Yesterday Larry Summers published an OpEd that argued the U.S. economy is half way to a lost decade because demand is in decline and we’re not doing enough to revive it.It’s the lack of demand, he argues, that’s caused growth to slow to a crawl pace of 1% on average from 2006 to 2011.
And he thinks that this lack of demand needs to be made up through government measures to stimulate it, from further payroll tax cuts to an expansion of government spending on infrastructure.
Steve Schwarzman obviously read the OpEd.
And he obviously thought it was a joke. Because he brought it up in an executive meeting at Blackstone yesterday.
According to Ben White’s Morning Money,
M.M. hears that at yesterday’s executive meeting, Blackstone chief Steve Schwarzman took a shot at former NEC Chair Larry Summers’ FT column calling for a number of actions to spur job growth, including expanding the payroll tax cut to employers.
“I thought I was looking at a Saturday Night Live script,” Schwarzman said, according to our source. “Who was in charge the past two years?”
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