In an op-ed for The Washington Post , Larry Summers warned of the dangers of inflation, writing, While there are enormous uncertainties, there is a chance that macroeconomic stimulus on a scale closer to World War II levels than normal recession levels will set off inflationary pressures of a kind we have not seen in a generation. There will be consequences for the value of the dollar and financial stability.
administration’s massive spending (three times our federal budget at that time), 14% unemployment still plagued the country. And the unemployment numbers during his first two terms averaged 18% (without women even officially part of the workforce). As noted financial historian Amity Shales writes in her book The Forgotten Man, everything from government-mandated (high) wages, price-fixing on goods, and massive taxes worked against the economy. These measures held back progress and contributed to the persistent shortage of jobs in the latter part of the 1930s. Meanwhile, despite evidence that his programs weren’t working, FDR seemed surrounded by sycophants. Shales writes, It is difficult for men in high office to avoid the malady of self-delusion. They are always surrounded by worshipers. They are constantly and for the most part sincerely assured of their greatness. Not unlike Biden meeting with swarms of liberal, glad-handing academics now (maybe Shales should have been invited). No one in the administration will listen to why this course of action might be wrong – not even from one of their own. EVEN THE DEMS ARE PANICKING Larry Summers, Bill Clinton’s former Treasury Secretary and Barack Obama’s former head of the National Economic Council, is decidedly not on board with Biden’s current economic policy. He’s calling it the “least responsible” in four decades, while insisting that we’re creating “enormous risks.”
No one in the administration will listen to why this course of action might be wrong – not even from one of their own.
The liberal media promptly mocked Summers for his views, including Slate which wrote, “Larry Summers Has Some Weird Fears About the Biden Relief Plan.” Mother Jones adding, “The White House doesn’t want to hear from Larry Summers.” And Politico said that Summers “Is the skunk at the COVID relief party.” But the media’s intimidation isn’t stopping him... Instead, Summers is doubling down, recently telling Bloomberg TV that, “These are the least responsible fiscal macroeconomic policies we’ve had for the last 40 years.” The United States, Summers warned, will face “a pretty dramatic fiscal-monetary collision.” “What is kindling is now igniting,” he said, explaining that the COVID recovery will create demand at the same time as the government is giving out money and the
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