Larry Summers Quietly Changes Tune on Inflation, Admits It’s Transitory

November 16, 2023

Larry Summers Quietly Changes Tune on Inflation, Admits It's Transitory

Today, former Treasury Secretary Lawrence Summers reversed his position entirely, telling Bloomberg that “transitory factors were pushing inflation up from bottlenecks that are now mean reverting and are pushing inflation down.”

Groundwork’s Acting Executive Director Kitty Richards responded to this blatant reversal and called for the media – and all those who propped up Summers’ misleading predictions – to hold Summers accountable:

“Larry Summers has spent the past two years weaponizing fears of persistent inflation against American workers and families and our clean energy transition, and deriding the many economists who held a different view. Now, exactly two years after calling for ‘Team Transitory’ to ‘stand down,’ it is not enough for him to simply switch sides without reckoning with the damage these arguments have caused.

“The 10% unemployment that Summers repeatedly called for would have decimated the labor market and plunged millions of families into deeper precarity. We never had to throw millions of people out of work under the banner of price stability. Yet Summers pushed this false bargain for years, urging harsh rate hikes at the expense of workers and families.

“The economic evidence is clear: Summers’ prescriptions were not only misguided, but deeply dangerous. It’s time for Larry Summers to stand down – and for the rest of us to stop listening.”