Rockefeller Center hosts former Treasury Secretary Larry Summers

This article appeared in The Dartmouth on 10/24/24, authored by Jeremiah Rayban and can be viewed here.

On Oct. 21, the Rockefeller Center for Public Policy and the Political Economy Project co-hosted former Secretary of the Treasury and former Harvard University President Larry Summers on campus. The discussion, moderated by economics professor Doug Irwin, covered topics including populism, socialism and the economic impacts of artificial intelligence.

Approximately 70 people attended the event, which included a brief audience Q&A.

Irwin opened the discussion with a question about the rise of populism in American politics. Summers — who served as Secretary of the Treasury from 1999 to 2001 — responded by noting that the populist trend "was not unique to the United States," pointing to electoral trends in Italy, France and Mexico as examples.

"There's a kind of visceral simple appeal to populism, which is why it recurs from time to time," Summers said. "It is likely to be particularly resonant at moments when people feel that expert elites are not doing a great job."

Summers characterized populism as "the mood of the moment" and said populist politics in America would lead the country to become "poorer" and "the rest of the world to be less secure."

Summers added that the trend toward populism in America is "unfortunate," noting that the United States is "getting more like" Latin American countries such as Argentina.

In response to a question from Irwin about the fiscal deficit, Summers said he "didn't know" how long the United States would be able to continue borrowing money. He noted that the country's debt-to-GDP ratio is currently around 100%, while the debt-to-GDP ratio of the United Kingdom in 1845 was around 250% — adding that "maybe [the United States] can keep this going for a long time." However, Summers said he is "pretty sure" continued borrowing is "not the right thing for us as a country to keep doing."

"I think there's a real question of for how long can the world's greatest debtor remain secure as the world's greatest power," Summers said.

When Irwin asked about the popularity of socialism among young people, Summers said he had walked from West Berlin to East Berlin in his youth. He compared the experience to walking through "a gate from 2024 to 1954" and said opposition to capitalism is fundamentally "anti-freedom."

"Why is it freedom to say that any two consenting adults should be allowed to do whatever they want in a bedroom but unthinkable to say that two consenting adults should be able to do whatever they want in a marketplace?" Summers said.

When asked by Irwin about the impact of artificial intelligence on the workplace and the future economy, Summers said the new technology will not "transform" jobs or productivity statistics within the next five years. However, Summers noted that artificial intelligence could be "an immense thing" for economic growth in the long term.

"I think it's possible that AI is going to mean another ratcheting up of normal [expected] growth rates and that it's going to be an even larger event in economic history than the Industrial Revolution," Summers said.

In response to a question about what advice he had for university presidents, Summers said he believes that universities have "lost their way a bit" and should stand for "fundamental missions of teaching and research" rather than "social" issues.

"They talk too much about social justice and too little about finding truth," Summers said. "They talk too much about celebrating community and too little about celebrating excellence."

Summers said there are "almost no" universities in the United States that have "maintained a consistent standard on racism and antisemitism." Summers added that students who claim that "what happened on Oct. 7 was a great victory" should be called out just as students who express the "views of the Ku Klux Klan" would be.

Summers concluded the moderated discussion with Irwin by encouraging students to "[figure] out what [their] distinctive strength is and [build] on that." He said students should develop expertise that makes them "the answer to some question that somebody must have."

"Certainly, there are plenty of problems to work on and plenty of opportunities to seize in the world," Summers said.

Students asked Summers two questions about his involvement in the NAFTA agreement and whether he regretted supporting the partial repeal of the 1933 Glass-Steagall Act while Treasury Secretary. Summers said that "in the end, U.S. taxpayers made a profit" from NAFTA. He also defended the partial repeal of Glass-Steagall in the Clinton administration, though he added that he wishes he had "more explicitly warned" about the 2008 financial crisis.

Attendee Sabik Jawad '26 said he has followed Summers "for a really long time" due to his interest in economic policy. He added that he "really liked the event."

Jacob Markman '27 also said he "really enjoyed" the event, adding that what Summers discussed "made a lot of sense." Markman said he agreed with Summers's concerns about college campuses.

"I'm a Jewish student who has a lot of problems with the way college campuses are," Markman said. "And I think what Professor Summers said was important to actually say out loud."