I have been commenting on building deflationary pressures for some time. The pandemic has accelerated these forces with negative implications for status quo thinking and social stability. I don’t often agree with Larry Summers, but his comments in this segment are lucid. The era of borrowing to inflate asset prices has misallocated trillions in resources. The new paradigm requires less handouts for the corporate sector and investors along with higher tax collection and borrowing for real world improvements in income, nutrition, health, productivity and infrastructure for the masses.
Former U.S. Treasury Secretary Lawrence H. Summers, a Wall Street Week contributor and adviser to Democratic presidential nominee Joe Biden, says that concerns about deflationary pressures reflect a new paradigm. He joins David Westin on “Bloomberg Wall Street Week.” Here is a direct video link.
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