From: "Max Sawicky" <sawicky at bellatlantic.net> Date: Thu, 25 Jan 2001 18:35:55 -0500
Greenspan's testimony today is a remarkable departure from his operational, hard-right conservative mode. It's like a mini-Ayn Rand burst out of his chest, a la Alien.
I do not refer to his acquiesence to tax cuts. This was not unexpected, merely a sign of his political scruples. Boy, isn't it great that the Fed is politically independent?
Rather, it was his justifications for doing so. These included the merits of the government *failing* to divest itself of debt, since a government with no debt to service would be in danger of using tax revenue to purchase financial assets, and this would be bad. So in this AG is implicitly declaring that, by his lights, Social Security should not be funded in any way to meet expected future needs.
Then there was some babbling about the prohibitive expense of liquidating Treasury debt. This was simply an expression of willful ignorance.
Then there was the idea that a smaller surplus would preclude government spending. So in effect, AG is resurrecting the rationale in the 1980's for the '81 tax cuts.
I spoke to Hill staff who were stunned by all this. Maybe some Members will now figure out that fiscal discipline only applies when a Democrat might get credit for spending or tax cuts.
So in my book, besides revealing himself to be a political hack suitable for Supreme Court nomination, AG certifies himself as a full- fledged Nut.
mbs