Larry Summers could be considered totally correct. But then we have only supply side econ and in that light he is totally wrong.
The stimulus spending fired off the labor market. The cork is out of the bottle. Labor for a generation wont be the same “let’s just use them”.
We have seen the demise of GDP growth between 1981 and 2020. We can not and will not continue on that way. Free passes to the wealthy are utter garbage. WEB has been trying in vein to get people to realize this is wrong. WEB does not throw business away and it is not his battle to fight.
It is our battle to fight. We need responsible real GDP growth. If I have to care about one thing in that it must be “responsible”. We do not need clowns.
Larry Summers could be considered totally correct.
If this is regarding his inflation comments, I don’t see where Larry Summers predicted much of anything with respect to the current inflation we are seeing in the US.
He basically “predicted”
*high inflation, or
*lower/modest inflation with hard landing, or
*lower/modest inflation with soft landing
each with 1/3 probability (https://slate.com/business/2021/12/inflation-cpi-larry-summe…). So he predicted every outcome each with equal likelihood. I don’t consider that a prediction. (Of course, maybe now he is pontificating like he forecast all of this current inflation as a result of government stimulus.)
Further, it could really be argued that plenty of the inflation in the U.S. is driven by covid factors per se (supply chain issues, reluctance to return to work because of health risks or child care) plus Ukraine-Russia supply impacts in addition to U.S. stimulus per se. This is not to say that stimulus did not have an impact, it surely did. But other countries have high inflation and did not have the amount of stimulus that the U.S. had.