The brilliant PHD economist Lawrence Henry "Larry" Summers has come out with a scathing criticism of Donald Trump's economic policy:
“The Navarro-Ross paper is well beyond voodoo economics,” Summers said of the September report on Trump’s growth plans. “The logic of it, the arguments made, are so far out of the mainstream of any kind of responsible economic thinking that they are the economic equivalent of creationism.”
Summers dismissed the idea that any tax policy introduced to encourage U.S. companies to repatriate profits would boost investment and hiring.“The vast majority of the companies who have large overseas cash also have substantial amounts of domestic cash,” he said. “The reality is that cash that is brought home will be used to pay dividends, to buy back shares, to engage in mergers and acquisitions, to rearrange the financial chessboard, not to invest in large amounts of new capital. It is a chimera to suppose that there will be large increases in capital investment as a consequence of that repatriation.”
Lawrence Henry's amazing analytical abilities regarding economic issues are beyond reproach, so we should all heed his brilliant pronouncements. And since he believes Trump's economic ideas "are so far out of the mainstream of any kind of responsible economic thinking that they are the economic equivalent of creationism", let's take a look at what a "responsible" Harvard PHD economist believes.
Larry is one of the founding members of the Committee for the Advancement of Negative Interest Rates. Larry concocted, excuse me, developed this brilliant economic policy with his three brothers, Moe, Curly, and Schemp. And it has certainly been a roaring success worldwide, as can be evidenced by the booming growth in all of the countries which have unleashed, excuse me, enacted his crack economic team's policy. Larry, Moe, Curly, and Schemp also have another foundation - The Society for the Complete Banning of Physical Cash, a.k.a., The War on Cash Society.
Henry's magnificent abilities as a hedge fund manager allowed him to have great input into Harvard's endowmentfund. Professor Summer's acumen led to a mere $1.8 billion loss in the financial crisis, but who's counting.
And Lawrence loves the idea of big banks, and he trusts them to understand complex economic and market situations. In 1998 hetestified before the Senate that derivatives regulation wasn't necessary because Wall Street could be trusted to regulate itself - no prob. He also pushed to repeal the Glass-Steagall Act, because, well you know, we can trust Wall Street to regulate itself.
So these are the views, theories, and actions of another "responsible" PHD economist who has never accomplished a darn thing in his life.