Firing Line: Lawrence Summers

Economist and Former Treasury Secretary Lawrence Summers talks about the current economic climate and problems that may arise.

Summers says that the rise in debt in America is a set of economic phenomena that has never been seen before. It is difficult to pinpoint analogies from past events because a lot of the economic difficulties stem from the pandemic.

Due to the pandemic, Summers does bring up the fear of inflation. Most people today are accustomed to prices being stable. However, in the 1970s, prices would often double within four years. This is where inflation comes in.

“Inflation is a situation where the measuring rod of money isn’t something that you can rely on,” he said. The problem of inflation is something that needs to be looked at now, because inflation is a lot easier to prevent than to cure.

One problem that the pandemic has brought is a rise in unemployment. More employers are having problems filling vacant positions. He addresses this by saying that some do not feel safe to work due to COVID-19. Others have retired during the pandemic, and the rest are still relying on the unemployment earnings that they receive.

“We’re giving people more money for not working than they would have earned working,” he said. He does believe that this situation will work itself out during the summer as states pull back their unemployment earnings.

One major fear that Summers has is the rise of totalitarianism on college campuses. As a professor, he tries to provide a space for everyone to speak; however, he believes that the range of voices is not as wide as they should be. 

“Universities need to see themselves as places committed to intellectual excellence and openness to all ideas,” he said. The problem he notices is that they focus solely on social justice, and tend to throw out disagreeing viewpoints.