Former Treasury Secretary Larry Summers has expressed strong criticism of the aggressive government reform tactics employed by the Trump administration.
In a recent episode of the All-In Podcast released on Friday, Summers declared that DOGE is on a path to a “disastrous failure,” potentially exacerbating the U.S. deficit. He conveyed his belief that while the U.S. government could benefit from increased efficiency, significant reforms are imperative.
Summers remarked, “I think we need much more reform,” aligning his views with those of fellow guest and New York Times columnist Ezra Klein. “Democrats, in particular, have overly become beholden to specific groups and traditional concerns, losing connection with the American mainstream in critical ways.”
However, he warned that the current administration’s actions, alongside the DOGE project, are damaging American institutions and are unlikely to address issues like the national debt effectively. “My best judgment is that this project is going to end in disastrous failure, despite highlighting important concerns,” he stated. “There certainly should be far more robust government reform, but that doesn’t justify the reckless approach that DOGE has towards conventional American institutions.”
He specifically criticized the White House’s recent moves to diminish the workforce of the Internal Revenue Service (IRS). In February, the administration proposed significant cuts to the IRS, and more recently, initiated deferred resignations and buyout offers for employees.
Summers cautioned that the assault on the tax collection agency could lead to a revenue loss that far exceeds any savings generated by DOGE. “We are, in effect, letting go of people who are essential for auditing high-income earners,” he said to podcast host Chamath Palihapitiya, who countered Summers’ claims. “And the end result is a direct loss in revenue.”
Palihapitiya mentioned that he undergoes automatic audits every year, noting that the government owed him $1,000 for the year 2024. This suggests that he maintains careful oversight of his tax returns, given his varied income sources.
Summers acknowledged Palihapitiya’s “personal integrity,” yet emphasized that “less than a quarter of individuals with incomes exceeding $10 million are audited.”
Summers has previously critiqued the Trump administration’s bold economic reform strategies. He labeled President Trump’s “Liberation Day” tariffs as excessively costly and “masochistic.” He remarked, “This is dangerous work with a sledgehammer on a very sensitive machine — the global economy — which has significant repercussions,” during the podcast.
