Inequality is fueling global political unrest.
Harlan Green © 2016 Graph: SF Fed It also means abandoning the Trickle Down theories of the Reagan era that said "government
There is literally something to do every day in the summertime in Chicago. And I don't mean literally in the way most people use it. I mean every day, without fail, there is something going on.
Summers says that the current focus on monetary policy is not enough to combat the current downward world economic trend. Yes, as I said, I think he's right. But his own solutions fall short.
Right now interest rates are extremely low - even negative in some countries. This high price for government debt means the markets are demanding that governments issue more debt. This is the law of supply and demand. Again: money markets are demanding more supply of government debt.
This year's political campaign has forced the economics profession to reconsider the fraying orthodoxy of free trade.
John Maynard Keynes once famously said that the difficulty lies not so much in developing new ideas but in escaping from old ones. And one of the oldest and most pervasive and pernicious economic ideas is that technology kills jobs.
And to think Larry Summers almost got the job instead.
While president Barack Obama's handling of foreign policy suggests that the 2016 election may see a sharper than usual focus on international issues, it is important to remember that most Americans vote on pocketbook issues in presidential elections.
Protecting the American people from another devastating financial crash and the economic wreckage it causes begins with reflecting honestly about the past and trying to learn the right lessons.
The result of such austerity policies has been lost output and overall wealth that several economists say could last for years--and may even be permanent--hurting both jobs and economic output.
Even former Fed Chair Ben Bernanke has been irked by right wing conservatives for doing just the thing that most conservative economists, such as Martin Feldstein, and even arch-free market theorist Milton Friedman, said was the right thing to do during recessions--inject more money into the economy.
While the Trans-Pacific Partnership deal is being hotly debated in Congress, the fact is that this trade deal -- or any trade deal -- will have little impact on American jobs, or more specifically, on the decline in good-paying jobs for middle-class Americans.
At last month's JFK Jr. Forum, Jason Furman, who served in President Obama's administration eight months before it was formed, talked with Larry Summers, former President of Harvard and U.S. Secretary of the Treasury, in a fireside chat on the current state and future of the U.S. economy.
Is TPP the Most Progressive Trade Agreement in History? Not If You Need Access to Affordable Medicines
The May 10th Agreement struck the right balance between the need to promote innovation and the need to protect public health. TPP must meet the standards set in the May 10th Agreement. Right now, it does not.
I am reading "Daniel Patrick Moynihan, A Portrait in Letters of an American Visionary" edited by Steven Weisman. It is a good title because Moynihan was indeed a visionary.
Everything will, instead, be online. Education will be free. It will be worldwide. It will be accessible. It will be meritocratic. Gone will be professors. Gone will be PhD degrees. Gone will be Harvard. Carey now knows The Secret of Education.
The class bias of American politics has not only cost us our democracy. It has also cost us our jobs, our health, and our security. For years, the recovery was crippled by the politics of austerity, as a bipartisan coalition took a butcher's knife to the public sector, and as balanced budgets took precedence over basic needs.