[Marxism] Greenspan the Great

Calvin Broadbent calvinbroadbent at hotmail.com
Fri Mar 5 05:58:03 MST 2004


Sorry, don't know where this is from- someone sent it to me. My question is- 
why tax cuts for the rich? Whynow, why ever? Is this an inevitable feature 
of monopoloy capitalism? If so, why? And would Kerry or any Democrat be any 
different? If not, why not? Sorry for the big questions, just very 
interested in people's response.....all the best.


GREENSPAN THE GREAT

Analyst Thomas C. Lewis offers an analysis of the testimony yesterday before 
the
House Budget Committee, by Federal reserve Chairman Alan Greenspan. He urged
that cuts be made in Social Security benefits for future retirees rather 
than
raising taxes to deal with the huge budget deficit. Lewis offers the sort of
analysis we rarely see on all those financial shows:

"Let's look at the logic of this. Bush inherits a budget surplus from 
Clinton,
cuts taxes for the very wealthy, signs a Medicare bill that does more for 
HMOs
and big pharma than the elderly, pushes defense and law enforcement spending
through the roof without making us safer (see George Tenet's testimony
yesterday), cuts every social program, pushes the federal deficit through 
the
clouds, and Greenspan wants retirees to pay for it out of their pissant 
Social
Security benefits. Thus, the working poor and elderly pay twice for Bush's 
rich
friends.

"Is Greenspan nuts? No. He's in Bush's pocket. How did he get there? Because
Greenspan's version of the economy includes only central bankers, Wall 
Street,
big business, and the very rich.

"How can we know this? Just listen to Greenspan talk about inflation. The
inflation he talks about is an economist's theoretical, aggregated number 
that
bears no relation whatsoever to the costs of daily life for the Americans in 
the
bottom three quintiles of household income.

"Greenspan should try for, say, twenty years, as many middle class Americans
have done, to pay for college tuition for two or three kids, plus the costs 
of
helping elderly parents make their way through the marvelous health care 
system.
Higher education and health care have been the two most inflationary sectors 
of
the American economy since the 1960s (other than the costs of war). How do
people do this? They acquire large, nearly unpayable debts. Debt hurts
individuals and benefits the corporate economy. The only debt Greenspan 
worries
about is federal debt because it has the potential to drive up interest 
rates
and cause the kind of inflation Greenspan cares about, the inflation of 
payroll
and borrowing costs to corporations."

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