corporate and individual tax structures.

• He also oversaw or contributed to analyses involving wage growth, regulatory policy, and macro forecasts.

• In June 2019, Hassett announced his departure from the CEA.

Return to the White House & National Economic Council (NEC)

• In April 2020, under Trump’s first administration, Hassett was brought back as a Senior Advisor for Economic Issues, particularly to help navigate economic impact during the COVID-19 crisis.

• As part of that assignment, he developed economic forecasts and models related to lockdowns, recovery, and fiscal stimulus—a role that drew scrutiny, especially for projections that ultimately underestimated pandemic severity.

• In late 2024, following the election, President-elect Trump announced that Hassett would serve in his administration as Director of the National Economic Council starting in 2025.

• As of 2025, Hassett holds that NEC position, coordinating economic policy across the executive branch.

Outside the White House, Hassett has also served as a Distinguished Fellow in Economics at the Hoover Institution (Stanford) and managed roles at the Milken Institute.

Key Ideas, Contributions & Critiques

Tax Policy & Growth Emphasis

Hassett’s work is marked by strong advocacy for tax cuts, deregulation, and supply-side growth policies. His belief is that lower marginal tax rates and streamlined code can spur greater investment, productivity, and long-term growth.

He co-edited and authored works on tax reform (e.g. Toward Fundamental Tax Reform) and has often argued that tax policy plays a central role in shaping macroeconomic equilibrium.

Dow 36,000 and Growth Optimism

One of Hassett’s more famous (and controversial) contributions is his co-authorship (with James K. Glassman) of Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market (1999). The central thesis was that stock valuations were undervalued and that the Dow could reach 36,000 relatively quickly under normal growth assumptions.

That bold forecast, however, was criticized heavily when the dot-com bubble burst and markets declined. Critics argued that it underestimated volatility, risk premia, and the cyclical nature of markets.

Forecasting, Macroeconomics & Modeling

Hassett is active in macroeconomic modeling, particularly around consumption, investment, and growth dynamics. His models have been used in policy contexts to project impacts of tax changes, stimulus, and regulation.

His work during the COVID-19 era, though, drew critique—especially for overly optimistic assumptions about mortality curves, economic rebound speed, and the limited duration of pandemic disruption. Some observers saw a mismatch between his economic models and epidemiological realities.

Trade, Global Participation & Open Markets

Though a conservative economist, Hassett has occasionally expressed support for trade liberalization. One of his noted quotes is:

“Liberalized trade — in broadly multilateral, regional, or bilateral agreements — is a key ingredient in the recipe for prosperity … An absolute prerequisite for long-term economic growth is full participation in the global economy and trading system.”

Yet in recent political contexts, his public alignment with tariff policies under the Trump administration has complicated the perception of his trade philosophy.

Critiques & Challenges

• Some critics argue that Hassett’s optimism in growth and the ability of tax cuts to “pay for themselves” is overly sanguine and underestimates deficit risks.

• His Dow 36,000 forecast is often cited as an exaggerated, perhaps misguided bet in hindsight.

• His role in pandemic economic modeling was criticized for projecting unrealistically moderate trajectories.

• Tensions arise between his earlier pro-trade stances and his alignment with more protectionist policies under Trump.

• As NEC Director in 2025, his advocacy for aggressive fiscal and trade strategies may face pushback from more cautious economists, central bankers, or international partners.

Personality, Style & Public Presence

Hassett is known as a conversational, media-savvy economist. He combines data, charts, historical analogy, and political messaging in public appearances.

He often uses strong language and assertive arguments, especially when defending controversial policy positions. Some of his more blunt statements have sparked media attention.

He also publishes op-eds and columns in outlets like Bloomberg, National Review, The Wall Street Journal, engaging both an academic and general audience.

He has been characterized as a believer in bold, high-stakes economic policy, willing to push limits rather than stick to cautious incrementalism.

Notable Quotes

Here are several attributed quotes that reflect Hassett’s worldview on economics, policy, and public debate:

“Economists have the same occupational hazard as baseball managers and football coaches: Every person on the street knows their job better than they do.”

“One of my favorite indicators of the near-term trend for the economy is auto sales, since folks tend to buy a car when they are feeling optimistic about their financial circumstances.”

“Liberalized trade — in broadly multilateral, regional, or bilateral agreements — is a key ingredient in the recipe for prosperity … An absolute prerequisite for long-term economic growth is full participation in the global economy and trading system.”

“The problem is that there is no reliable source of information left, no way to accumulate trusted accounts of the plusses and minuses of any given political choice.”

These lines illustrate his mixture of empirical insight, policy advocacy, and commentary on public discourse.

Lessons & Reflections

1. Boldness can drive influence — but invites scrutiny. Hassett’s ambitious forecasts (e.g. Dow 36,000) and aggressive tax strategies have given him influence—but also made him a target of critique when outcomes diverge.

2. Economists in power must balance theory and realism. Translating models into policy, especially under uncertainty (e.g. pandemics, global shocks), reveals the limits of pure forecasting.

3. Public communication matters. Hassett’s skill in media, op-eds, public debates, and clear messaging has amplified his policy impact beyond purely academic circles.

4. Policy consistency is challenged by politics. The tension between his earlier advocacy for open trade and later alignment with protectionist elements shows how economic principles may shift in political contexts.

5. Interdisciplinary humility is vital. His controversies around economic modeling during pandemic response remind us that policy intersects with health, behavior, geopolitics — not just numbers.

Conclusion

Kevin Hassett’s journey—from academic economist to influential policy adviser—reflects the porous boundaries between scholarship and government. His stances on tax cuts, growth policy, and regulatory reform have reshaped debates about the role of government in economic life.

Yet his legacy is mixed: while he has been influential in major policy shifts, he has also faced controversy when predictions fail or confront political realities. For students of economics, his career is a case study in the promise and perils of bringing theory to power.