Counterfactual is a favorite Summers squid word. It's not surprising that Summers maintains this agnostic stance. He gave us a sneak peek in a December 1991 memo on less-developed countries, when he was chief economist for the World Bank. A given amount of health-impairing pollution should be done in the country with the lowest cost. After all, during his confirmation hearings, not a single senator mentioned this stunning memo.
Many ventures fail.
The economic logic is indeed impeccable. This topsy-turvy view characterizes the end of all great eras. But go tell that to Michel Camdessus, managing director of the IMF, meeting in Washington this week. And when withholding is no longer possible, start squirting your ink.