Greenspan Sends McCain Back to Remedial Economics Class
Alan Greenspan takes John McCain to school:
Alan Greenspan says the country can’t afford tax cuts of the magnitude proposed by Republican presidential contender John McCain — at least not without a corresponding reduction in government spending.
“Unless we cut spending, no,” the former Federal Reserve chairman said Friday when asked 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.”
This is a major boon to the Obama campaign. McCain has taken quite a bit of heat for his admission that he doesn’t know much about the economy, and the Obama campaign has hit him on this quite a bit:
It’s good to see in the article that the Obama campaign immediately pounced:
Democrats pounced on Greenspan’s comments, in part because McCain professed last year that he was weaker on economics than foreign affairs and was reading Greenspan’s memoir, “The Age of Turbulence,” to educate himself.
“Obviously he needs to go back to that book and study it some more,” Sen. Claire McCaskill, D-Mo., said during a conference call arranged by the campaign of Democratic nominee Barack Obama.
McCaskill said eliminating congressional earmark spending — estimated at $17 billion annually — cannot offset McCain’s proposed tax cuts.
“That’s a huge amount of money, but it’s not even a drop in the bucket to pay for $3.5 trillion in tax cuts,” she said. “So, every time he throws up earmarks and he’s asked how he’s going to pay for it, he knows he’s being disingenuous, he knows he’s not being forthcoming.”
This quote is just ripe for an AD, and I hope the Obama campaign is in the studio, ready to get this on the air.