Monday, December 1, 2008

Lawrence Summers: Competing Views

Summers a smart choice

...in choosing to keep the 53-year-old economist close to his side, Obama made the calculation that he needs this centrist voice to calm markets - and he needs a counselor with Summers' proven ability to sense economic dangers lurking around the corner.

At Monday's press conference, Obama called Summers, appointed director of his National Economic Council, "one of the great economic minds of our times....His thinking, writing and speaking have set the terms of debate." The President-elect added that he plans to "rely heavily on his advice as we navigate the uncharted waters of this economic crisis."...

Summers' appointment, alongside that of Geithner at Treasury, marks a continued centrist path for the President-elect, and promises that an Obama White House will be the target of incoming fire from both ends of the political spectrum. If Summers wants to limit the future role of Fannie Mae and Freddie Mac - both now under government conservatorship-- he'll have to battle liberal-left affordable housing lobbyists and their powerful Democratic advocates like House Financial Services Committee Chair Barney Frank...

read the CNN story

Larry Summers: Heavyweight Centrist or Lightweight Leftist

Summers apparently does not see, or if he does see, does not care, that in presenting his proposal for redistribution, what he is urging is armed robbery on a massive scale. That is the essence of any policy of "redistribution," whether advocated by Summers and Obama or by Lenin, Stalin, or Mao...

A proposal this hare-brained makes Summers come across more as an intellectual lightweight than as any kind of brilliant thinker able to identify the errors in others' thoughts...

Summers should be fired. He's too shallow and ignorant and his ideas too evil for him to serve in the United States Government in any capacity. Although generally viewed as a prominent professional economist, his actual knowledge of the subject is minimal. This conclusion follows from the fact that the essential subject matter of economics is capitalism. And Summers' ideas on redistribution reveal that he fails to understand the nature of the most essential feature of capitalism, namely, private ownership of the means of production and the indispensable role it plays in the standard of living of the average person.

His views may qualify him to be an economic advisor to Hugo Chavez of Venezuela or Robert Mugabe of Zimbabwe, but certainly not to be an economic advisor to the President of the United States. Before anyone assumes that position, he should know and understand the ideas of Ludwig von Mises, who is far and away the leading theorist of capitalism, and whose works explain its operation as it is has never before been explained. In the absence of extensive knowledge of Mises, one is, simply put, an economic ignoramus, irrespective of the degrees, awards, and public acclaim one may enjoy.

read the entire essay


My thoughts: Reisman is correct. Summers is portrayed as a moderate, but he is a redistributionist leftist.

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