September 01, 2007
Summers Calls for Public Investment to Fuel Next Growth
Summers calls for next growth to be based on public investment -- amazing to hear it from Summers. But Johnson notes that the massive debt we've incurred through bailing out the banks may get in the way of that:
Forbearance on banks may work, but at great cost to the taxpayer. And how is that helpful to either to Summers' stated strategy of growth led by further public investment, or - given the existing state of our public finances - to a more plausible strategy of (nonfinancial) technological innovation?