March 7, 2005
JUDGE THEM BY THEIR ENEMY:
Greenspan under fire for support of tax cuts (Brian Knowlton, March 7, 2005, International Herald Tribune)
Alan Greenspan, long considered above partisan reproach as a celebrated steward of the U.S. economy, encountered criticism Sunday from Democratic lawmakers who said he had gone too far in support of Bush administration ideas on tax cuts, the notion of a consumption-based tax and Social Security reform.Greenspan, the Federal Reserve chairman, had made a "grievous error" in endorsing President George W. Bush's tax cuts that have "driven us into the worst deficit situation we have ever seen in this country," said Senator Richard Durbin of Illinois, the assistant Democratic floor leader.
Durbin's comment on NBC television came three days after a pointed attack by the Senate Democratic leader, Harry Reid of Nevada, who called Greenspan "one of the biggest political hacks we have here in Washington."
And Representative Nancy Pelosi of California, the House Democratic leader, said Sunday on Fox television that "these statements made by the distinguished chairman of the Fed have seriously questioned the independence of the Fed."
When you stack the economic/political credibility of Mr. Greenspan against Reid/Pelosi/Durbin/etc., who do you think comes out ahead? Every time you think the Democrats have biffed as badly as they can they turn around and do something like this, advertising their own opposition to one of the figures most credited (along with Paul Volcker, Ronald Reagan and Bill Clinton) with the longest economic boom in human history. Posted by Orrin Judd at March 7, 2005 7:45 AM
It's even worse than you say. Greenspan is retiring, will never run for public office, and anything they do to tarnish or defeat him won't advance their cause. They are sabotaging their own credibility for no gain whatsoever. It's like Don Quixote tilting at windmills.
Posted by: pj at March 7, 2005 9:25 AMoj --
I am glad that even an outpspoken critic of the Meastro has gone on record to expose the folly of this "Greespan, the partisan hack know-nothing" strategy.
There is a difference between technical criticism of the Fed's policies (where, tellingly, one often sees criticsm coming from both sides of a decision) and vitriolic partisan and even personal attacks (see Daily Kos for what the Left is up to on this). These attacks have to hurt the Democratic Party's Liberal base of support on Wall Street and financial circles, where Greenspan was very well liked and respected. (That he was an urban elite, married to Andrea Mitchell never hurt.) Throw into the equation the pillorying Larry Summers (another revered financiual figure from the Clinton years) has been a voctim of, and liberal Wall Street is going to have to re-evaluate its allegiance with the Left.
Posted by: Moe from NC at March 7, 2005 10:01 AMWell, now that Reid/Pelosi/Durbin/Dorgan have decided to ditch Greenspan (and, by extension, Robert Rubin), to whom will they turn for financial advice? Robert Byrd? Terry MacAuliffe? Jimmy Carter? Stuart Eizenstat? Gray Davis? Robert Reich?
A real lineup of heroes.
Posted by: jim hamlen at March 7, 2005 10:17 AMI saw a few minutes of Boxer on one of the Sunday AM TV talkshows.
Pretty soon now, people are going to realize that the Democrats have one and only one answer for every problem---raise taxes.
Posted by: ray at March 7, 2005 12:42 PM