Greenspan Checkmates GOP

02 August 2010 |permalink | email article

The former Federal Reserve Chairman will always be remembered as the culprit who championed deregulation during his long term. But in an interview on NBC’s “Meet the Press” Sunday the leading defender of Ayn Rand’s philosophy of greed did something unexpected to mitigate his mistake.

He expressed his disagreement with the Republican argument that tax cuts essentially pay for themselves by generating revenue and productivity among recipients. “They do not.”

President Obama has pledged to continue tax breaks for those individuals making under $200,000 and those families earning less than $250,000. Greenspan made it clear that extending the Bush tax cuts without paying for them could be “disastrous.” Republicans have yet to explain how they would pay for the entire package, insisting that keeping them in place will pay for itself.

House Minority Leader John Boehner has made a big deal about how Republicans will unveil their fall strategy during the Congressional recess. Disagreeing with the iconic Greenspan may be easier said than done.

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