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Karan Chavda
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TRAFFIC TREASURY(new)

Published on 2/1/2019
For additional information  Click Here

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Larry Summers was stuck in traffic, waiting to cross the Anderson Memorial Bridge en route to his office in Cambridge, Mass.

No, this isn’t the start of a-man-walked-into-a-bar joke, although it could be. Summers’s May 26 op-ed in the Washington Post, a consolidated version ofa column he wrote for the Boston Globe, details how “routine maintenance” on a bridge that took 11 months to build in 1912 turned into a five-year, budget-busting boondoggle.

Coming from Summers — economist extraordinaire, former U.S. Treasury secretary, former president of Harvard University, father of Secular Stagnation 2.0 — such criticism of infrastructure investment is a big deal. Summers has been arguing for the last few years that the only way to get the U.S. economy out of its rut (no pun intended) is for the government to take advantage of historically low interest rates and borrow the money needed to repair and rebuild the nation’s crumbling infrastructure.

“How could our society have regressed to the point where a bridge that could be built in less than a year one century ago takes five times as long to repair today?” Summers asks.

It was not a rhetorical question as Summers provides us with answers. In short, a bloated regulatory state: that’s how. Welcome to our world, Dr. Summers.

The deregulation fever that swept the nation starting in the 1970s with transportation (railroads, trucking, airlines) spread to energy, telecommunications and finance, culminating in the 1999 repeal of Glass-Steagall, the Depression-era law separating commercial from investment banking. In his role as deputy secretary and then secretary of the Treasury under President Bill Clinton, Summers was a strong advocate for the law’s repeal.

 
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