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Greenspan has been so right before; let's listen to him again
Topic Started: Aug 1 2010, 11:38 AM (236 Views)
Axtremus
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HOLY CARP!!!
Article: http://www.huffingtonpost.com/2010/08/01/alan-greenspan-extending_n_666549.html

Quote:
 
Former Fed Chairman Alan Greenspan said that the push by congressional Republicans to extend the Bush tax cuts without offsetting the costs elsewhere could end up being "disastrous" for the economy.

In an interview on NBC's "Meet the Press," Greenspan expressed his disagreement with the conservative argument that tax cuts essentially pay for themselves by generating revenue and productivity among recipients.

"They do not," said Greenspan.

"I'm very much in favor of tax cuts but not with borrowed money and the problem that we have gotten into in recent years is spending programs with borrowed money, tax cuts with borrowed money," he said. "And at the end of the day that proves disastrous. My view is I don't think we can play subtle policy here."

The comments from the former Fed chief were an elaboration of a position he outlined in an interview earlier in the week. Speaking with PBS' Judy Woodruff, Greenspan expressed his opposition to passing legislation that would hold tax rates steady (under law the tax cuts Bush passed ten years ago are going to expire, thereby bringing rates back to Clinton-era levels). President Obama has pledged to continue the tax breaks for those individuals making under $200,000 and those families earning less than $250,000.

But Republicans want the entire package kept in place. Even so, they have declined to say how they would pay for it, saying, in part, that keeping the Bush tax cuts in place will pay for itself.

In addition to throwing cold water on that theory, Greenspan also weighed in on broader economic issues and trends. The former Fed Chairman relayed some sobering economic predictions, saying he expected the nation's unemployment rate to remain at its current level, mainly because there were few tools left to change it.


OK, just kidding with the subject lines ... I thought, and still think, that Greenspan was partly responsible for the sub-prime bubble. Nonetheless, I think he's right to oppose the preservation of all of Bush 43's tax cuts.
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Axtremus
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HOLY CARP!!!
And a companion article/video on the opposing view:

Sarah Palin Uses Hand Notes To Defend Bush Tax Cuts On 'Fox News Sunday' (VIDEO)

Video: http://www.youtube.com/watch?v=YIGUbiPNpxs

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Mikhailoh
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If you want trouble, find yourself a redhead
I'd have to agree with him. So let's start cutting spending. Start with 5% across the board cuts this year. That's not 5% less than what it would have been with built in cost increases. That's 5% less than last year. Watch the efficiencies come out of the woodwork.
Once in his life, every man is entitled to fall madly in love with a gorgeous redhead - Lucille Ball
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T.O.T.U.S.
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Axtremus
Aug 1 2010, 11:51 AM
She probably didn't earn enough from her, no doubt, ghostwritten books to be able to afford me. :wave:
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Axtremus
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HOLY CARP!!!
Another video on the deficit/tax cut expiration issue; this one by Zakaria: http://www.cnn.com/video/#/video/us/2010/08/01/gps.fareed.take.8.01.cnn
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