Larry Summers Reminds Us That Federal “Stimulus” Mostly Exists to Help Wall Street
Larry Summers is a former Secretary of the Treasury (under Clinton), a former World Bank technocrat, and an advisor to both Obama and Biden. He is also formerly the president of Harvard, where he now teaches.
Over the past two weeks in Washington, the battle has raged over whether or not the latest so-called stimulus bill should include direct payments to Americans. This would be the second round of direct payments which were sent out back in April as part of a $2-trillion spending package. The first stimulus checks were $1,200 per individual or $2,400 per married couple filing jointly, plus $500 per child under 17.
In mid-December, Congress approved a smaller second payment at $600 per adult and $600 for children. But President Trump, ever the populist, refused to sign off on that deal and instead demanded a larger payment of $2000. Recognizing which way the political wind is blowing, the Democrats approved the increase in the House, but the effort has stalled in the Senate under GOP leadership.
One would think this issue would be a slam dunk for most allies of the Democratic Party, but the old Wall-Street anti-populist wing of the Clinton-Obama axis is leading a small revolt against the idea of giving stimulus to anyone but Wall Street bankers and bond brokers.
There is, for example, Larry Summers.
Summers is a former Secretary of the Treasury (under Clinton), a former World Bank technocrat, and an advisor to both Obama and Biden. He is also formerly the president of Harvard, where he now teaches.
When Summer speaks, it’s a safe bet that his opinions well reflect those of the technocracy, Wall Street, and the wealthy “elites” of America’s ruling class.
He’s also a self-described Keynesian economist, and all this means Summers is an enthusiastic supporter of bailouts, easy money, and endless government spending.
Whether following the 2008 financial crisis, or during the Covid Panic of 2020, Summers supported doling out cheap and free money to Wall Street firms and huge banks in seemingly endless amounts. He rarely met a corporate bailout he didn’t like.
But when it comes to giving money directly to the taxpayers, well that’s where he draws the line.
Summers made this clear in an interview with Bloomberg last week, declaring he’s “not even sure [he is] so enthusiastic about the $600 checks.” He’s definitely not excited about $2,000 checks, which he described
Article from Mises Wire