Larry Summers criticizes stimulus plan and is seeing worst Marcoeconomic policies in 40 years

[Benjamin Frank 2.0]

The world wide inflation was clearly largely a result of supply chain breakdowns and then compounded with Russia invading Ukraine. Economics has not emphasized the importance of logistics anywhere near enough and is still overly influenced by assumptions such as Adam Smith's invisible hand. This is true for both Janet Yellin and Larry Summers.

The ongoing persistent inflation and the resulting high interest rates are likely mostly caused by the high deficit/debt and probably by the already existing tariffs against China and the resultant break down in trade with China. The deficit/debt are mostly due to Republican economic policy and, obviously, there is the kind of ironic situation of the high interest rates themselves being partly responsible for the deficit being so high due to the increase in interest on the debt.

That said, I would not count on a decline in interest rates to reduce the deficit significantly and those in power needs to take the deficit much more seriously. Obviously the Republicans need to stop treating the deficit as a cynical political game only pretending to be concerned about it when a Democrat is President. And certainly the Republican's Presidential nominee here is of no help promising yet more tax cuts mostly for the wealthiest.

[GP270watch]

Guys that’s been wrong about everything is wrong some more

Is this the most recommended post in atlas history? That'd be ironic since it was ultimately wrong.

The fact it has even more recs now than it did before I bumped this thread is lol worthy. He was proven completely right here but it’s easier to yell how evil neoliberalism is than realize that passing over a trillion dollar stimulus at a time when the economy was growing very fast is extremely inflationary.

The situation in March of 2021 was not comparable to Feb 2009 at all yet everyone treated it as it was and did a much bigger stimulus than Feb 2009 which was ridiculous.

 He wasn't proven right at all and was predicting much worse inflation. What we got for having a global pandemic and Russian invasion of Ukraine disrupting energy to most of Europe is remarkably manageable, more so than anybody predicated, thanks in part to the policies of Joe Biden.

 The remedies Larry Summers was touting were also wrong:

 Larry Summers Was Wrong About Inflation

Yellen criticizes Summers on inflation: He’s ‘been wrong in the past’

“He’s a person who’s been wrong in the past,” Yellen said of Summers during a House Ways and Means Committee hearing. “He said that it would absolutely take a recession to bring inflation down, and that turned out to be a serious misjudgment.”

Yellen has hardly had a good performance her term as Secretary of the Treasury. Suggest you find a better source to criticize Summers with.

  Yellen did a great job. She was "wrong" on calling inflation transitory according to the media but that was the mainstream view including Powell believing so. She was totally right about the strength of the Biden economy and that reductions to inflation could be done without a major recession. She was also consistently touting the job creation and positive economic indicators when others were doubtful and predicting doom and gloom.

 

[GP270watch]

The world wide inflation was clearly largely a result of supply chain breakdowns and then compounded with Russia invading Ukraine. Economics has not emphasized the importance of logistics anywhere near enough and is still overly influenced by assumptions such as Adam Smith's invisible hand. This is true for both Janet Yellin and Larry Summers.

The ongoing persistent inflation and the resulting high interest rates are likely mostly caused by the high deficit/debt and probably by the already existing tariffs against China and the resulting break down in trade with China. The deficit/debt are mostly due to Republican economic policy and, obviously, there is the kind of ironic situation of the high interest rates themselves being partly responsible for the deficit being so high due to the increase in interest on the debt.

That said, I would not count on a decline in interest rates to reduce the deficit significantly and those in power needs to take the deficit much more seriously. Obviously the Republicans need to stop treating the deficit as a cynical political game only pretending to be concerned about it when a Democrat is President. And certainly the Republican's Presidential nominee here is of no help promising yet more tax cuts mostly for the wealthiest.

 Great points about China as well, we have no control over how China chose to fight the Covid pandemic. We then entered into hostilities under Trump and Biden with China from what was an offshoring economy shifting to something else. Supply chain shortages from China were a major factor of inflation, even shipping what goods were available from China was at one time a bottleneck until the Biden admin solved the logjam at the ports(remember the media hysteria about that, lol).

[Benjamin Frank 2.0]

Guys that’s been wrong about everything is wrong some more

Is this the most recommended post in atlas history? That'd be ironic since it was ultimately wrong.

The fact it has even more recs now than it did before I bumped this thread is lol worthy. He was proven completely right here but it’s easier to yell how evil neoliberalism is than realize that passing over a trillion dollar stimulus at a time when the economy was growing very fast is extremely inflationary.

The situation in March of 2021 was not comparable to Feb 2009 at all yet everyone treated it as it was and did a much bigger stimulus than Feb 2009 which was ridiculous.

 He wasn't proven right at all and was predicting much worse inflation. What we got for having a global pandemic and Russian invasion of Ukraine disrupting energy to most of Europe is remarkably manageable, more so than anybody predicated, thanks in part to the policies of Joe Biden.

 The remedies Larry Summers was touting were also wrong:

 Larry Summers Was Wrong About Inflation

Yellen criticizes Summers on inflation: He’s ‘been wrong in the past’

“He’s a person who’s been wrong in the past,” Yellen said of Summers during a House Ways and Means Committee hearing. “He said that it would absolutely take a recession to bring inflation down, and that turned out to be a serious misjudgment.”

Yellen has hardly had a good performance her term as Secretary of the Treasury. Suggest you find a better source to criticize Summers with.

  Yellen did a great job. She was "wrong" on calling inflation transitory according to the media but that was the mainstream view including Powell believing so. She was totally right about the strength of the Biden economy and that reductions to inflation could be done without a major recession. She was also consistently touting the job creation and positive economic indicators when others were doubtful and predicting doom and gloom.

The inflation was transitory (except for this present persistent inflation.) After World War II in 1947/1948 prices rose by 25% (so, something costing $1 in 1946 was $1.25 in 1948) after the 1946 price controls were lifted. This was obviously a result of both retooling to a civilian economy as well as people having saved up money during the war years. (Supply and demand.)

So, this was obviously 'transitory' inflation. The two years of high inflation was about the same as post Covid. 'Transitory' does not mean 'short term' as the dimwitted media assumed.

Yellin and Jerome Powell were also wrong in assuming that the transitory inflation would be short term, but then we get back to the mistaken economics assumptions about Adam Smith's invisible hand.

When the media thought that Yellin was apologizing about allowing inflation to get out of hand, this is what she was actually apologizing about - that economists don't understand the importance and complications of logistics/supply chains and assume that these things are inherently efficient due to these assumptions of Adam Smith's invisible hand.

[Badger]

Ok beep boop

this is a redav insult, no content no originality

Original smidginal, it fits like a glove.

[Benjamin Frank 2.0]

A further explanation on the importance of complications of logistics/supply chains.

Students are taught in first level micro economics regarding The 'theory of the firm' that there are several reasons preventing markets from existing: governments outlawing the markets, no consumers willing to pay at the cost of production, I think there is one other reason as well that I can't think of (my Rick Perry moment), however there is also an assumption in economics that when a market does exist that it is inherently efficient, and maybe at one time that was true as economics is not a 'fixed science' but a 'changing art.'

I was educated on this myself back in 2015 when oil prices dropped and I said on twitter that I expected the Canadian oil companies to save money by laying off most of their employees. A mathematician turned business consultant who went by the name 'Strategy as Tires' replied to me that the oil companies would not do that, at least for their key employees.

I asked him why not and he replied that their key employees are essential without whom the business could not operate and these oil companies would rather pay these employees to do nothing (just like with CERB during Covid) than have them move on because replacing them was impossible especially with their knowledge and understanding of the company's proprietary information. Because of his background in mathematics, he referred to this situation of key employees leaving as a 'discontinuity.' (a calculus term.)

So, although this was prevented in the U.S and Canada due to the CERB payments from governments (or whatever they were called in the U.S), it was not prevented in other parts of the world and this caused the problem with manufacturing inputs as the businesses in other parts of the world that provide these inputs had to get up and running again having let go of key employees.  I'm sure further along the supply chains in importing/exporting and at ports there were similar problems of those businesses getting back to operating.

I hope this explains what was meant by 'supply chain breakdowns and shortages.'

[dead0man]

Ok beep boop

this is a redav insult, no content no originality

Original smidginal, it fits like a glove.

yeah, nothing makes an insult better than running into the ground.  Totally normal behaviour and not the actions of a group of bullies.

[MasterJedi]

Ok beep boop

this is a redav insult, no content no originality

Original smidginal, it fits like a glove.

yeah, nothing makes an insult better than running into the ground.  Totally normal behaviour and not the actions of a group of bullies.

I mean, I figured the “if that’s what your parents told you to believe” would be more original, factual but someone other then OSR would probably have a fit about it…

[OSR stands with Israel]

Ok beep boop

this is a redav insult, no content no originality

Original smidginal, it fits like a glove.

yeah, nothing makes an insult better than running into the ground.  Totally normal behaviour and not the actions of a group of bullies.

I mean, I figured the “if that’s what your parents told you to believe” would be more original, factual but someone other then OSR would probably have a fit about it…

The reason I cited them is because you guys basically would reject every source a blue avatar would post about education policy so I was “my mom who works in a school corroborates this”. So no that’s just confirming the source we’d use but you guys don’t believe anything that’s not in your liberal media bubble .

It’s the same reason why you guys mocked Summers here , because he went contrary to what MSNBC/NY Times/Wa Post were telling then and he turned out to be right .

[Amenhotep Bakari-Sellers]

Watch the debate between Trump and Biden and Biden is gonna go after Trump tax cuts, it's takes more than supply side economics didnt we learn that from Reagan

Stimulus checks does contribute to inflation but we aren't paying back student loans, that's what's driving INFLATION and all Rs are gonna keep giving rebates to Corporate

[Amenhotep Bakari-Sellers]

They were supposed to make us pay when they stopped the blanket discharges, instead of blanket discharges we are already in 25 yr Forgiveness meaning you just pay little or no interest on your Student loans


As long as people are not paying back student loans they are gonna spend it and cause more inflation

Jeffries is likely to give us one more check when he gets back in leadership, because he rather give it to the people than tax cuts

[Benjamin Frank 2.0]

Ok beep boop

this is a redav insult, no content no originality

Original smidginal, it fits like a glove.

yeah, nothing makes an insult better than running into the ground.  Totally normal behaviour and not the actions of a group of bullies.

I mean, I figured the “if that’s what your parents told you to believe” would be more original, factual but someone other then OSR would probably have a fit about it…

The reason I cited them is because you guys basically would reject every source a blue avatar would post about education policy so I was “my mom who works in a school corroborates this”. So no that’s just confirming the source we’d use but you guys don’t believe anything that’s not in your liberal media bubble .

It’s the same reason why you guys mocked Summers here , because he went contrary to what MSNBC/NY Times/Wa Post were telling then and he turned out to be right .

I presume you oppose Trump's further tax cut promise then.

[Open Source Intelligence]

Guys that’s been wrong about everything is wrong some more

Is this the most recommended post in atlas history? That'd be ironic since it was ultimately wrong.

The fact it has even more recs now than it did before I bumped this thread is lol worthy. He was proven completely right here but it’s easier to yell how evil neoliberalism is than realize that passing over a trillion dollar stimulus at a time when the economy was growing very fast is extremely inflationary.

The situation in March of 2021 was not comparable to Feb 2009 at all yet everyone treated it as it was and did a much bigger stimulus than Feb 2009 which was ridiculous.

 He wasn't proven right at all and was predicting much worse inflation. What we got for having a global pandemic and Russian invasion of Ukraine disrupting energy to most of Europe is remarkably manageable, more so than anybody predicated, thanks in part to the policies of Joe Biden.

 The remedies Larry Summers was touting were also wrong:

 Larry Summers Was Wrong About Inflation

Yellen criticizes Summers on inflation: He’s ‘been wrong in the past’

“He’s a person who’s been wrong in the past,” Yellen said of Summers during a House Ways and Means Committee hearing. “He said that it would absolutely take a recession to bring inflation down, and that turned out to be a serious misjudgment.”

Yellen has hardly had a good performance her term as Secretary of the Treasury. Suggest you find a better source to criticize Summers with.

  Yellen did a great job. She was "wrong" on calling inflation transitory according to the media but that was the mainstream view including Powell believing so.

To quote John Cochrane of Stanford: "The Federal Reserve saying they were surprised by inflation is like an army saying they were surprised by an invasion." If that's what happened, you still failed.

That's more Powell than Yellen, but Yellen is the conduit from the administration, she was much better as Fed Chair than a partisan job like running Treasury (probably true for most buteaucrats, and her performance in post-FOMC meeting stand-up interviews with the financial press has been maligned.

Her statement about Summers there she's talking her own book. Her and Powell don't want to become Arthur Burns.

[Ancestral Republican]

Trickle down dipsh*t was wrong then and is wrong now. What else is new?

[YE]

Lol at the idea that the ARP was a major driving factor for the inflation we saw a couple years ago.

[lfromnj]

Lol at the idea that the ARP was a major driving factor for the inflation we saw a couple years ago.

It’s certainly at least some of the factor. America had inflation earlier than Europe which didn’t get hit till Ukraine . Certainly was a waste of money.

[Vice President Christian Man]

Guys that’s been wrong about everything is wrong some more

Is this the most recommended post in atlas history? That'd be ironic since it was ultimately wrong.

Scotts “Im still calling it Atlas” was with over 200 recs.

Wow that's a lot. Can you link it?

I'm still calling it Atlas.

[Steve from Lambeth]

Of course the marcoeconomic policies are weak. He's just a Senator.

[Amenhotep Bakari-Sellers]

States are still sending out child tax credits so the idea that stimulus checks if passed at natl level will cause more inflation is laughable because states are sending out child tax credit