Summers: ‘Main Risk’ Is Overheated Economy, Which Can’t Be Fixed ‘Without Doing a Lot of Damage’

During an interview aired on Friday’s edition of PBS’ “Firing Line,” economist Lawrence Summers stated that the “main risk” to the economy is that it will overheat, “And then once it overheats, it’s going to be hard to put out the fire without doing a lot of damage and causing a lot of problems.”

Summers stated, “I do think you have to look at a balance of risks. And six months ago, the balance of risk was, who knew what was going to happen in the pandemic. There were a lot of people unemployed, the economy might slip back into recession. Today, with the biggest labor shortages in history, with growth in the second quarter predicted to be above 10% by many people, a recession’s not the main risk. The main risk is that our economy’s going to overheat. And then once it overheats, it’s going to be hard to put out the fire without doing a lot of damage and causing a lot of problems. And so, I’d like to see us shift towards a policy concern.”

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