Summers time

In many of the photos from Monday's press conference, Larry Summers' head looms large behind Obama. David Leonhardt, though mindful of his faults, writes glowingly of Summers and the role he appears to be taking in the Obama administration.

A few weeks ago, I called a well-known economist with a question about the financial crisis. “I hope the only reason you’re calling me,” he said, “is that you couldn’t reach Larry.”

And this is encouraging.

INEQUALITY Mr. Summers has spent much of his career tweaking fellow liberals with arguments he considers unpleasant truths — on the dangers of budget deficits, the benefits of capitalism and other subjects. But he seems to have decided that conservative orthodoxies have become a vastly bigger threat to good economic policy than liberal ones. His favorite argument today is one that instead drives some conservatives nuts.

It goes like this: To undo the rise in income inequality since the late ’70s, every household in the top 1 percent of the distribution, which makes $1.7 million on average, would need to write a check for $800,000. This money could then be pooled and used to send out a $10,000 check to every household in the bottom 80 percent of the distribution, those making less than $120,000. Only then would the country be as economically equal as it was three decades ago.

The lack of middle-class income growth during that span is “the defining issue of our time,” Mr. Summers has said, in a tacit admission that liberals were ahead of him on this issue. He is likely to be front and center in Mr. Obama’s push to reduce taxes on the middle class and create good jobs. Mr. Summers may also push the administration to work with foreign governments to crack down on tax shelters.