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." Read more: http://www.huffingtonpost.com/2010/08/01/alan-greenspan-extending_n_666549.html
Re: Alan Greenspan: Extending Bush Tax Cuts Without Paying For Them Could Be 'Disastr The only way to shrink our defecit is to cut spending. We are spending at an enormous rate. Increasing taxes on the American people at a time like this could really put a damper on getting out of this recession. We need to cut our spending habits. Unemployment benefits are way to long at 99 weeks right now and we need to stop paying for individual lawmakers pet projects. We need to reform social security, medicare and medicaid. These entitlement programs are not solvent. I am very interested to see what the president's deficit commission recommends. I think they are going to put the Democrats in an awkward position by recommending changes to these once "untouchable" entitlement programs. I also blame Greenspan for his part getting us in this mess. As Fed Chair, he kept interest rates way too low for too long of a time.
