Monday, June 13, 2011

Larry Summers on Preventing a Lost US Decade

link here to article

Larry Summers, now back at Harvard and out of the Obama administration has second thoughts on the need for stimulus. The GOP claims that we have a supply side problem that can be fixed by using the GOP panacea of tax cuts. Summers believes that we have a problem of inadequate demand. We could stimulate demand by taking advantage of low interest rates for government debt and investing in infrastructure to create jobs. We are half way through a lost decade. The GOP does not have a viable solution and the Obama administration is moving toward supply side remedies as well. Where was Summers when we needed him?

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