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Larry Summers: US economy not growing fast enough

Former Clinton Treasury Secretary Larry Summers told CNBC Friday the U.S. economy is not growing fast enough.

While American economic growth is getting better and leads the rest of the world, investments need to be made to get the economy stronger, Summers said. "Confidence is the cheapest form of stimulus," he said on "Squawk Box."

"We're not doing well enough. We haven't had a year of 3 percent [growth] in a very long time in the United States," he said.

Summers, also a former Obama administration economic advisor, said the U.S. bond market is indicating that investors are worried. "With forward interest rates coming down as much as they have, it suggests concern about underlying growth in this economy."

The government should be investing more, not less, in the economy, especially with borrowing rates at such low levels, he said. "We've got to be doing more to get the economy growing more rapidly and making sure everybody share in that prosperity."

Summers called for infrastructure investments in antiquated airports and shipping ports, and said tens of thousands schools around the nation need to be improved.

He said private-sector investments need to be made in energy, high-speech Internet and information technology. "Way over three- quarters of the investment that we're making is private-sector investment."

The government also needs to address burdensome regulations and policies, Summers said. "It's important to legislate tax reform in the corporate sector as soon as possible."

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