As the economy continues its fitful recovery, complicated by supply bottlenecks that temporarily raise some prices, we are likely to hear more calls for the Fed to tighten money and for the Biden administration to pull back on public investments. You’d expect this from partisan Republicans. Even worse are the Wall Street Democrats.
Exhibit A is Larry Summers. Exhibit B is Steven Rattner.
Rattner is the quintessential Wall Street Democrat. He runs a private finance company, is personally worth at least hundreds of millions, and effortlessly mixes his roles as financier, influence broker, and commentator, as a contributing opinion columnist to The New York Times. A recent oped by Rattner displays the Wall Street case for more austerity and less growth. The essay is worth unpacking, argument by argument.
Read Full Article »