In 1983, Greenspan, a Republican, chaired a bipartisan commission that recommended a package of tax increases and benefit reductions to shore up Social Security’s finances. Congress followed the panel’s recommendations.
Today, he said, the debate is far more partisan. Earlier this month Senate Minority Leader Harry Reid of Nevada called Greenspan a “political hack.” Tuesday, Sen. Hillary Rodham Clinton, D-N.Y., pounced on him harshly as well. She said his support of tax cuts in 2001 “helped blow the lid off” a government budget surplus and led to last year’s record $412 billion deficit.
Greenspan countered that he warned in 2001 that tax reductions could lead to deficits and that a trigger was needed to force automatic spending cuts if deficits appeared. Congress didn’t do that.
“It turns out we were all wrong,” Greenspan said.
Clinton interrupted him.
“Just for the record,” she said, “we were not all wrong, but many people were wrong.”
Damned straight. Greenspan got up before the country and said that it was dangerous to run a surplus and we simply had to cut taxes. Now he is feverish on the subject of getting the savings rate up. Perhaps I’m wrong here, but from an economic standpoint I thought it didn’t matter a whole lot if the government saves the money or the private sector saves the money, the economy benefits more or less the same.
Randians like Uncle Alan, however, don’t really see these things in terms of the health of the overall economy so much as the imperatives of a moral system that must be followed regardless of the consequences. They believe capitalism is a religion in which it is always wrong for the government to tax the heroic John Galts of the world, as a matter of virtue, not economics. Therefore, their dogma requires that the idea of surplus is positively wicked if the Galt strata are being taxed even a penny.
This strange erratic behavior we see in Uncle Alan these days is to be expected of people who follow the teachings of speedy, chainsmoking Russian romance novelists. They tend to serve their goddess as needs be. One could call them hacks. I prefer cultist.
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