Krugman: Maestro of Chutzpah (Greenspan)

[RamboLiberal]

http://www.nytimes.com/2004/03/02/opinion/02KRUG.html?hp

The traditional definition of chutzpah says it's when you murder your parents, then plead for clemency because you're an orphan. Alan Greenspan has chutzpah.

Last week Mr. Greenspan warned of the dangers posed by budget deficits. But even though the main cause of deficits is plunging revenue — the federal government's tax take is now at its lowest level as a share of the economy since 1950 — he opposes any effort to restore recent revenue losses. Instead, he supports the Bush administration's plan to make its tax cuts permanent, and calls for cuts in Social Security benefits.

Yet three years ago Mr. Greenspan urged Congress to cut taxes, warning that otherwise the federal government would run excessive surpluses. He assured Congress that those tax cuts would not endanger future Social Security benefits. And last year he declined to stand in the way of another round of deficit-creating tax cuts.

But wait — it gets worse.

You see, although the rest of the government is running huge deficits — and never did run much of a surplus — the Social Security system is currently taking in much more money than it spends. Thanks to those surpluses, the program is fully financed at least through 2042. The cost of securing the program's future for many decades after that would be modest — a small fraction of the revenue that will be lost if the Bush tax cuts are made permanent.

[salinen]

1. At least the Haitians had

the balls enough to start a revolution.

[aquart]

3. No, no.....seems that was brought to us by BushCo.

Revolutions R US.

[RichM]

4. Actually, it was a RIGHTWING takeover, & the US helped them.

That doesn't really qualify as having balls for a revolution. // Although I do get your point, & agree with it in spirit.

[tom_paine]

10. Yes, I agree, not a real revolution

Just another day in the Colonial Branch of the Amerikan Empire.

[Dudley_DUright]

2. Somehow I knew that Krugman would take on Greenspan

over social security in this column. Now we just need to get Krugman into Greenspan's job.

[priller]

5. Amazing how many people are sacrificing their reputations

in defending the indefensible Bush admin. Greenspan used to be worshipped. Now he can join Powell, Mankiw, Christie Whitman, Rumsfeld, Rice, Cheney, and no doubt many others in dustbin of of ruined reputations. I remember my brother, who worked for Senator Landrieu in 2000 when Bush was elected, saying "Well yeah Bush is an idiot, but he has good people around him." And that was the consensus DC viewpoint. But today, outside of blinkered idealogues, you'll find no one who agrees with that sentiment.

[Raster]

12. whoa, pardner, just one minute...

"Now he can join Powell, Mankiw, Christie Whitman, Rumsfeld, Rice, Cheney, and no doubt many others in dustbin of of ruined reputations." Please tell me you are kidding, right??? Rumsfield, Rice and Cheney...GIVE ME A BREAK!!! They're three of the ringleaders of this junta. junior is just a figurehead. Hell, he's got more hands up his backside than...

I don't know how you can type with a straight face and mention the word reputation and cheney in the same sentence.

[priller]

14. Think back to before 2000

Cheney was spoken of in glowing terms, that he would be like a wise mentor figure, a steady hand guiding the admittedly inexperienced Bush. I don't think many people knew what a radical he was, and is.

[StlMo]

6. Republicans are happily shredding the social safety net.

Welcome to Phase 2 of "Starve the Beast"

The GOP will rejoice in the grueling poverty of this once great nation.

Bush and his followers are disgusting.

[KayLaw]

7. And the ARM deal

I wonder what Krugman thought about Greenspan opining that people should get those rather thatn fixed-rate mortgages. I wish he would comment on that bit of strangeness.

[enough]

8. Greenspan has betrayed the nation.

From the article:

snip>

There are three lessons in this tale.

First, "starving the beast" is no longer a hypothetical scenario — it's happening as we speak. For decades, conservatives have sought tax cuts, not because they're affordable, but because they aren't. Tax cuts lead to budget deficits, and deficits offer an excuse to squeeze government spending.

Second, squeezing spending doesn't mean cutting back on wasteful programs nobody wants. Social Security and Medicare are the targets because that's where the money is. We might add that ideologues on the right have never given up on their hope of doing away with Social Security altogether. If Mr. Bush wins in November, we can be sure that they will move forward on privatization — the creation of personal retirement accounts. These will be sold as a way to "save" Social Security (from a nonexistent crisis), but will, in fact, undermine its finances. And that, of course, is the point.

Finally, the right-wing corruption of our government system — the partisan takeover of institutions that are supposed to be nonpolitical — continues, and even extends to the Federal Reserve.

The Bush White House has made it clear that it will destroy the careers of scientists, budget experts, intelligence operatives and even military officers who don't toe the line. But Mr. Greenspan should have been immune to such pressures, and he should have understood that the peculiarity of his position — as an unelected official who wields immense power — carries with it an obligation to stand above the fray. By using his office to promote a partisan agenda, he has betrayed his institution, and the nation.  

[The Backlash Cometh]

9. Time for Greenspan to retire.

And Krugman for Head Econ Guru!

[SeattleDem]

11. Social Security's dirty little secret

I hope all those Americans who don't yet understand the massive bit of fraud perpetrated on us all under the guise of a Social Security trustfund understand what Krugman is saying.

The dirty little secret: we raised the regressive FICA rates in the 80's to create a surplus for the baby boomers to retire on. But instead of having a "lockbox", we used that money to give FIT rate reductions (tax cuts) to the wealthiest Americans, thus bankrupting Social Security.

Yes, this IS class warfare, but we aren't the ones who started it.

[Manix]

13. Bravo...This is why Krugman has been called "the most important

columnist in America".