Larry Summers, the former U.S. Treasury Secretary and Harvard president, is once again making the rounds in elite economic and policy circles, offering opinions on everything from inflation to labor markets. But before welcoming him back with open arms, we must revisit his problematic track record—marked by misjudgments, elitism, and policies that worsened economic inequality.
The Architect of Financial Deregulation
Summers was a key figure in the financial deregulation of the late 1990s, championing policies that led to the 2008 financial crisis. As Treasury Secretary under Bill Clinton, he pushed for repealing the Glass-Steagall Act, which had kept commercial and investment banking separate since the Great Depression. This move allowed banks to engage in risky speculative trading, fueling the subprime mortgage meltdown.
When the crisis hit, millions lost homes and jobs—yet Summers and his Wall Street allies escaped unscathed. Worse, he helped design bailout policies that rescued banks while ordinary Americans suffered.
A History of Tone-Deaf Elitism
Summers’ career is riddled with controversies revealing deep elitism. As Harvard’s president, he suggested women might be biologically less capable in science and math—sparking outrage. His tenure was also marred by clashes with faculty over his dismissive leadership style.
Today, he remains a vocal critic of progressive economic policies, dismissing inequality concerns, opposing student debt relief, and fighting higher minimum wages—consistently siding with corporations over workers.
Getting Inflation (and Much Else) Wrong
Recently, Summers became an inflation hawk, warning that pandemic stimulus would cause runaway price increases. While inflation rose, his predictions were often exaggerated—like claiming the American Rescue Plan would bring “inflationary pressures of a kind we have not seen in a generation.” Yet inflation has since cooled without the catastrophic spiral he predicted.
His economic forecasting credibility is shaky. He failed to predict the 2008 crash, downplayed the housing bubble, and has been wrong on key issues repeatedly. Despite this, media outlets still treat him as an infallible expert.
Why Does He Keep Getting a Pass?
Summers retains influence because his pro-market, pro-elite worldview aligns with those in power. But why should we keep listening? His policies harmed workers, his remarks were prejudiced, and his foresight was flawed.
Time to Move On
Polite society shouldn’t rehabilitate figures like Summers just because they have Ivy League degrees or powerful friends. His legacy includes financial instability, entrenched inequality, and a rigged system favoring the wealthy.
If we want an equitable economy, we need fresh voices—economists who prioritize people over profits and address structural inequities. Summers had his chance. It’s time to stop giving him a platform.
The next time he appears on TV or in an op-ed, remember: this is the man who helped break the economy—and still hasn’t learned.
