"Relief will soon give way to alarm about the U.S. economic and fiscal future," writes Larry...

"Relief will soon give way to alarm about the U.S. economic and fiscal future," writes Larry Summers of the debt agreement. The man whose hand shaped current U.S. conditions as much as anybody's believes jobs and growth are of far more import than the budget deficit right now. His prescription: save $1T by ending the Bush tax cuts, and juice the economy by extending the payroll tax cut.

Comments (15)
  • Topcat
    , contributor
    Comments (582) | Send Message
    I agree with Larry...BTW, Obamacare actually lowers the deficit by year 10...it has really good long term effects...
    2 Aug 2011, 05:57 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2241) | Send Message
    That estimate assumed a GDP of 3.5% and tax breaks would be repealed. It also showed a substantial increase in costs to employers and individuals with no cost control. Why do you think there have been massive waivers issued to companies and most notably Union healthcare plans? No real cost savings….except a removal of funds from medicare and shifting to O care. It's a massive nightmare.
    2 Aug 2011, 06:01 PM Reply Like
  • spald_fr
    , contributor
    Comments (2814) | Send Message
    Sure, everyone dies sooner under 0bamaCare and, וואלה!, costs come drastically down.
    2 Aug 2011, 06:01 PM Reply Like
  • catamount
    , contributor
    Comments (388) | Send Message
    Just ask Papaswamp, the world will soon end. Run for your lives!
    2 Aug 2011, 06:10 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2241) | Send Message
    naw the planet will be fine.
    2 Aug 2011, 06:36 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3527) | Send Message
    Ain't funny McGee. The models Obamacare is based on include rationing and euthanasia.
    2 Aug 2011, 07:55 PM Reply Like
  • Henry Buttal
    , contributor
    Comments (404) | Send Message
    Summers says nothing new here, and apparently didn't believe enough in what he was doing to remain as an advisor to the Administration.


    Nothing to see, move along....
    2 Aug 2011, 06:07 PM Reply Like
  • Russ Winter
    , contributor
    Comments (691) | Send Message
    Larry Summer's kleptocratic spiel will soon morph from Bush's tax cuts repeal (not doable) to paying for the payroll tax with a tawdry deal to raise a few token dollars on a tax repatriation deal, mark my words.
    2 Aug 2011, 06:09 PM Reply Like
  • Hubert Biagi
    , contributor
    Comments (936) | Send Message
    Ah, the fatman comes out of lurking to defend his failed policy. $1T by ending the Bush tax cuts? That's still just a rounding error. Get real Larry.


    Over the last fifty years, this country has spent itself into bankruptcy creating a massive entitlement state. Trouble is, it turns out, government's job is NOT to guarantee free mortgages, free health care, free daycare, food stamps, unlimited unemployment checks, etc., etc., etc. Why? It simply doesn't work. It makes more and more people wholly dependent on big government. Unfortunately, more and more voters have become hooked on the notion, that only big government can solve the problems of our society. After all, it's easier that way, isn't it? That way, the individual can ignore their personal responsibilities, because the government will take care of it for them.
    2 Aug 2011, 06:22 PM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
    I hope they do repeal the Bush tax cuts...because they will hit the middle class too....but of course they never mention that.....so when they figure out the lie...then we can get back to work....that is if you have a job...those "rich" folk might go Galt.....
    2 Aug 2011, 06:22 PM Reply Like
  • User 487974
    , contributor
    Comments (1101) | Send Message
    What A Freakin' Idiot, and the nerve?
    Man ,nothing like trying to rub our nose in it,hey Larry?
    You should grab, Christina Rohmer, Jared Bernstein and the rest of your former minions and go somewhere and repent for the progressive/socialist sins you have wrought on our fair land!


    You and Krugman were and are STILL wrong!
    Go away and let this wonderful country take its pain and heal!
    You and the rest of the progressives{take John McCain} with you, are the problem. The people, we are the answer! Look to each other, look to God! We are a "GREAT" country! We are an "EXCEPTIONAL" country! Hey Larry/Paul, ever hear this?


    "Rebellion to tyrants is obedience to God", do you know the meaning behind that phrase?
    Nah! I doubt you would!


    May God bless this wonderful little experiment in freedom we call America
    2 Aug 2011, 06:55 PM Reply Like
  • Hendershott
    , contributor
    Comments (1891) | Send Message
    Yep, tax break for the working stiffs. The people who actually make this a great country. The people who watch NASCAR and baseball. The people who actually take care of their own aging parents or grandparents, have holiday picnics in public parks, drive $15k cars and have kids in the infantry. No tax breaks for people with $6k shower curtains, kids in private schools, spend the holidays in the Caribbean, drive $50k cars and have a flotilla of tax attorneys to avoid what little tax they have to pay. If the working stiffs don't have any discretionary income, the economy grinds to a halt, the merry go round stops going around and the train falls off the tracks. The top 10% of the income bracket with 75% of the unadjusted gross income actually don't constitute a functioning economy. The other 90% of the population have to be included or it's back to dark ages economics. 
    2 Aug 2011, 07:43 PM Reply Like
  • Windsun33
    , contributor
    Comments (4440) | Send Message
    Let me get this straight - in short Summers' plan is to cut taxes and raise taxes - right?
    2 Aug 2011, 09:01 PM Reply Like
  • Hendershott
    , contributor
    Comments (1891) | Send Message
    Yes, extend the payroll tax cut and let GB's tax cuts expire, at least for those above some income level. Progressive tax policy, you know.
    3 Aug 2011, 12:58 PM Reply Like
  • jw4golf
    , contributor
    Comments (339) | Send Message
    no one listened to summers when he was in the admin so why now?
    2 Aug 2011, 10:34 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs