Larry Summers Says US Economy Not Growing Fast Enough

Former Clinton Treasury Secretary Larry Summers told CNBC Friday the U.S. economy is not growing fast enough.

While American economic growth is getting better and leads the rest of the world, investments need to be made to get the economy stronger, Summers said. “Confidence is the cheapest form of stimulus,” he said on “Squawk Box.”

“We’re not doing well enough. We haven’t had a year of 3 percent [growth] in a very long time in the United States,” he said.

Summers, also a former Obama administration economic advisor, said the U.S. bond market is indicating that investors are worried. “With forward interest rates coming down as much as they have, it suggests concern about underlying growth in this economy.”

The government should be investing more, not less, in the economy, especially with borrowing rates at such low levels, he said. “We’ve got to be doing more to get the economy growing more rapidly and making sure everybody share in that prosperity.”
Summers called for infrastructure investments in antiquated airports and shipping ports, and said tens of thousands schools around the nation need to be improved.
He said private-sector investments need to be made in energy, high-speech Internet and information technology. “Way over three- quarters of the investment that we’re making is private-sector investment.”

The government also needs to address burdensome regulations and policies, Summers said. “It’s important to legislate tax reform in the corporate sector as soon as possible.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza