There he goes again.
Alan Greenspan, the former Federal Reserve chairman who oversaw the two largest asset bubble's in world history and dismissed signs of their impending implosions, now has become a deficit hawk and says tax cuts "don't work."
Recently, Greenspan has come out for allowing all the Bush tax cuts to expire at the end of this year.
On Sunday's "Meet the Press," David Gregory asked Greenspan: "You don't agree with Republican leaders who say tax cuts pay for themselves?"
"They do not," Greenspan responded.
But that was not the tune Greenspan was singing in 2001 when he testified before Congress about the proposed Bush tax cuts.
Story continues below.
Greenspan Flip-Flops From 2001, Now Criticizes Tax Cuts
Former Fed Chairman Alan Greenspan, who oversaw the two largest asset bubbles in world history and dismissed signs of their impending implosions, has become a deficit hawk who says tax cuts "don't work."
Though Greenspan suggested tax cuts are not the best way to immediately jump-start an economy, he strongly favored the Bush tax cuts and suggested they would add, not deduct, revenues to the federal coffers.
In his 2001 testimony, Greenspan said he concurred with Bush administration revenue projections based on the implementation of the tax cuts.
He then added: "And should current economic weakness spread beyond what now appears likely, having a tax cut in place may, in fact, do noticeable good."
In a recent interview with Bloomberg, Greenspan admitted that letting the tax cuts expire “probably will” slow economic growth.
Nevertheless, Greenspan said the deficit should be the prime concern for policymakers.
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