[ Summers' solution] was to get the economy growing fast enough that the problems of the middle class would begin to solve themselves. And the way to do this was to slow government spending and raise taxes on the wealthy, which would bring down the Reagan-era budget deficits and, eventually, interest rates. Once that happened, the American economy would be unleashed.
...Bill Clinton ended up embracing the centrist, business-friendly ideas of Summers and his mentor, Robert Rubin, and the situation played out just as they had predicted: interest rates fell, and along came a boom that helped almost everyone. In the late ’90s, the wages of rank-and-file workers rose faster than they had in a generation.
....Dealing with this anxiety — making globalization work for the masses — has become the central economic issue of the day in Summers’s mind. And since his Harvard presidency ended a year ago, he has set out on a search for solutions. To him, it seems like a natural sequel to the policies he pushed in the 1990s.
.... Health care reform is another obvious priority. In Summers’s view, the current employer-based system, which creates insecurity for many families and big costs for companies, may need to be replaced by one in which the government pays for insurance but individuals choose what plan they want. It would be single payer, but not as England or Canada does it.
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