While it is easy to slam Larry Summers on his statement on inflation and employment, he is a victim of an economic system devoid of humanity & morality.
Larry Summers proves the inhumanity of our economic system
Please listen to the entire commentary in the video. It is very important.
Larry Summers never fails to tell it as he sees it. The thing is, he is correct for all the wrong reasons. He predicted inflation, and it came through. To be sure, a stopped clock is right twice a day. He has been calling for inflation for some time now. It happened this time because the oligarchy, the plutocracy’s self-defense mechanism as the parasite they are, is to protect themselves as they kill the body that sustains them.
“I think we’re getting bad news on inflation, and we’re getting bad news on economic strength,” Larry Summers said. “The bad news on inflation is coming in the form of the wage and price increase data. The bad news on economic strength that’s coming in terms of the spending data. And so what that’s telling us is, frankly, what I and many others have been saying for a long time, that the Fed and to some extent the administration, but much more the Fed’s confidence in a soft landing is tooth fairy kind of stuff. And we need, in my view, to prioritize inflation because if we don’t prioritize inflation, we’re going to have higher and higher inflation and a more and more stagflationary situation. And we need to prioritize inflation. But if we do, we’re going to very likely have a meaningful economic downturn. I was very surprised by Secretary Yellen’s expression of optimism that we could somehow get through this without the unemployment rate rising above 5%. She’s a great economist, and that’s certainly a possibility. But my best guess would be that 5% unemployment sort of corresponds once to neutral in the current post-COVID environment. And so to have inflation come way down, we’re going to have to see unemployment get above that. So I think we just have to accept what’s necessary as part of the investment process for building the very, very strong economy that we can have in the United States.”
Understand what Larry Summers is saying. To fix a problem created by our corporatocracy (supply chain problems, inflation, off-shoring), the poor and middle-class must pay to clean it up with unemployment and high-interest rates on their credit cards, mortgages, etc.
What gets worse is that Summers seems to blame the government for providing assistance long overdue to Americans. At flows off of his tongue easily. Andrea Mitchell asks Summers if a recession is inevitable.
“I think the odds are very high,” Summers said. “Perhaps over three quarters, that in the next year or two we will have a recession. And I think that’s just what happens when you have an economy that is as overheated as our economy was allowed to become.”
He said our economy “was allowed” to be overheated, implying that the government did the wrong thing by providing humane living sustenance while asking most to stay home to mitigate the pandemic. It is shameful. As productivity increased over the years, since the inception of supply-side economics, virtually all the gains went to the rich, the oligarchy, as opposed to the people who actually are responsible for the work and productivity increase.
The chart above is probative of our economic system. The American worker has been robbed since the inception of supply-side economics. We have bought into the lies about how an economy is to function, and in the process, the middle-class has consistently voted to enrich the few and impoverish many of their neighbors or sometimes themselves.