According to Alan Greenspan, there was a small ‘glitch’ in his theory of perfect free markets. This little malfunction brought the world’s economy to its knees two years ago, and is again threatening to derail the limited success we’ve had in rectifying the disastrous effects of 30 years of deregulation. The Republican Party is adamantly opposing the expiration of the Bush tax cuts for the super rich, claiming that the trillions of dollars in lost revenue would be made up by the stimulative effects of the cuts. This is of course, utter nonsense and demonstrably false, with even the modern day God Father of neo liberalism claiming it would be a complete disaster for the fragile economy. 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…And at the end of the day that proves disastrous.
While Greenspan should rightly assume a portion of the blame for the initial meltdown, it seems he is finally understanding the simple economic truth that cutting taxes isn’t always the answer to promoting economic growth and is speaking out against GOP efforts to further destroy the economy. Amen.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.