Rich Welsh| During Sunday’s broadcast of CNN’s “State of the Union,” former Treasury Secretary Larry Summerssaid that “banana Republicans” and the events of January 6, 2021 had contributed to the inflation that is killing our economy and the American people’s wallets.
Summers said, “We should focus on what’s important, not raising input prices for American producers, so they’re less competitive, which is what much of those tariffs do. Instead, we should be focusing on things that allow the leakage of key technologies to China and the like. We should pass at long last some kind of legislation, ideally, on a bipartisan basis that would raise the vastly excessive Trump tax cuts, join the world in taxing corporations, take down prescription drug prices. All of that would operate to reduce inflation. There are things we can do.”
First off, the Trump/Republican tax cuts are what gave us the strongest economy in our nation’s history and the strongest economy in world history. Larry Summers knows better. To raise corporate rates now would be a huge mistake in that it would increase prices for goods and services even more than the Biden inflation, supply chain incompetence, irresponsible government spending, and continued paying people to stay home and not work.
When you reduce taxes, you increase revenues. It works every time it is tried.
He is correct about China’s forced-technology-transfer extortion model, but then he went nuts.
Summers added, “If I can step out of my area for one second. I think the banana Republicans who are saying that what happened on January 6 was nothing or OK are undermining the basic credibility of our country’s institutions. That, in turn, feeds through for inflation because if you can’t trust the country’s government, why should you trust its money? So, I think it’s terribly important that we take the temperature down in Washington. That we recognize behavior that’s just out of bounds of reasonable and decency, we give the Fed the room it needs. We bring down the budget deficit. We take down prices directly through prescription drugs. This is a challenge that we can meet. If we’re prepared to be serious about taking it on.”
I don’t know of a single prominent Republican who ever said that the two-and-a-half-hour riot that took place at the Capitol on January 6 was “nothing or OK.” What I and Summers heard from Republicans was that they were horrified about the riot, the people involved should be investigated and prosecuted, and that the way the Democrat DOJ, run by the most lawless Attorney General, Merrick Garland, has treated the January 6 defendants and how the Democrats have gone on about it was way overboard.
This is why I don’t think Summers really believes what he’s saying. He warned the Biden administration and the Federal Reserve Bank for over a year about irresponsible stimulus spending going to lead to massive inflation.
Even CNN reported on it back in May 2021:
Larry Summers is urging Washington to tap the brakes on stimulus — or risk unleashing a serious burst of inflation.
“I think policy is rather overdoing it,” Summers said in recorded comments at a CoinDesk conference that were released Wednesday. “The sense of serenity and complacency being projected by the economic policymakers, that this is all something that can easily be managed, is misplaced.”
The former Clinton and Obama official took issue with how the Federal Reserve and fiscal powers continue to turbo-charge the economy even though the once-real risk of a catastrophic deflationary spiral has since faded.
“We’re taking very substantial risks on the inflation side,” Summers said in remarks originally made May 18, adding to a series of warnings the former Harvard president has issued in recent weeks.
Just two months ago, the New Yorker also mentioned how Summers warned the Biden administration of high inflation rates that we are experiencing now:
In a column published in February, 2021, Summers questioned the historic size of President Biden’s $1.9-trillion covid-relief proposal, which Congress passed the following month, and wrote, “There is a chance that macroeconomic stimulus on a scale closer to World War II levels than normal recession levels will set off inflationary pressures of a kind we have not seen in a generation.” At the time that column appeared, the rate of consumer-price inflation was below two per cent. Today, it stands at 7.9 per cent. “Larry deserves credit for identifying the danger of inflation,” Austan Goolsbee, an economist at the University of Chicago who worked in the Obama Administration, said. “At the start of 2021, the only people saying that were the folks that had predicted hyperinflation every year since 2008.”
It sounds like Larry was taken out to the woodshed or a re-education camp and told what’s what because now he’s blaming the Republicans for, get this, complaining about the government so much that people are losing faith in government and that’s leading to inflation, and he threw a little January 6 in there as well.
Then how come we didn’t have inflation after the Democrats made up the whole Russian collusion hoax? Democrats every day for four years told us that the American people had lost faith in the government, yet Trump gave us some outstanding economic numbers all around.
If you want to talk about losing faith in government, then let’s talk about the Russia Russia Russia hoax that was completely made up by the Democrats to destroy Trump. And don’t forget that Democrat mayors and governors put America through the COVID lockdowns and mandates, including vaccine mandates that not only didn’t work but physically harmed many people according to CDC numbers. Then people had to deal with the 2020 election steal debacle that they and their boot-licking sycophants in the misinformation news media still lie about today.
I would say those things perpetrated by Democrats would have caused a complete lack of faith in the government, yet we didn’t get high inflation and all the other problems we are now facing until Joe Biden and the Democrats in Congress started spending like drunken sailors.