The online, often predatory lending companies benefit from lower-income Americans needing emergency cash. That aligns with Summers’s concern trolling about an ‘overheated’ economy.
BY ALEXANDER SAMMON, DAVID DAYEN AUGUST 2, 2021
Larry Summers has spent the Biden presidency in a state of perpetual concern. He is convinced that the trillions in pandemic relief, with perhaps more fiscal spending on infrastructure to come, will overheat the economy, leaving policymakers unable to contain runaway inflation without triggering a deep recession. In March, the former Treasury secretary described the state of affairs as “the least responsible macroeconomic policy we’ve had in the last 40 years.”
Most economists and experts have signaled reassurance that the recent run-up in inflation, like the 0.9 percent increase in consumer prices seen by the Department of Labor in June, is transitory, buoyed by used-car prices, supply chain problems, and reverberation off of lockdown lows. In fact, core inflation growth has already started to slow down, suggesting that the experts were right, and Summers’s concerns were overblown.
But who exactly is Summers concerned about? The ordinary laborer paying more for a bucket of chicken wings while possibly making more in wages, or the people who have preoccupied Summers for virtually his entire career: bankers and financiers? The answer may be found in his client list. Summers has been diligently laundering his reputation on behalf of “fintech” lenders, real estate startups, and Bitcoin plays, including several businesses that would benefit from an economy that values lower inflation over full employment.
https://prospect.org/economy/larry-summers-holds-positions-with-numerous-financial-bottom-feeders/