Greenspan: US can't afford McCain economy

Tax cuts for the rich too costly. Would sharply increase deficit, require spending borrowed money.

clipped from thinkprogress.org Greenspan: Country Can’t Afford John McCain’s Massive Tax Cuts For The Rich» On Bloomberg Television this weekend, former Federal Reserve Chairman Alan Greenspan told host Al Hunt that the country can’t afford John McCain’s massive $3.3 trillion tax cuts without corresponding spending reductions: As the Wonk Room has noted, McCain’s tax cuts would produce the highest federal deficit in 25 years. After inheriting Bush’s $407 billion deficit, yearly deficits under McCain would increase sharply, beginning with at least $505 billion in FY2009. McCain has not specified how he would pay for his tax cuts, though he claims he will balance the budget in his first term. Recognizing that McCain’s math doesn’t add up, McCain’s top economic adviser Douglas Holtz-Eakin has said, “I would like the next president not to talk about deficit reduction.”