Federal Reserve Chairman Alan Greenspan's current mantra, "No new federal spending, no new tax cuts," calls for an important distinction. No new tax cuts, certainly, and Congress should keep President Bush from extending for five years the tax cuts with which he rewarded his rich campaign contributors.
But "no new federal spending, period," is simplistic. What will happen to the 300,000 families that will be cut off from food stamps and the 300,000 that will be cut off from child care vouchers if Bush's cuts in funding for domestic programs are not restored?
Greenspan's support of Bush's plan to privatize some Social Security funds is astonishing. What qualifies ordinary citizens to make decisions concerning their money that they would ordinarily entrust to a financial adviser?
Will those of us who decline to privatize have to bail out novice players who invest unwisely and get wiped out? Maybe Greenspan will set up an 800 number to give free advice to timid new investors. In his world of fiscal fantasies, all things are possible.
Kenneth J. Rummenie