Larry Summers: Why He Shouldn't Be Treasury Secretary

Josh Marshall gives a few reasons why Larry Summers should not be Barack Obama's Treasury Secretary:

Just at the level of optics, since the economy is issue number one right now (and not just the real economy of jobs and living standards but the financial architecture itself) and you're trying to look forward not back, why would you pick someone for Treasury who was not only in the Clinton administration but was actually Treasury Secretary in the Clinton administration. Not understanding that.

Next, management shortcomings and controversial statements about women's brains that got him canned as President of Harvard.

And on top of that, the new Treasury Secretary will be charged with instituting a beefed up framework of financial sector regulation. But Summers was a key player in the 1990s deregulatory consensus that laid the groundwork for a lot of these problems. Not that that makes him verboten -- a lot of other people did too. But it does create an element of of cognitive dissonance going into the job.

I'm not sure any of these strikes against would be determinative in themselves. Perhaps each taken together would not be if the crisis of the moment demanded Summers. But is he really the only one available?

Kim Gandy, President of the National Organization for Women, has also criticized the potential pick.

"It's very important that whoever is in key positions understands the importance of women to this economy -- and that the impact of wage inequality for women has bearing on the overall economic inequality in our society," she said. "I don't see [this] on the agendas of most of the candidates being suggested. While Larry Summers has talked about income inequality, he doesn't seem to get it that a lot of that is related to the wage gap between men and women."

Read more about Obama's Cabinet here.

Comments

[StrongEagle]

Who wrote this drivel? A seventh grader could make more succinct arguments.

[ProgressiveChick]

Paul Krugman!! 'Nuff said!

[boing007]

Anyone in the House or the Senate?

[carmina]

My picks:
1, Paul Krugman. The man has a Nobel, for crying out loud.
2. Robert Reich. I agree with another poster who said that whenever he hears Reich speak, he either teaches him something or says something he agrees with. Reich makes so much sense.
3. Robert Kuttner. Brilliant.

We need somebody who saw this economic minefield for what is was before it blew up. I believe these three fill the bill.

[boing007]

What about Robert Reich?

[boing007]

Summers sounds like a bummer.

[RoloTomassi]

NeoLiberal economists are the driving force at the core of NeoConservatism; Summers is clearly a true believer, another cookie-cutter, Friedman-indoctrinated NeoLiberal economist.

When such is brought to light, why is there more to discuss?

IMO, Summers is a very bad choice.

[waitforme]

[I just saw this below my comment. It bears repeating:]

"Dear President Elect Obama,

"Larry Summers said women can't do math and that toxic waste should be stored in the third world, since folks there had short life expectancies anyhow. While Summers was head of the World Bank, I saw first hand the failure and corruption of his aid packages that increases exploitation and land theft from third world farmers, supported corrupt regimes and corrupt first world contractors, and furthered the impoverishment of people and the environmental ruin of their communities. How can you take such a racist and misogynistic man like Larry Summers seriously and offer him the dignity of space on your President elect advisory committee on the economy? As a field consultant for numerous development organizations, Ph.D., and former academic at a top liberal arts college, I see nothing but failure from Summer's deceitful policies and practices.

"As a woman who now makes a living "doing the numbers", a successful financial advisor specializing in socially responsible investing, I am appalled at Summer's comments on women's mathematical abilities. How would you feel if he said black men can't do math? How would you feel if he rationalized dumping toxic waste on South Chicago for that matter? My husband, a math professor and former university dean, is equally offended by Summers and your placing him on your committee......"

[waitforme]

Sheila Bair, of the FDIC, has been heavily touted to be Treasury Secretary. She has been said to have good values, is financially experienced and is a Republican. See remarks on DemocracyNow.org's transcript today, Novemeber 7th later in the day.

What about Robert Reich? Virtually every time I hear his comments on the economy on NPR I agree with him -- he either teaches me something or he is saying what I have been thinking. How about him?

Larry Summers has a lot of bad press. And for good reason. His inability to treat people respectfully is well-documented -- see ALL the incidents at Harvard, not only that he doesn't think women can do math but his fight with Cornell West and with others. He is touted as 'a great financial mind'. But, as we have seen, Treasury Secretaries need to have a just world view, grounded in fair values. Summers has not demonstrated this. Summers, as Treasury Secretary in the Clinton administration effected DE-regulation, which has come back to haunt all of us. We don't need a Larry Summers, we need someone who will pay attention to the needs of such people as those whose homes are being foreclosed on -- there are many ways to do this which will benefit lenders as well as home owners and this needs not to be ignored -- and generally get to work developing firm, just and fair regulations for both the banks and people who use banks.

[cornflower]

OMG - Paul Volker - 81 YEARS OLD??? Larry Summers???

My elation is rapidly deflating. All we went through and we are going backwards! OMG!

[fredamae]

No, Obama is choosing his people based on skills and qualifications...Not MSM Popularity ratings.
Look at the reasons people are posting and calm down...Most of them are simply MSM creations and perhaps, just perhaps, Obama is looking at hard core qualifications instead of a popularity smear.

Perspective....we need to exercise perspective and Not lose it.
We have to stop with the divisive manipulation attempts and this is but one of many more "crap" to be thrown out there. Old habits are hard to break. We must learn the difference between rationality and BS.

We may need to put the car in reverse in order to get out of the rut we are in.

No single person is going to be able to please All the People All the time. Lets give him a chance. He Knows these people on a Level we Never will.

[Caliwoman]

Dear President Elect Obama,

Larry Summers said women can't do math and that toxic waste should be stored in the third world, since folks there had short life expectancies anyhow. While Summers was head of the World Bank, I saw first hand the failure and corruption of his aid packages that increases exploitation and land theft from third world farmers, supported corrupt regimes and corrupt first world contractors, and furthered the impoverishment of people and the environmental ruin of their communities. How can you take such a racist and misogynistic man like Larry Summers seriously and offer him the dignity of space on your President elect advisory committee on the economy? As a field consultant for numerous development organizations, Ph.D., and former academic at a top liberal arts college, I see nothing but failure from Summer's deceitful policies and practices.

As a woman who now makes a living "doing the numbers", a successful financial advisor specializing in socially responsible investing, I am appalled at Summer's comments on women's mathematical abilities. How would you feel if he said black men can't do math? How would you feel if he rationalized dumping toxic waste on South Chicago for that matter? My husband, a math professor and former university dean, is equally offended by Summers and your placing him on your committee.

We invested $1500 in your campaign. We did not do it so you could allow Summer's irrational, top down, discriminatory world view to receive legitimacy on your advisory group.

[JenMI]

Apparently you are unaware that Summers has been a TOP adviser to the Obama campaign for several months. Where were your cries of outrage then? Where were your objections to his economic plan? Where were your cries of chauvinism then? Your "liberal" academic credentials give you away.
From one feminist to YOU, from one liberal to YOU.....Drop your old, misplaced feminist ideals that insist the world see everything from your point of view.. join the real 21st century feminist movement where we try to find solutions, work with men, learn from men, support our women co-workers and accept all others....better yet go burn your bra, come away from your high-minded vacuum and join the real world. We WANT solutions.

[waitforme]

The above commenter is obviously no feminist. This comment is outrageous.

-- Evidently s/he didn't even read the whole comment above.

[mgilbert]

This comment contains contradictions. If someone is unaware of something (Summers advising Obama), then how CAN they be outraged? Very poor reasoning.

[Bluebayou101]

Re your comment about toxic waste, here is the link if anyone cares to read it:

http://www.whirledbank.org/ourwords/summers.html

The posts here have mentioned many people who would be better as Treasury Secretary especially now that the post has become so important.

[Novista]

Golly, I'm glad to see others suggesting Nouriel Roubini.

Sheila Bair would be good, too. And, though it wouldn't happen, David Walker would be one who consistently spoke truth to power.

[Chaucea]

*is an unabashed Nouriel Roubini fan girl!*

[oddlyamerican]

Two reasons:

i) NAFTA - The immediate result of which was to put one m,illion Mexican farmers out of work, sending many into poverty and much more to the US where they form an underclass with no legal recourse.

ii) The repeal of the Glass-Steagal Act. Summers was a major advocate of this disastrous measure that has greatly contribute to the current state of economic affairs. Speaking of which....

iii) Deregulation of credit markets.

I don't care what he said about who but his actions have demonstrated him to be a man of the money markets and not of the people.

Summers and Rubin in government once again is a scary thought indeed.

[ErnestineBass]

Summers and Rubin is like "Back To The Future"...only in reverse. No. FN. Way.

And don't even get me started on Goolsbee and the rest of the U of Chicago gang...

[Transcendentobserver]

Oh, of course, perish the thought! Obviously a person whose economic and financial skills were instrumental in leading the nation from an international recession, the depth of which is not unlike current international crises.], in less than 30 months, one from which Japan took nearly a dozen years to overcome. His management of the Treasury under Pres. Clinton grew the economy from its nadir in 1992 consistently during the two terms of the Clinton administration beginning with a trillion dollar deficit at its inception into a trillion dollar surplus at its apex which was Clinton's legacy to Bush. 3/4ths of that time, it was with a hostile Republican Congress. Those policies created 23,000,000 new jobs, 5,000,000 new businesses while holding inflation carefully under control.

Piddling accomplishments indeed when compared to a couple of offensive remarks relating to his post governmental academic career which in academia are often posited to encourage thought and debate.

And, what the Hell, why would the Obama Administration review and adopt parts of an economic policy just because it worked so well until emasculated through failure to regulate by the NeoCons? We are, after all, all about change for its own sake.

[suemag]

One reason: He's sexist

[JenMI]

get over it...not a good enough reason. And I am a feminist.

[waitforme]

Read -- again or the first time -- Caliwoman's post above. Sexism is not the point here, or not most of the point. Caliwoman describes Summers' many many flaws. He is not the kind of person an Obama administration should put forth to handle the extreme destruction left by the Bush administration who was both asleep at the wheel and, with Larry Summers in the Clinton administration, caused the de-regulation which effected the recession and millions of home foreclosures we have to deal with now.

Miss JenMI, I do not recognize you as any kind of feminist. A feminist takes into account the whole system, all events and facts which impinge on a problem. You are physiologically pissing me off with our inexplicably aggressive, thoughtless, unthoughtful posts -- e.g., 'why don't you go burn your bra?' -- said to an informative post. If you say another word, why not explain where all your anger is coming from and what you know or want to say about Larry Summers, and why you think Caliwoman is wrong in what she says? Can you refute her claims? Be specific. Your throwing junk out the way you do reminds me of chimps in the zoo throwing their feces into the faces of standers-by. That is, maybe you have good points -- chimps do -- but you have not articulated them.