Krugman on Greenspan’s Remarks

In today’s NYTimes column, Paul Krugman has some things to say about Greenspan’s shockingly partisan testimony on Capitol Hill last week. The most interesting parts of his column are the three conclusions that Krugman draws:

First, “starving the beast” is no longer a hypothetical scenario — it’s happening as we speak. For decades, conservatives have sought tax cuts, not because they’re affordable, but because they aren’t. Tax cuts lead to budget deficits, and deficits offer an excuse to squeeze government spending.

Second, squeezing spending doesn’t mean cutting back on wasteful programs nobody wants…

Finally, the right-wing corruption of our government system — the partisan takeover of institutions that are supposed to be nonpolitical — continues, and even extends to the Federal Reserve.

I have to admit that I found theories about “starving the beast” to be a bit implausible a year or two ago. But now such theories are not just plausible; they describe reality.