Larry Summers: Profiled People in Economics and Banking
Executive Summary
- Larry Summers was one of the most prominent and influential policy makers.
- Larry Summers was a tool for private banking interests.
Introduction
Larry Summer is a neoliberal economist who is entirely focused on helping the elite at the expense of the rest of the population. The following quote is interesting for what it says about supposed economic specialists. This is an exchange between Warren Mosler and Larry Summers.
“I opened with a question: “Larry, what’s wrong with the budget deficit?” He replied: “It takes away savings that could be used for investment.” I then objected: “No it doesn’t, all Treasury securities do is offset operating factors at the Fed. It has nothing to do with savings and investment.” To which he retorted: “Well, I really don’t understand reserve accounting, so I can’t discuss it at that level.” Senator Daschle was looking on at all this in disbelief. This Harvard professor of economics, Assistant Treasury Secretary Lawrence Summers didn’t understand reserve accounting? Sad but true. So I spent the next twenty minutes explaining the “paradox of thrift” (more detail on this innocent fraud #6 later) step by step, which he sort of got right when he finally responded: “…so we need more investment which will show up as savings?” I responded with a friendly “yes,” after giving this first year economics lesson to the good Harvard professor, and ended the meeting. The next day, I saw him on a podium with the Concord Coalition—a band of deficit terrorists—talking about the grave dangers of the budget deficit.”
Source: Mosler Economics
This quote brings up the topic of whether mainstream economists even care what is true. Economists like Larry Summers, which is most economists, conform their views around what the elites want them to say. The best way of thinking of mainstream economists is that they are puppets of the elite and of private banking interests.