On with Kara Swisher Larry Summers on the Politics & Economics of Envy
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Apr 20, 2023 
Larry Summers, a renowned economist and former Treasury Secretary, dives into the complexities of inflation and the fallout from the Silicon Valley Bank collapse. He elaborates on the necessity of a politics of opportunity over envy, advocating for more visionary figures like Jeff Bezos and Bill Gates in America. Summers stresses the importance of institutional learning in navigating economic challenges and the critical role of thoughtful regulation and industrial policy in fostering stability.
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The Fed's Mistakes
- The Federal Reserve made a significant mistake by not recognizing the inflation threat earlier.
- They compounded the error by not acting on Silicon Valley Bank (SVB) quickly enough.
The Fed's Communication
- The Fed should avoid overly confident pronouncements and forecasts about the future.
- Instead, they should communicate with measured pronouncements, acknowledging uncertainty like the Delphi oracles.
Corporate Profits and Inflation
- Increased demand, not corporate greed, drives high profits during inflation.
- Price controls are not a good solution and could lead to shortages and evasion.