“I'm concerned that growth will not pick up,” he said. “I'm concerned that we have seen a fair amount, a moderate amount of growth, in the U.S. Over the last five years but it has all been cyclical.”
“I am worried that … we are not going to succeed as a country unless we get the underlying growth rate of our economy up by a significant margin.”
A surge in imports lifted the U.S. trade deficit in March to its highest level in nearly 6-1/2 years, suggesting the economy contracted in the first quarter.
Meanwhile, Larry Summers said he doesn't think "the days of normal being a 4% interest rate are going to return any time" in the foreseeable future.
"I don't think the economy has the underlying strength to maintain a basic momentum of growth at a 2% real rate plus a 2% inflation rate. I think the increasing awareness of that in markets is going to act as a restraint that keeps medium and long-term yields low," he said.
This is reality. The indications are that the revisions on the 1st quarter growth number will be revised downward into a negative number. An economy that is controlled and planned by a central committee as Marx said should happen is like a race horse being held back by its jockey. The central committee does not have a pulse on what is happening within the marketplace.
The central committee also makes political decisions and not business decisions. As much as the Marxists despise profit and competition, this is what drives growth in any economy. It is the business owner who is risking his own capital. His motive is totally different from the central committee. Innovation and growth are essential to him, and that is exactly what the Marxists and their central committee restrict through regulation and taxation.
Larry Summers identified the reality, but when will the Marxists understand the racehorse must be released, just as the United States economy must be released.