(TeaParty.org Exclusive) – Despite the White House insisting the economy is making a comeback and that things in the US are being “built back better,” the reality is Americans are hurting. It’s time to buckle up, things are only going to get worse.
If you thought the economy was a mess now, just wait. Former Obama adviser Larry Summers has spoken out against the Biden regime, blasting them for their refusal to address the current state of affairs and the coming economic crisis.
Summers, a Harvard-trained economist who served as Bill Clinton’s Treasury Secretary and Obama’s Director of the National Economic Council, said recently that he thinks it’s possible to get inflation under control but that the Biden regime doesn’t appear to have any interest in getting a handle on the situation.
During a March 29 interview with The New York Times’ Ezra Klein, Summers was asked if there is a way to address the current economic issues without triggering a recession.
Summers responded that he thinks there is but also warned that it’s too late to prevent at least a “mild recession.”
“I think the likelihood is that we will not return to 2 percent inflation without having at least a mild recession,” Summers said.
“I think that the magnitude of the imbalances and excess demand in the labor market are sufficiently great that the odds are probably three and four that we will not get inflation down without running a recession.”
Summers noted that according to historical precedent, a recession is pretty likely.
“If you look at the last 75 years of American business cycle history and you just ask the question — suppose that the unemployment rate is below 4 and the inflation rate is above 4, what are the odds that the economy will go into a recession in the next year and what are the odds that the economy will go into recession in the next two years?” he asked.
“Depending on just how you calculate the answer, it’s about 50 percent that it will go in the next year and about 75 percent that it will go in the next two years.”
Klein asked if Biden’s supposed plan to increase supply will work, Summers responded that Biden is doing the exact opposite of what he needs to do in order to address America’s economic troubles.
He added that Biden has moved away from the limited tools the government has to address the economy, “The tools that there are, are tools that the Biden administration has so far been very reluctant to adopt,” he said.
“If we reduce tariffs, that would make more goods available at lower prices and perhaps reduce the consumer price index by 1 percent or more. But their rhetoric has gone the other way on tariffs,” he continued.
Summers added that Biden could have “decided to do public procurement as inexpensively as possible” to “reduce prices of a whole set of things the government buys and increase competitive pressure.”
Instead, the economist explained, he has “indicated a desire to shift from buying cheap to buying America and buying in ways that protect certain key constituencies.”
In other words, instead of trying to actually turn the economy around for Americans, Biden is busy working to protect his political allies.
No surprise there.
After offering a few ideas on how to spur growth, Summers said, “I don’t think it’s remotely realistic to think that programs of public investment are going to increase supply in a relevant horizon for the current inflation.”
Summers has insisted in the past that big government spending is not the solution to fixing economic problems but it doesn’t appear that the Biden regime cares to listen.
It’s almost like it’s all by design. Things are only going to get worse for Americans. Just like the regime has been planning all along.
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