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Trump's populism won't work, says former Treasury chief

Trump market affect
Trump market affect 01:57

DAVOS, Switzerland - Lawrence Summers, the former U.S. Treasury Secretary, has warned that Donald Trump’s threats to firms using Mexico as a manufacturing base will be counterproductive and could lead to the loss of hundreds of thousands of American jobs.

Trump on isolationism 01:28

Summers told a panel at the World Economic Forum that the president-elect’s “rhetoric and announced policies” over Mexico have led to a big fall in the value of the Mexican peso against the dollar.

That, he said, is a “dagger at Ohio,” as it will make it even more attractive for firms to move to Mexico.

The lesson of history, he added, is that “classic populism is invariably counterproductive for those in whose name it is offered as a policy regime.”

Reporting for CBS News from Davos, Switzerland: Lulu Chiang, Lauren Hoenemeyer and Gilad Thaler  

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