It's a converter gear (or sometimes called a dolly). They're used in commercial trucking all the time to tow double trailers (triples too, back when they were legal in more places). They work fine. :)
As said above, the additional axle's brakes are a big improvement in the towing situation.
The purpose of the converter gear, when used by a pickup to pull a fifth wheel, is to reduce the hitch weight load on the truck's rear axle and put that weight on the converter gear's axle instead. This is especially helpful when there is a single rear wheel truck and a fifth wheel with a very heavy hitch weight, such that the truck's single wheel rear axle/tires/wheels don't have the payload capacity to safely carry the hitch weight.
The converter gear doesn't do anything to help a lack of towing power problem. In fact, it makes it worse, because it adds more towed weight into the equation.
So, if you have a single rear wheel truck with plenty of towing power, but lacking in payload capacity, the converter gear may be answer you're looking for.
One drawback though, don't plan on being able to back up the trailer, except for a very short distance, in a straight line. The extra pivot point makes for a real mess when backing.