|FDR signs the Social Security Act in 1935|
Outside of the idiot caucus, and it pundits, no one wants the most successful social insurance programs in U.S. history diminished.
And no one, rational, wants the working class targeted in the coming the Grand Bargain.
Facing the elimination of public debt in 2001, the GOP under Bush-Cheney drove up the debt in the hopes that later structural deficits would force massive cuts to social insurance, education, stimulus spending and research.
Now is the time of reckoning of the lost decade.
Let's not reward what Bush-Cheney did.
In 2001, Fed Chair Alan Greenspan testified before the Senate Budget Committee on the potential dangers of having zero federal debt, a fiscal legacy that Bush, Cheney and his rightwing ideologues were desperate to avoid.
And avoid and reverse this no-debt legacy they did.
Greenspan’s was an ambiguous and wide-ranging testimony—recounted by former Treasury Secretary Paul O’Neil in The Price of Loyalty—that included Greenspan’s “fear that large surpluses would create a drag on the economy,” among other expressed cautions and concerns about the then-proposed Bush tax cuts (O’Neil p. 63) for the super-rich, now set to expire.
But the damage was done and Greenspan gave political cover (then and in later statements) to the reckless Bush tax cuts.
Said Greenspan in his subsequent testimony before the House Committee on the Budget (March 2, 2001):
At zero debt, the continuing unified budget surpluses now projected under current law imply a major accumulation of private assets by the federal government. Such an accumulation would make the federal government a significant factor in our nation’s capital markets and would risk significant distortion in the allocation of capital to its most productive uses.A significant distortion to productive uses of capital? You mean like AIG, Citibank and Goldman Sachs?
Greenspan has since more or less apologized for his role in the train-wreck of the Bush-Cheney years that the GOP wants brought back, in part because the GOP friends in the Tea Party cannot stand the site of a black president reelected by other 'mud people.'
If President Obama takes Social Security, Medicare and Medicaid off the table, the American people will be behind him, Erskine Bowles and Alan Simpson be damned.
- A version of this piece has previously appeared