THE PARAGRAPHS OF THE DAY

Today’s paragraphs come to us from Lawrence H. Summers.

Before showing you these paragraphs, however, allow me to detail Mr. Summers’ credentials, via his short-form professional biography from wikipedia.com:

Lawrence Henry Summers (born November 30, 1954) is an American economist, former Vice President of Development Economics and Chief Economist of the World Bank (1991–93), senior U.S. Treasury Department official throughout President Clinton‘s administration (ultimately Treasury Secretary, 1999–2001), and former director of the National Economic Council for President Obama (2009–2010). He is a former president of Harvard University (2001–2006),[3][5] where he is currently (as of March, 2017) a professor and director of the Mossavar-Rahmani Center for Business and Government at Harvard’s Kennedy School of Government.

That is impressive.  Hugely impressive.  This man must know everything there is to know about the state of our economy.  And to listen to him is roughly tantamount to listening to God’s Treasury Secretary, right?

Well, maybe.  But before you answer, please read the following paragraphs – which come from Mr. Summers’ article for the Washington Post, Dated May 23, 2017:

Details of President Trump’s first budget have now been released. Much can and will be said about the dire social consequences of what is in it and the ludicrously optimistic economic assumptions it embodies.  My observation is that there appears to be a logical error of the kind that would justify failing a student in an introductory economics course.

Apparently, the budget forecasts that U.S. economic growth will rise to 3.0 percent because of the administration’s policies — largely its tax cuts and perhaps also its regulatory policies.  Fair enough if you believe in tooth fairies and ludicrous supply-side economics.

Hmmm.  Are you sure, Lawrence H.?

If so, what are we to make of the following chart, which shows GDP growth by quarter for the past five years?

United States GDP Growth Rate

Wait a minute.  That chart shows GDP growth has exceeded 3% in three of the past four quarters.  And that average GDP growth for the past year is 3.25%.

Must be one of those “tooth fairies and ludicrous supply-side economics” fantasies…

…or…

maybe, back in 2017, Mr. Summers blew off some partisan steam that I have no doubt he now regrets.

Lawrence H. Summers wins Paragraphs Of The Day “honors” for showing that, brilliant as he may be, he is just as capable of getting things wrong as his countless other pals on the hate-Trump side, who said the same things…and have now been proven just as wrong as he has.

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