If you didn't notice yesterday
the Fed Chair who rubberstamped two reckless Bush tax cuts is backing Bush's privatization plans.
Greenspan Backs Private Soc. Sec. Accounts
Let's look back at Greenspan's history on Social Security
Remember Greenspan might be a little familar with the history and challeges of Social Security before he was Fed Chairman
Greenspan chaired
THE GREENSPAN COMMISSION a bipartisan commission that in 1983 issued recommendations for strengthening Social Security. Those reforms, which President Reagan signed into law that year, made a promise to American workers: your payroll taxes will be increased in order to finance the build up of trust funds, which will secure Social Security benefits when baby boomers retired in 21th Century .
Fast Forward to 2001 in which Greenspan rubberstamped the first Bush tax cuts- even though we were faced with a stalling economy and possibility of going from surplus to deficit. Turns out in private Greenspan knew it was a mistake .
Two years later Greenspan in the face of an incredibly irresponsible second Bush tax cut (that explodes the deficit and goes totally to the rich), Greenspan knows these will be a disaster but he instead strongly criticizing these cuts he says the following:
"I would prefer to find the situation in which spending was constrained, the economy was growing, and that tax cuts were capable of being initiated without creating fiscal problems," Greenspan said.
His tepid critique is all the cover that the Bush administration needs and the second tax cut passes
A year later with exploding deficits and debt as far as the eye can see = what is Greenspan's answer? He attacks the one government program that is running a surplus.
"As a nation, we owe it to our retirees to promise only the benefits that can be delivered," Greenspan said in opening remarks to a two-day conference sponsored by the Federal Reserve Bank of Kansas City on the challenges posed by aging populations.
"If we have promised more than our economy has the ability to deliver, as I fear we may have, we must recalibrate our public programs so that pending retirees have time to adjust through other channels," Greenspan said. "If we delay, the adjustments could be abrupt and painful."
Yesterday Greenspan once again shows his true colors here is his view of Privatization.
"All in all, I'm glad that if we're going to move in that direction, we're going to move slowly and test the waters, because I think it's a good thing to do over the longer run," Greenspan told the Senate Banking Committee on Wednesday.
But then he adds
``If we were to go forward in a large way and we were wrong, it would be creating more difficulties than I would imagine,''
So basically Privatization is a wonderful great thing unless it totally destroys the safety net for our seniors.
My question is
why is the world is the non partisan Fed Chairman backing a initiative which in his own words is highly risked ? Shouldn't his job be to a neutral observer whose primary job is to make sure that consequences of the proposal's and laws of congress and President are completely understand and most importantly don't wreck our economy?
Yesterday Greenspan revealed that he once and for all that he is a shill for the Bush administration he is no longer doing his job and must go!
