{"id":472435,"date":"2022-07-08T22:36:55","date_gmt":"2022-07-08T19:36:55","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/larry-summers-says-steep-joblessness-needed-to-beat-inflation\/"},"modified":"2022-07-08T22:36:55","modified_gmt":"2022-07-08T19:36:55","slug":"larry-summers-says-steep-joblessness-needed-to-beat-inflation","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/larry-summers-says-steep-joblessness-needed-to-beat-inflation\/","title":{"rendered":"#Larry Summers says steep joblessness needed to beat inflation"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2583f225b6c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2583f225b6c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/larry-summers-says-steep-joblessness-needed-to-beat-inflation\/#%E2%80%9CLarry_Summers_says_steep_joblessness_needed_to_beat_inflation%E2%80%9D\" >&#8220;Larry Summers says steep joblessness needed to beat inflation&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CLarry_Summers_says_steep_joblessness_needed_to_beat_inflation%E2%80%9D\"><\/span>&#8220;Larry Summers says steep joblessness needed to beat inflation&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Former Clinton Treasury Secretary Larry Summers is defending his comments from last month in which he claimed that millions of Americans may need to lose their jobs in order for inflation to come under control.<\/p>\n<p>Summers, who has emerged as a chief critic of the Biden administration\u2019s economic policies, told the London School of Economics recently: \u201cWe need five years of unemployment above 5% to contain inflation \u2014 in other words, we need two years of 7.5% unemployment or five years of 6% unemployment or one year of 10% unemployment.\u201d <\/p>\n<p>Summers said those figures were \u201cremarkably discouraging\u201d compared to the Federal Reserve\u2019s prediction that it could tame inflation while keeping unemployment at or around 4%.<\/p>\n<p>Summers said Friday that unemployment, which is currently at 3.6%, needs to rise to 5% in order to bring down inflation. Summers <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/slate.com\/business\/2022\/07\/larry-summers-massive-unemployment-fed-inflation.html?via=rss_socialflow_twitter\">told Slate magazine<\/a> that his statement was a \u201cback of the envelope calculation.\u201d<\/p>\n<p>\u201cA calculation like this is highly uncertain and every business cycle is different,\u201d Summers told the online <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> site. <\/p>\n<p>\u201cSo I certainly didn\u2019t mean to suggest that there was any iron law of this being necessary.\u201d\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"765\" height=\"1024\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-04.jpg?w=765\" alt=\"Summers has been criticized by progressive Democrats for his comments.\" class=\"wp-image-22977696\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-04.jpg?quality=75&amp;strip=all&amp;w=1530 1530w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-04.jpg?quality=75&amp;strip=all&amp;w=1148 1147w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-04.jpg?quality=75&amp;strip=all&amp;w=765 765w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-04.jpg?quality=75&amp;strip=all&amp;w=383 382w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-04.jpg?quality=75&amp;strip=all 1024w\" sizes=\"auto, (max-width: 765px) 100vw, 765px\"\/><figcaption>Summers has been criticized by progressive Democrats for his comments.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>He added: \u00a0\u201cBut I thought a calculation like this was probably a better <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach for thinking about it than the Fed\u2019s approach.\u201d<\/p>\n<p>The comments drew an angry response from Rep. Alexandria Ocasio-Cortez, the progressive Democratic Party lawmaker from Queens and The Bronx.<\/p>\n<p>\u201cIt\u2019s reckless to manufacture a recession that would devastate our most vulnerable,\u201d Ocasio-Cortez tweeted.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<iframe loading=\"lazy\" title=\"Secular Stagnation or Secular Stagflation\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/eVZfCLEPXqk?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/p>\n<\/figure>\n<p>Fed Chair Jerome Powell told a forum of European bankers late last month that there\u2019s \u201cno guarantee\u2033 the central bank can tame runaway inflation without hurting the job market.<\/p>\n<p>Powell repeated his hope that the Fed can achieve a so-called soft landing \u2014 raising interest rates just enough to slow the economy and rein in surging consumer prices without causing a recession and sharply raising the unemployment rate.<\/p>\n<p>\u201cWe believe we can do that. That is our aim,\u2033 he said. <\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-wrapper twitter\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">We asked Chair Powell if he agrees with Larry Summers that we need 10% unemployment to reduce inflation. Powell said it&#8217;s unlikely, if we act on supply issues.<\/p>\n<p>10% is 10.5M people, more than 2008. It&#8217;s reckless to manufacture a recession that would devastate our most vulnerable. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/Il40OhAZFx\">pic.twitter.com\/Il40OhAZFx<\/a><\/p>\n<p>\u2014 Rep. Alexandria Ocasio-Cortez (@RepAOC) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RepAOC\/status\/1540077065935912967?ref_src=twsrc%5Etfw\">June 23, 2022<\/a><\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n<p>But the Russian invasion of Ukraine, he said, had made the job more difficult by disrupting commerce and driving up the price of food, energy and chemicals.<\/p>\n<p>US job growth\u00a0increased more than expected\u00a0in June and the unemployment rate\u00a0remained near pre-pandemic lows,\u00a0signs of persistent labor market strength\u00a0that give the Federal Reserve ammunition to deliver another 75-basis-point interest rate increase later this month.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-02.jpg?w=1024\" alt=\"Americans have been saddled with soaring prices of key consumer staples like groceries and fuel.\" class=\"wp-image-22977695\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-02.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-02.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-02.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Americans have been saddled with soaring prices of key consumer staples like groceries and fuel.<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>Nonfarm payrolls increased by\u00a0372,000 jobs\u00a0last month, the Labor Department\u2019s closely watched employment report showed on Friday. <\/p>\n<p>Data for May was\u00a0revised slightly down\u00a0to show payrolls rising by\u00a0384,000 jobs\u00a0instead of the previously reported 390,000.<\/p>\n<p>Economists polled by Reuters had forecast 268,000 jobs added last month. Estimates ranged from as low as 90,000 to as high 400,000.\n                        <\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/07\/08\/larry-summers-says-steep-joblessness-needed-to-beat-inflation\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Larry Summers says steep joblessness needed to beat inflation&#8221; Former Clinton Treasury Secretary Larry Summers is defending his comments from last month in which he claimed that millions of Americans may need to lose their jobs in order for inflation to come under control. Summers, who has emerged as a chief critic of the Biden&#8230;<\/p>\n","protected":false},"author":1,"featured_media":472436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/larry-summers-inflation-03.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[131154,5069,70551,78738,5070,74142,991,88069,5071],"class_list":["post-472435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-7-8-22","tag-economy","tag-inflation","tag-jerome-powell","tag-jobs","tag-jobs-report","tag-joe-biden","tag-larry-summers","tag-unemployment"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/472435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=472435"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/472435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/472436"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=472435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=472435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=472435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}