You Can Thank Larry Summers For Inflation

If you want someone to blame inflation on it's this guy. Larry Summers was one of the chief architects of the modern neoliberal economy. The system he designed is shaky at best. While he wants to blame inflation on government spending, the price increases on goods are coming from supply shortages caused by his system.

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Sam: Let's talk about the piece that you did in the New York Times the other day. we talked about it I guess Monday maybe it was.
Emma: yeah when it came. very fancy, David. Congratulations.
Sam: Larry Summers got a little.
David: He wasn't mad. He was disappointed.
Sam: he was disappointed in you on Twitter. That was pretty fun to watch. but this is just talking about you know why we are not and this is important because there is always this sort of compulsion by I want to say larry summers types. but really in many respects, it's a rainy summer. and maybe one or two other people like him who have overseen the turn to austerity on multiple occasions. and he is mad either you know maybe because he was not brought on board in the Biden administration. there's a lot of reporting to that effect. and is speaking out against the spending that you know for a time had decreased child poverty by 40 and this country. has contributed to the greatest job growth that we've had over the course of one year that we've been keeping records for. I want to be clear on that because of the New York Times. but just talk about the difference the that there are two elements one is the inflation that we have now is not about an overheated economy it's instead about the way that our economy is structured at which larry summers have bears some responsibility.
David: I mean yeah you just summed it up I mean what we've just been talking about for a while are all of these forces that put pressure on our supply chain and led to delays shortages and increased prices. offshoring all of our goods production. most mostly the china and south Asia. the deregulation of the nodes along the chain here from shipping companies to things we haven't talked about like trucking and rail that have reduced capacity and then increased prices on those types of things when when when this went down. the disinvestment at the ports. the austerity if you will of our public infrastructure. the monopolization not just of shipping but of the companies that produce a lot of these goods. so that if any one of them falls down anyone manufacturing plant shuts down it causes a ripple effect in cascades across the country. across the world. the system of just-in-time logistics where you don't have any inventory. you have lean inventories and your ideas that I'm going to get that good off the ship I'm going to get it into somebody's hands. I'm not going to waste time building space to store away that good until somebody buys it. I want to I want to get as much there as possible. all of these things were part of an economic consensus about how we should structure our markets and our economy of which larry Summer was a major if not the major protagonist.