Larry Summers Defends Stance That Student-Loan Debt Relief Is Inflationary

Ex-Treasury Secretary Larry Summers rejected popular rebuttals to his criticism of sweeping student loan relief on Tuesday, one day after he warned in a viral Twitter thread that debt cancellation would make inflation even worse.

Summers expanded on his views even as President Biden purportedly nears a decision on whether to extend the ongoing pause on student debt payments.

Biden’s announcement is expected as soon as Wednesday, according to reports.

“Scarce public resources should be put to their highest and best use, regardless of how they are derived,” Summers tweeted Tuesday.

“Debt relief rather than head start? Adequate funding of fundamental science? COVID care? Strengthening opportunities for non-college workers? I don’t get it.”