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[richardf8]

After the Bush tax cuts have set deficits sprialling out of control, it seems the fed chief has come up with the perfect solution: Cut Social Security

This is essentially a Swiftian solution which would have us eat our elderly rather than our children. Anyone up for a side of Fed Chief with Fava Beans and a fine Chianti? He's 78 now, and has CLEARLY outlived his usefulness.

Comments

[lordrunningclam.livejournal.com]

It's not that I can't belive he said that, I just can't believe he said that during an election year. It's as if he wants the Democrat to win...

Greenspan is just reacting to the simple economic reality that has befuddled every Republican Prez since Reagan. If you gotta give tax cuts to the rich, and you gotta increase the defense budget, and you gotta keep paying debt service (because you gotta keep the dollar on a sound footing), and you gotta keep inflation from spiraling out of control, sooner or later you gotta talk about cutting grandma's Social Security.

The worst economic news I have heard recently is how badly the dollar is doing next to the euro and yen, due mainly (I think) to the crushing debt. I'm just waiting for Da Prez to announce a third world style structural adjustment program to deal with the problem. This could just be the first step.

[visservoldemort.livejournal.com]

I'm told that to a certain extent, the disparity hurts Europe and Japan more than it does us. Which might imply that they may take steps to strengthen the dollar as well. Granted, I'm not expert on the topic, however.

[makovette.livejournal.com]

Wags would place the blame for the deficit on congressional spend rather that tax cuts ;-)

Both ends of the equation need to be cut, less spending and less taxation. You can neither tax nor spend a country into prosperity.

Dump the convoluted and privacy invasive IRS tax codes, got to a straight sales tax and everyone pays the same. Spend like you are rich, you pay taxes like you are rich.

CYa!
Mako

[richardf8]

Congressional Spending tends to include lots of stuff the administration asks for. I get irritated with administrations that want to fight costly wars, with costly consequences, while reducing revenue and then blame Congress for spending money (that the administration has begged for).

As for the straight sales tax, it looks good on paper, though I would want to avoid taxing food and clothing. Since these comprise more of the household budget for the poor than the rich, these exceptions would make a sales tax less regressive.

[visservoldemort.livejournal.com]

I'm rather amused that you mention this Rich, as I was just speaking about it with a friend when I looked onto my friends page. And before that, during my Federal Reserve Competition meeting at school, we were discussing how Greenspan commented that outsourcing may actually be a good phenomena. He may have a point on the outsourcing in the long term (though I highly doubt it, and in the short and medium term it throws millions out of work) but the social security matter is ridiculous. Raise taxes! It's not that hard a concept. And even should he have a point on these things, which I do not think he does, to say this during an election year? Oy! The man is not what I would call 'politically astute'.

[richardf8]

Or maybe, just maybe, he is so sickened by the effects of the tax cut that he is persuading Bush to adopt a platform plank of "Let Grandma eat Dog Food" to prevent his re-election.

[visservoldemort.livejournal.com]

I think that's giving him a bit too much credit for bloodthirsty long term thinking. Despite what my teacher advises us on how the judges in the Federal Reserve thing will question us, I still refuse to subscribe completely to the "Economists go for the jugular" concept. ;)

Besides, he did support the tax cuts, at least partially, and unless he's been planning on getting rid of Bush for a lot longer than previously thought...it's somewhat unlikely.

[richardf8]

He may have a point on the outsourcing in the long term.

In the long term, we are all dead.

[visservoldemort.livejournal.com]

*chuckles* True. Though we should still attempt to move globalization forward as best we can, even if it fails to come to it's pinnacle in our time. There has been much talk of Biotech replacing high-tech as America's specialization for the next decade or so. Another reason why the Administrations restrictions on Stem Cell research bother me. South Korea seems to have jumped ahead somewhat, while we've been dilly dallying.