Greenspan Says “Badly Warped Economy” Unfixable Without Political Revolution

Alan Greenspan, Gollum, whatever. This is the creature that confirms NBC's Andrea Mitchell has lousy taste and judgment. And if that weren't enough, Greenspan did not even do the intelligent thing, like Milton Friedman did, and die before he had to admit he got all that free market is heaven shit all wrong.
In an excerpt from Alan Greenspan’s new book, offered this morning at Politico, the ex-Fed chairman says the US is at the brink, economically and politically:
“Our highest priority going forward is to fix our broken political system. Short of that, there is no viable long-term solution to our badly warped economy. In America we are being pulled apart politically in ways unrivaled since the aftermath of the 1929 crash.”
Greenspan says that the political rift comes from the sharp move to the right by the GOP, and particularly the Tea Party. Yet, Greenspan continues the peculiar conservative critique, which, while acknowledging the radical pressure exerted by the Tea Party politicians, for example in the House of Representatives (on moderate Republicans), continues to blame both parties equally for an unwillingness to compromise:
“Both uncompromising sides of our ongoing debate on fiscal and other issues need to recognize that financial crisis lurks should we fail to resolve our deeply disruptive fiscal imbalance.”
While Democrats, and particularly President Obama, have repeatedly offered large gestures to Republicans on budget cuts, Republicans have only grudgingly replied with a few tax increases on wealthier Americans.

Yet, Republicans now complain that Democrats are refusing to compromise—by refusing to completely kowtow to demands by Republicans that important programs, such as SNAP for poor Americans, be gutted or eliminated altogether.

Greenspan is correct in identifying an essentially intractable barrier to achieving any political or economic agreement. If the only compromise Republicans can stomach or sell to their increasingly radical constituencies is no compromise at all, and instead they will conduct a full-scale war bent on achieving a 100% retrenching on social programs, Democrats themselves would be direly imperiled politically to accept that condition.

In fact, given the awful economic reports for the middle and lower economic classes in America, contrasted with the fantastic increases in wealth experienced by the richest Americans during the last five years, Democrats, to maintain any credibility whatsoever with what is alleged to be their political base, must at this point be fighting for increases, not decreases, in social safety net and other economic stimulus programs.

When Greenspan speaks of a political “fix”, therefore, none can really occur without a revolutionary challenge to the decades-long drift to the right in American politics. The fundamental basis of a true left-wing challenge to the center-right Democratic Party, either within that party or without in the form of a social-democratic 3rd party alternative, is now established.

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