Larry Summers says the US is seeing 'least responsible' macroeconomic policy in 40 years

[Yo_Mama_Been_Loggin]

https://www.msn.com/en-us/news/politics/larry-summers-who-called-out-inflation-fears-with-bidens-dollar19-trillion-covid-19-relief-package-says-the-us-is-seeing-least-responsible-macroeconomic-policy-in-40-years/ar-BB1eOwTR?li=BBnb7Kz

Yeah we're helping people out who need it instead of the fat cats. Go fuck yourself Summers.

[regnaD kciN]

1. I agree with your comment...

...but would also note that Summers was a prominent voice in both the Clinton and Obama administrations, so this is a call coming from inside the house.

[Wounded Bear]

2. Yeah, like he would know...

being the author of a lot of our current problems.

[Buckeye_Democrat]

3. He's always been very concerned about inflation...

... just like right-wingers who are mostly concerned about protecting people with established wealth. (They obviously want their wealth to always have the same value tomorrow as it does today.)

He might be different than right-wingers in several ways, but any policy that helps protect established wealth more than offering greater opportunities to the poor -- which can include SURVIVAL -- has always been bothersome to me.

[joetheman]

10. Concern about inflation?

Just don't allow corporations and businesses with already obscene profit continue to raise prices. Slap on a windfall profits tax
And consumers refuse to buy price gouged items.

The supply and demand BS is not on the table right now. There should be more supply and less demand since the pandemic.

[Buckeye_Democrat]

12. Agree with you. nt

[uponit7771]

23. +1

[The Magistrate]

4. In Other Words, Sir --- We're On The Right Track

Summers has taken over Mr. Kristol's old mantle as the public commentator who is always, always wrong.
.

[Beakybird]

5. Obama was floating him for Fed chief, so I wouldn't call him a complete hack.

Only time will tell if he's right or wrong.

I agree that many economists could care less if people are dying of poverty as long as the markets are solid.

Lawrence Henry Summers (born November 30, 1954) is an American economist, former Vice President of Development Economics and Chief Economist of the World Bank (1991–93),[1][2][3] senior U.S. Treasury Department official throughout President Clinton's administration (ultimately Treasury Secretary, 1999–2001),[2][3][4] and former director of the National Economic Council for President Obama (2009–2010).[2][3] He is a former president of Harvard University (2001–2006),[3][5] where he is currently (as of March 2017) a professor and director of the Mossavar-Rahmani Center for Business and Government at Harvard's Kennedy School of Government.[3][6][7]

[Happy Hoosier]

6. The 40 years has largely been bad for...

The bottom 80% of America, with only brief respites with Clinton and Obama. Time for people-centered economics.

[Ritabert]

7. Who listens to Summers?

Waste of space.

[regnaD kciN]

16. Unfortunately, far too many Democrats over the past thirty-odd years...

It's how we got to the point where a right-wing billionaire could credibly frame himself as a "supporter of the common people" and us as "defenders of the elites."

[spanone]

8. K&R

[Hoyt]

9. If you read the article, you'll see his concern is that taxes won't be increased

as necessary.

That’s not an unreasonable fear for an economist. And if you ever lived through significantly increasing inflation, it ain’t pretty for poor and people on fixed income. Also respect the idea to go big on stimulus to avoid a downturn. These are not unreasonable opinions.

Crux of what Clinton and Obama’s economic adviser said: “While Summers praised the COVID-19 package's "ambition" and its "rejection of austerity orthodoxy," he stated that garnering legislative support for tax increases or spending reductions could prove to be difficult and might pose a "risk of inflation expectations rising sharply."

[madville]

18. Best thing to do is be in positions that hedge against inflation

Real estate, reliable equities that consistently pay dividends, precious metals, maybe even cryptocurrency, etc.

Revenue will have to increase or the currency will have to be greatly devalued to pay for the increased spending, pick your poison, none of it will be fun.

[Hoyt]

19. Agree. Unfortunately, poor and those on fixed income don't have that hedge.

And, the government will have a hard time bailing them out.

Sad fact is, we need lots of wealthy people to tax to pay for education, child care, bolstering Social Security, jobs, infrastructure, healthcare, debt reduction, etc. We can/should cut military, but that’s a drop in the bucket and provides some of our best paying jobs.

Fortunately, Biden gets this, but will have a hard time addressing it without ticking off a lot of Democrats. Would still rather have a Democrat trying to navigate through this.

[uponit7771]

24. Agreed Summers is concerned Dems wont raise taxes on corporations and make equity income

... paid to CEOs taxed on par with regular income.

So am I

The rich will fight tooth and nail to not be taxes at a progressive proportion and the kGQP messaging / feedback machine is going to protect them at all cost.

[Cha]

27. Thanks for the snips, Hoyt!

[COL Mustard]

28. Read The Article? There's No Fun In Commenting

If you’ve read the article!

[roamer65]

11. Fuck Summers.

You can’t have rampant inflation with the lowest velocity of money stats we have seen in the last 60 plus years.

https://fred.stlouisfed.org/series/M2V

[uponit7771]

26. +1, other than government spending the pressure of flow is going to top not the middle where

... inflation can mostly be seen.

The price of yachts and super cars have gone up mostly but not toilet paper and soup.

[hatrack]

13. Larry "Kudlow" Summers . . . .

This asscanoe outlived his credibility years ago.

[Voltaire2]

14. Said nothing last year or after the stupid tax cuts.

He is the worst, a Cicadan Democratic Deficit Hawk. Wakes up whenever the Democrats are in power.

[Me.]

15. Nobody Is Asking

Yet he keeps answering

[BootinUp]

17. 1/3 chance vs 1/3 vs 1/3. just throwing

Shit at a wall. Nothing better to add apparently.

[niyad]

20. Ah, yes, larry. The guy who said that biology is the reason women do poorly in science, and that

there is no sexual bias in academic or science hiring. His position in both the Clinton and Obama administrations, given his incredible misogyny, was always a disappointment.

[Kid Berwyn]

21. Trickle Down Larry

Good Ol’ Austerity Summers.

[applegrove]

22. If inflation takes off we cool the economy down using high interest rates.

Now is the time for infrastructure and covid relief. Interest rates are so low. Fat cats hate 1) inflation and then 2) cooling the economy because the first reduces the value of their money and the second means the stock market stops roaring. Thing is everybody shares the cooling. The rich have gotten used to only workers fighting inflation nationally, and the rich are used to the benefits of low credit. Why shouldn't the whole country share the benefit? Why shouldn't the whole country share the pain?

[Celerity]

25. Hey Larry

[Cicada]

29. Published notes of fed prove Yellen was most accurate forecaster on the board

Summers is nobody’s fool and only a fool would dismiss him. He is probably correct that there is a risk of inflation. But there is also a risk of economic decline if we dont take the risk of inflation. Biden has addressed this balance of risks saying most economists feel the risk of doing too little is worse than the risk of doing too much. In addition Yellen, the best economic predictor over her years on the fed board, thinks we can fight off inflation. So I’m not sure Biden and his team actually disagree with Summers’ prediction that we MIGHT trigger inflation but figure the risk is a good risk to take.