Larry Summers, former Treasury Secretary under Clinton and an important economic voice, is urging the US government to spend more
Larry Summers, former Treasury Secretary under Clinton and an important economic voice, is urging the US government to spend more. According to Summers, the case for substantial investment promotion is overwhelming. He believes increasing the amount of infrastructure spending will reduce the burden on future generations, both by sparking growth and by expanding the economy's capacity. Of course, this is a case that's been made by Keynesians for the last six years. Accommodative monetary policies have been helpful, but ultimately fiscal policy does a better job of creating demand. For instance, infrastructure spending would directly create jobs, which the US government can finance at essentially a zero interest rate. Alas, politics in Washington make any sort of fiscal expansion a near impossibility at the moment. (VIEW LINK)
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