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Larry Summers: Trump Budget Contains 'Ludicrously Optimistic Economic Assumptions'

Image: Larry Summers: Trump Budget Contains 'Ludicrously Optimistic Economic Assumptions'
Economist Larry Summers (AP)

By    |   Tuesday, 23 May 2017 01:43 PM

Economist Larry Summers blasted the budget proposed by President Donald Trump questioning the logic and basic knowledge of economic principles behind it.

In a column for The Washington Post on Tuesday, Summers wrote that it contained "ludicrously optimistic economic assumptions" as he went on to take apart the foundation upon which it based its economic forecast.

Summers maintained the budget contained "a logical error of the kind that would justify failing a student in an introductory economics course."

"Apparently, the budget forecasts that U.S. economic growth will rise to 3.0 percent because of the administration's policies — largely its tax cuts and perhaps also its regulatory policies. Fair enough if you believe in tooth fairies and ludicrous supply-side economics," Summers wrote.

Trump's budget proposal released on Tuesday calls for repealing and replacing Obamacare, cutting Medicaid, eliminating student loan subsidies, sharply slashing food stamps and cutting $95 billion in highway formula funding for the states. 

Core Medicare and Social Security benefits would remain in place in the budget plan which also includes funding for a new program for paid parental leave as well as a tax overhaul.

Summers claimed Trump's failings were "not just center stage but whole stage" and questioned the capabilities of the administration's economic team.

"How could the secretary of the treasury, the director of OMB and the director of the National Economic Council allow such an elementary error?" he asked.

"The Trump administration has not yet made a significant economic pronouncement that meets a minimal standard of competence and honesty."

Summers has served in a number of capacities in the administrations of former Presidents Bill Clinton and Barack Obama and is currently a Harvard professor at the Kennedy School of Government.

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Economist Larry Summers blasted the budget proposed by President Donald Trump questioning the logic and basic knowledge of economic principles behind it.
larry summers, trump, budget
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2017-43-23
Tuesday, 23 May 2017 01:43 PM
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