Greenspan doesn’t like McCain’s Tax Cuts

As the financial markets and the two new Presidential campaigns gear up, people often look at former advisers and figure heads like former Fed Chairman Alan Greenspan. Even though I know many people have bashed Greenspan lately for the current housing problems. First, I think that Greenspan is still a very free-market oriented person. Second, I think he did his job like most other people would. As I believe a better policy for the Fed would have been to do nothing. We have come a long way since the founding of the Fed. Enough with that, here is what he has to say about McCain’s tax plan:

“Unless we cut spending, no,” the former Federal Reserve chairman said Friday when asked about McCain’s proposed tax cuts, pegged in some estimates at $3.3 trillion.

“I’m not in favor of financing tax cuts with borrowed money,” Greenspan said during an interview with Bloomberg Television. “I always have tied tax cuts to spending.”

McCain does say this:

“McCain has said that he would offset his proposed cuts — including reducing the corporate tax rate and eliminating the Alternative Minimum Tax that has plagued middle-class families — by ending congressional pork-barrel spending, unnecessary government programs and overhauling entitlement programs such as Medicare and Social Security.”

Of course, I agree with Mr. Greenspan because I am not a Keynesian. I am glad he isn’t either. The problem is that who knows if he can pull it off. Even if he cuts the pork, that is only $17 billion dollars. This is nowhere near the $3.3 trillion. I have a hard time thinking that McCain will be able to pull off the spending cut.

But if he does, he will be one of the greatest Presidents ever. I won’t hold my breath.

The rest is here.


Published in: on September 18, 2008 at 8:18 pm  Comments (1)  
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One CommentLeave a comment

  1. Spending of deciding not to use stops. All you can do when you find spending that you think may be profitable is to back test it. This is how to win with spending.

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