Charles W. Eliot University Professor and President Emeritus at Harvard. Secretary of the Treasury for President Clinton and Director of NEC for President Obama
The silence from Harvard’s leadership, so far, coupled with a vocal and widely reported student groups' statement blaming Israel solely, has allowed Harvard to appear at best neutral towards acts of terror against the Jewish state of Israel.
If during the Clinton or Obama Administrations there had been a statement from
@POTUS
or anyone senior official in the morning before the Employment Report it would have been a major scandal—with all sorts of investigations following on.
I think
@JeffBezos
is mostly wrong in his recent attack on the
@JoeBiden
Admin. It is perfectly reasonable to believe, as I do and
@POTUS
asserts, that we should raise taxes to reduce demand to contain inflation and that the increases should be as progressive as possible.
I’m not sure understand the argument for a windfall profits tax on energy companies. If you reduce profitability, you will discourage investment which is the opposite of our objective.
The delayed
@Harvard
leadership statement fails to meet the needs of the moment. Why can’t we find anything approaching the moral clarity of Harvard statements after George Floyd's death or Russia's invasion of Ukraine when terrorists kill, rape and take hostage hundreds of
“We write to you today heartbroken by the death and destruction unleashed by the attack by Hamas that targeted citizens in Israel this weekend, and by the war in Israel and Gaza now under way.” Read the full statement from University leadership.
To be clear nothing is wrong with criticizing Israeli policy past, present or future. I have been sharply critical of PM Netanyahu. But that is very different from lack of clarity regarding terrorism.
Instead, Harvard is being defined by the morally unconscionable statement apparently coming from two dozen student groups blaming all the violence on Israel. I am sickened. I cannot fathom the Administration’s failure to disassociate the University and condemn this statement.
I was very pessimistic about the consequences of utterly irresponsible UK policy on Friday. But, I did not expect markets to get so bad so fast.
A strong tendency for long rates to go up as the currency goes down is a hallmark of situations where credibility has been lost.
Told
@FareedZakaria
on GPS
@CNN
, America’s failure on COVID-19 is almost unimaginable. Heck, if the U.S. had handled the pandemic as well as Pakistan, we would have saved in neighborhood of $10 trillion.
After Friday’s new anti-Semitism task force announcement, I have lost confidence in the determination and ability of the Harvard Corporation and Harvard leadership to maintain Harvard as a place where Jews and Israelis can flourish.
The previously touted advisory committee has
Thoughts at the end of a long week:
Why can’t the greatest economy in the history of the world produce swabs, face masks and ventilators in adequate supply?
I very much hope appropriate statements from the University and College condemning those who launched terrorist attacks and standing in solidarity with its victims will soon be forthcoming.
I think it is a profound failure that Harvard Yard continues to be occupied in clear violation of university policies and rules.
This is the predictable culmination of the Harvard Corporation’s failure to effectively address issues of prejudice and breakdowns of order on our
Today’s CPI report confirms that the US has a serious inflation problem.
Core inflation is higher this month than for the quarter, higher this quarter than last quarter, higher this half of the year than the previous one, and higher last year than the previous one.
I yield to no one in my revulsion at the statement apparently made on behalf of 30 plus
@Harvard
student groups. But please everybody take a deep breath. Many in these groups never saw the statement before it went out. In some case those approving did not understand exactly
He destroys about $500b in equity market value in course of an 11 minute speech.
Destruction roughly doubles as investors take an hour to analyze the speech.
My confidence in Harvard leadership’s ability and will to confront anti-semitism and the demonization of Israel continues to decline. Unfortunately, it is becoming ever clearer why Harvard ranks first on anti- semitism, even as it ranks last on upholding free speech.
Confronting
The most disturbing set of data on America that I have encountered in a long time. This transcends politics.
This is especially scary remembering that demographics were the best early warning on the collapse of the USSR.
Third major Amtrak accident in 2 months. Constant infrastructure breakdowns. Rising death rates for the middle aged. USA showing symptoms, like USSR in 1980s, of decay. This, not demonizing FBI, should be focus of President
@realDonaldTrump
and government.
Harvard Corporation and Administration, despite much public and private advice, are failing in their core obligation to create a safe environment conducive to learning and free expression for all students. When multiple classes are disrupted by students with megaphones and there
When order is restored, the president needs to be impeached and convicted immediately. Right way to signal we are a nation of law. Vote should be unanimous if those in power support American democracy.
NYC spends $38k per pupil and most kids don’t learn at grade level and 100k a year drop out. There are similar stories across the country. This should be the focus of American education policy debate not the nuances of admissions policies at elite schools.
Harvard Business School and Harvard Medical School have aggressively and effectively addressed issues raised by Hamas terror and subsequent anti-Semitic speech. The Harvard University response is not nearly as strong. This is very unfortunate at a time of moral crisis.
Trump's proposal to replace income tax revenue with revenue from tariffs would be the worst macroeconomic policy proposal in U.S. history.
Trump's proposal has the potential to do enormous damage to the competitiveness of every US exporter, to do huge damage to all kinds of
Former US Treasury Secretary
@LHSummers
says that a proposal to replace income tax revenue with revenue from tariffs would be the most inflationary proposal he has seen in his lifetime.
Watch Wall Street Week in one hour on Bloomberg TV
I am sorry to see the
@nytimes
taking MMT seriously as an intellectual movement. It is the equivalent of publicizing fad diets, quack cancer cures or creationist theories.
I am pretty cynical, and hardly anti-business in general, or private equity in particular, but I am appalled by the end stages of the Senate bill’s passage.
There is no legitimate public policy argument for the maintenance of carried interest or
@SenJohnThune
/
@SenatorSinema
's private equity carve out from the bill. It makes me despair of the general interest above the special interest.
I am certainly no left wing ideologue, but I think something wrong when taxpayers like me, well into the top .1 percent of income distribution, are getting a significant tax cut in a Democrats only tax bill as now looks likely to happen.
.
@realDonaldTrump
has at times suggested that he cannot turn over returns because they are under audit. This is wholly fictitious, as there is no such IRS rule, practice or even suggestion with respect to returns under audit.
There has never been a presidential platform so self-evidently inflationary as the one put forward by Trump. I have little doubt that with the Trump program, we will see a substantial acceleration in inflation.
Why can’t we give reassurance that the University stands squarely against Hamas terror to frightened students when 35 groups of their fellow students appear to be blaming all the violence on Israel?
We show that if we make an effort to reconstruct the CPI of Okun’s era—which would have had inflation peak last year around 18%, we are able to explain 70% of the gap in consumer sentiment we saw last year. 8/N
I was very disappointed that the Harvard Law Student Government endorsed divesting in Israel. This following on what the Harvard Graduate Student Union did some time ago illustrates that there is a pervasive prejudice problem on the Harvard campus.
I am very concerned that we may headed into a new era of Brandeisian populist antitrust policy that will make the US economy more inflationary and less resilient.
I was very glad to join now more than 250 colleagues in signing this letter regarding
@Harvard
's response to the Hamas attacks. I am very glad that President Gay has now denounced Hamas terrorism and distanced the University from the appalling student group statement. I hope
More than 100 Harvard faculty denounce "false equivalency between attacks on noncombatants and self-defense against those atrocities."
The conflict is complex but "the events of this week are not complicated. Sometimes there is such a thing as evil"
Even when elections didn't go my way, I always thought the system was robust and that pendulums swing. I do not feel that way about the prospect of a Trump presidency. I think there is a substantial risk that it would be immensely destructive because it moves the conversation
The United States faces serious long-run fiscal challenges. But the decision of a credit rating agency today, as the economy looks stronger than expected, to downgrade the United States is bizarre and inept.
This powerful letter is in my view right. I am very disappointed in the response of most leading American universities, including Harvard, to the events of October 7th. Any university with an anti-bullying policy needs to consider what has gone on.
The Association of University
Why, with hundreds of thousands of Puerto Ricans suffering after a terrible hurricane, hasn’t the
@JoeBiden
Administration authorized a Jones Act waiver that would make available 300,000 barrels of diesel fuel?
As the Fed prepares to meet, there is a growing chorus--both among political figures and economists-- that the Fed should pause very soon for fear they will throw the economy into recession, given the lagged response of monetary policy. I believe this advice is badly misguided.
Now after President
@JoeBiden
's withdrawal it is time for the focus to shift to candidate Trump’s rampant dishonesty, demagoguery and dangerousness. His economic program would undermine the economic security of tens of millions of Americans and our national security. Partisanship
The important test for elite colleges in this era is their overall contribution to opportunity in America.
No more legacy admissions.
No more special admissions for people who've been coached extensively to be good at aristocratic sports.
Expand their class sizes so that
"The important test for them in this era is their overall contribution to opportunity in America," former Treasury Secretary Larry Summers says on US universities following the SCOTUS decision striking down affirmative action.
Watch Wall Street Week:
I mourn today's vote in Israel. It is a reminder of a tragic lesson of history: great nations are brought down more often by internal decay than external threats.
As 2024 approaches, I hope Americans will heed this lesson and resist the siren song of populist extremism
Another 20 percent cut in IRS auditing. America is giving away tens of billions a year to tax cheats by cutting the IRS, even as its responsibilities grow. This is madness. via
@WSJ
I think the best way to relieve student debt would be to allow it to be discharged in bankruptcy. I’d support this reform.
It would also penalize other private creditors, unlike government debt relief that would in part subsidize them.
SVB committed one of the most elementary errors in banking: borrowing money in the short term and investing in the long term. When interest rates went up, the assets lost their value and put the institution in a problematic situation.
Former Treasury Secretary Larry Summers joins CNN's
@wolfblitzer
to discuss what errors he thinks Silicon Valley Bank made, and what can be done to prevent future bank failures. Watch more:
The emerging claim that antitrust can combat inflation reflects “science denial”. There are many areas like transitory inflation where serious economists differ. Antitrust as an anti-inflation strategy is not one of them.
If you look at both Henry Kissinger and Charlie Munger you see the power of staying curious. They stayed with it to the very end. I think their curiosity, their love of reading, their love of discussion, their love of argument was part of what caused them to flourish for so very
It is now confirmed that the American political center has held. There is a real chance that the terrifying anti-democratic fever is breaking. Now is a time when the country can move forward to create more prosperity and security for all.
If it is a fairness argument, I don’t quite follow the logic since even with the windfalls Exxon has underperformed the overall market over the last 5 years.
Today, Goldman’s CEO received a 20 percent raise to $27 million. Apart from the juxtaposition with the worst American health disaster in a century, there is the fact the stock is down more than 35 percent during the last year.
If the
@federalreserve
does what's necessary to contain inflation, I think a slowdown is likely to come. The odds on that happening sometime in the next 12 months I think are pretty good, perhaps 70%.
My full interview w
@DavidWestin
last night
@BloombergTV
I was delighted to see my Alma mater MIT eliminate required diversity statements. Of course achieving a diverse faculty, including on ideology, is important but requiring statements of fealty from faculty job candidates is an affront to almost every academic freedom value.
I hope the Administration does not contribute to inflation macro economically by offering unreasonably generous student loan relief or micro economically by encouraging college tuition increases.
I don't know why
@federalreserve
is in such a hurry to be talking about moving towards the accelerator. We've got unemployment, if anything, below what they think is full capacity. We've got inflation, even in their forecast, for the next two years above target. We've got GDP
Policy debate was an important and formative experience for me. It makes me very sad to see it taken over by political posturing. Many young people will miss out on something very positive.
In my Tweet on Monday I made the mistake of linking Professor Rashid Khalidi with antisemitism. While I disagree with Prof. Khalidi and have deep frustrations with Harvard’s actions since October 7th, my comments were inappropriate. I have reached out directly to Prof. Khalidi to
For the rest of 2022, any private equity leaders purporting to speak about how private equity is or should be socially responsible should be asked what their firm has done directly or indirectly to support the loopholes here.
I just learned
@HouseGOP
's first initiative may be to protect tax cheats by trying to rescind last year’s investment in IRS modernization. On what sane ground can they object to restoring audit rates for millionaires when they have fallen by ~80% in the last decade?
@IRSnews
#IRS
Seeing POTUS
@realDonaldTrump
comments and their disconnection from reality, the VP and the Cabinet should preempt impeachment by invoking the 25th Amendment. Last chance for those who have been sycophants to get to right side of history.
Markets are now suggesting the highest risk of recession since 2011. Only slightly less than half over the next year. The collapse in medium and long term interest rates is ominous.
To do a tax cut calculation taking no account of the adverse consequences of the budget deficit is professional malpractice.
@Lawrence
@TheLastWord
#TCJA
There is some social phenomenon which I suspect explains non work, non marriage, deaths of despair, general alienation and, I suspect, the rise of reactionary populism. It should be a major task of social science to understand it.
Even more important, in dollar terms, is the success of corporate lobbyists in maintaining favorable treatment for tax havens in the Caribbean and every continent by gutting the enabling legislation for
@USTreasury
@SecYellen
's international tax agreement.
It is sobering to recall that the shape of the past decade’s inflation curve almost perfectly shadows its path from 1966 to 1976 before it accelerated in the late 1970s.
My interview today with
@FareedZakaria
@CNN
: Not the job of the
@POTUS
to go on a jihad against a company because he does not like the activities of a newspaper that is privately owned by its CEO.
The first step in regaining credibility is not saying incredible things. I was surprised when the new chancellor spoke over the weekend of the need for even more tax cuts. I cannot see how the BOE, knowing the government’s plans, decided to move so timidly.
I found this statement, In Our Name, by the Columbia University Jewish student community compelling. With the details changed it speaks for what I know are the views and values of Harvard's Jewish community and the Jewish communities at many other universities.
Student loan debt relief is spending that raises demand and increases inflation. It consumes resources that could be better used helping those who did not, for whatever reason, have the chance to attend college. It will also tend to be inflationary by raising tuitions.
Nick Eberstadt's book, Men Without Work, is a searing indictment of contemporary America. It convinces me that economics cannot explain why 1 in 7 prime age men 25 to 54 are not working today amidst a massive labor shortage.
Watch our discussion
@AEI
:
Harvard capitulation to those advocating actions that are antisemitic in effect if not intent continues.
President Garber is obviously right about a high bar to police action. I would say a very high bar is appropriate. In my view protests so far fall short of warranting any