Yesterday, we enjoyed a joke about Alan Greenspan but I am going to adopt a more serious tone in this post.
My esteemed impression of Alan Greenspan, who once had the world cavorting and clinging on to his every word, took a dip after reading this book, “Greenspan’s Fraud: How Two Decades of His Policies Have Undermined the Global Economy.”
The truth is disturbingly harsh.
To be sure, there is nothing fraudulent about Greenspan’s actions, in a legal sense, even if the Federal Reserve, under his charge, squeezed millions of Americans dry (regressive taxes, higher health insurance, and lower pensions) while enriching the wealthy.
Social Security reforms become nothing more than empty promises or even a scam under Greenspan. He raised Social Security taxes but constantly reduced benefits for the contributors. Instead, the money was squandered on tax cuts for the rich and the voracious government spending.
During his 14-year reign as chairman of the U.S. Federal Reserve, the disparity between the rich and poor widens tremendously; a few enterprising men skimmed off most of the cream, leaving the poor to fight for the crumbs.
Alan Greenspan abhorred minimum wages as he believes it creates unemployment. He favors an influx of immigrants and outsourcing to keep wages down, improving profit margins for Big Business in the process. The book debunked his stance against minimum wages with statistics since 1935.
To Greenspan’s credit, he steered America out of several crisis since 1987 and not surprising, his reputation was elevated to that of a royalty. But, in all honesty, he is not the savior of the US economy. He delayed the inevitable by flooding the markets with liquidity. What we have left of a bubble is the current global economic mess.
The author accused Greenspan of perpetrating a national fraud. He was never concerned about the general well-being of Americans but rather to promote his own agenda using deceptive languages. After reading this book, tell me what you think.