Friday — March 5, 2004

Alan Greenspan—
friend to the rich,
betrayer of the old

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Three years ago Federal Reserve Chairman Alan Greenspan warned Congress that without massive tax cuts the federal government would run "excessive surpluses," a term describing the federal equivalent of a personal savings account.

Most people, especially those not in the highest income bracket, think it is a good idea to have a savings account.

Chairman Greenspan assured Congress at that time that tax cuts would not endanger future Social Security benefits.

Most people, especially those not in the highest income bracket, think Social Security is a good program that provides security and dignity to people at a vulnerable stage of their lives. Social Security is entirely self-funded, will continue to run a surplus through 2018, and, as it stands, will continue to be solvent through 2042.

The Social Security surplus is even being used to make the current catastrophic federal deficit smaller than it actually is.

Now Greenspan has changed his tune, toed the Bush administration line, shown his true colors, sold his credibility (and integrity) to the right-wing ideology that has long wanted to do away with Social Security, and, most significantly, betrayed the American people. Last week he told Congress that the enormous budget deficit would require cutting Social Security benefits.

Greenspan did not dwell on the fact that the deficit is a direct result of the tax cuts for the extremely wealthy that he supported three years ago. What has happened on Greenspan’s watch and with his blessings is that huge tax cuts have been given to the top one percent of wealthy Americans while benefits to working class Americans have also been cut.

Social Security will be the biggest casualty of Greenspan’s "bait-and-switch" financial advice to the U.S. Congress.

Americans should be outraged enough to pay very close attention to the race for president as it unfolds. The financial security of Americans who are lucky enough to live to become senior citizens hangs in the balance.

The Idaho Mountain Express is distributed free to residents and guests throughout the Sun Valley, Idaho resort area community. Subscribers to the Idaho Mountain Express will read these stories and others in this week's issue.