[This is just appalling. All during the 90s, tax cuts were verboten and surpluses were necessary, even during the weakness of the early years. But as soon as Bush won, deficits became dandy, not just for one year, but forever, even in the far distant future when they have no effect or connection to the current economic situation. I'm not saying that's wrong. I'm saying Greenspan is a shamelessly partisan shill. The parties didn't switch sides on the issue of fiscal rectitude all by themselves. Greenspan has largely controlled what's been politically possible for each of them by opposing the one and supporting the other. Because he personally hates spending money on government programs and loves giving money to rich people.]
November 14, 2002
Fed Chief Says He Backs Bush on Tax Cut
By EDMUND L. ANDREWS
W ASHINGTON, Nov. 13 Alan Greenspan, the chairman of the Federal
Reserve Board, weighed in today in favor of President Bush's campaign
to make last year's tax cuts permanent, lending a powerful voice to a
high priority of the new Republican Congress.
"It would probably be unwise to unwind the long-term tax cut, because
it is already built into the system," Mr. Greenspan told members of
the Congressional Joint Economic Committee.
Mr. Greenspan refuted the Bush administration on a crucial point,
however, saying that continuing the planned schedule of tax cuts would
provide almost no stimulus to the economy because the move would
affect taxes that kick in mostly during the second half of the decade.
http://www.nytimes.com/2002/11/14/business/14FED.html