Like my colleague The Moose, I was stunned by press accounts of Federal Reserve Board Chairman Alan Greenspan’s testimony to the administration’s tax reform study commission yesterday. Back in 2001, you may recall, Greenspan endorsed Bush’s tax cuts on the bizarre theory that otherwise the national debt might disappear and the federal government would have to start buying equity in private businesses to dispose of excess cash. More recently he has returned to his pre-Clinton administration doomsaying about federal budget deficits. So what does he propose now? Draining more revenues from Washington by creating big, fat tax-free savings vehicles to enable high earners to shelter investment income from taxation.To be sure, what Greenspan actually wants is a national consumption tax, and endorses tax-free savings vehicles as a back-door means to that goal. This approach, of course, is a big part of the Grover Norquist “starve the beast” strategy of deliberately engineering large budget deficits in order to force big cutbacks in federal spending, or a shift in the tax base towards wage income or consumption, or all of the above.And the convergence of the Norquist and Greenspan approaches represents a stunning demonstration of how politics has completely debased a large part of the U.S. libertarian tradition.In Grover’s case, the big deal with the devil was his acceptance of the idea that repealing any sleazy corporate tax break represented a verbotin “tax increase.” Thus, instead of championing a level playing field for business competition and for tax policy, Norquist is now the tribune for corporate favoritism and reverse-Robin-Hood fiscal strategies, which help finance and politically drive an agenda that is “libertarian” only to the extent that it screws up government in a way that might eventually cause its general demise.Greenspan’s own Faustian Bargain stems from his famous “pragmatism”–barred by the limited role of the Fed, and by political realities, from actively promoting the free-market paradise he has long espoused, he consistently reaches out to endorse “politically feasible” policies that indirectly achieve his ends–typically, the free candy of tax cuts and tax breaks.Thus, both men embrace a stealth libertarianism that isn’t libertarian at all in its means. We all know Grover’s many ideological and rhetorical vices, but for all his legendary power and influence, he’s essentially just another Washington jive-ass thriving at the intersection of money and politics. But it’s beginning to become more apparent every day that the oracular Chairman has an equally twisted agenda.The Moose’s post today linked to an AEI article by Bill Bradford aboutGreenspan’s much-reported but oft-forgotten association with the Objectivist cult of novelist and proto-libertarian Ayn Rand. I thought I knew the story pretty well, but two things really startled me in Bradford’s piece: (1) Greenspan went straight from Rand’s inner circle (ironically but accurately known as “The Collective”) into the 1968 presidential campaign of Richard Nixon. In fact, Greenspan was already knee-deep in conventional Republican politics when he signed onto Rand’s bizarre excommunication of her protege and former lover Nathaniel Brandon. (2) When asked during various Senate confirmation hearings over the years if he still adhered to Randian dogmas like abolition of all regulations and a return to the gold standard, Greenspan gave no sign of a change of heart or mind.Given Greenspan’s current status as a close ally of George W. Bush, you kinda wish someone had recently asked him if he still regards belief in God as a deadly “mysticism of the mind” (corresponding to socialism, the “mysticism of the muscle”), a key tenet of the Objectivist canon. But whatever his political prudence and well-rehearsed routine as a mere economic technocrat, it is becoming clear that his formative extremism has not gone away–just the candor with which his mentor always expressed her oppressively dogmatic views about ends and about means.
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Editor’s Corner
By Ed Kilgore
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July 11: If Biden “Steps Aside” and Harris Steps Up, There Should Be No Falloff in Support
At New York I discussed and tried to resolve one source of anxiety about a potential alternative ticket:
One very central dynamic in the recent saga of Democratic anxiety over Joe Biden’s chances against Donald Trump, given the weaknesses he displayed in his first 2024 debate, has been the role of his understudy, Vice-President Kamala Harris. My colleague Gabriel Debenedetti explained the problem nearly two years ago as the “Kamala Harris conundrum”:
“Top party donors have privately worried to close Obama allies that they’re skeptical of Harris’s prospects as a presidential candidate, citing the implosion of her 2020 campaign and her struggles as VP. Jockeying from other potential competitors, like frenemy Gavin Newsom, suggests that few would defer to her if Biden retired. Yet Harris’s strength among the party’s most influential voters nonetheless puts her in clear pole position.”
The perception that Harris is too unpopular to pick up the party banner if Biden dropped it, but too well-positioned to be pushed aside without huge collateral damage, was a major part of the mindset of political observers when evaluating Democratic options after the debate. But now fresher evidence of Harris’s public standing shows she’s just as viable as many of the candidates floated in fantasy scenarios about an “open convention,” “mini-primary,” or smoke-filled room that would sweep away both parts of the Biden-Harris ticket.
For a good while now, Harris’s job-approval numbers have been converging with Biden’s after trailing them initially. These indicate dismal popularity among voters generally, but not in a way that makes her an unacceptable replacement candidate should she be pressed into service in an emergency. As of now, her job-approval ratio in the FiveThirtyEight averages is 37.1 percent approve to 51.2 percent disapprove. Biden’s is 37.4 percent approve to 56.8 percent disapprove. In the favorability ratios tracked by RealClearPolitics, Harris is at 38.3 favorable to 54.6 percent unfavorable, while Biden is at 39.4 percent favorable to 56.9 percent unfavorable. There’s just not a great deal of difference other than slightly lower disapproval/unfavorable numbers for the veep.
On the crucial measurement of viability as a general-election candidate against Trump, there wasn’t much credible polling prior to the post-debate crisis. An Emerson survey in February 2024 showed Harris trailing Trump by 3 percent (43 percent to 46 percent), which was a better showing than Gavin Newsom (down ten points, 36 percent to 46 percent) or Gretchen Whitmer (down 12 points, 33 percent to 45 percent).
After the debate, though, there was a sudden cascade of polling matching Democratic alternatives against Trump, and while Harris’s strength varied, she consistently did as well as or better than the fantasy alternatives. The first cookie on the plate was a one-day June 28 survey from Data for Progress, which showed virtually indistinguishable polling against Trump by Biden, Harris, Cory Booker, Pete Buttigieg, Amy Klobuchar, Gavin Newsom, J.B. Pritzker, Josh Shapiro, and Gretchen Whitmer. All of them trailed Trump by 2 to 3 percent among likely voters.
Then two national polls released on July 2 showed Harris doing better than other feasible Biden alternatives. Reuters/Ipsos (which showed Biden and Trump tied) had Harris within a point of Trump, while Newsom trailed by three points, Andy Beshear by four, Whitmer by five, and Pritzker by six points. Similarly, CNN showed Harris trailing Trump by just two points; Pete Buttigieg trailing by four points; and Gavin Newsom and Gretchen Whitmer trailing him by five points.
Emerson came back with a new poll on July 9 that wasn’t as sunny as some for Democrats generally (every tested name trailed Trump, with Biden down by three points). But again, Harris (down by six points) did better than Newsom (down eight points); Buttigieg and Whitmer (down ten points); and Shapiro (down 12 points).
There’s been some talk that Harris might help Democrats with base constituencies that are sour about Biden. There’s not much publicly available evidence testing that hypothesis, though the crosstabs in the latest CNN poll do show Harris doing modestly better than Biden among people of color, voters under the age of 35, and women.
The bottom line is that one element of the “Kamala Harris conundrum” needs to be reconsidered. There should be no real drop-off in support if Biden (against current expectations) steps aside in favor of his vice-president (the only really feasible “replacement” scenario at this point). She probably has a higher ceiling of support than Biden as well, but in any event, she would have a fresh opportunity to make a strong first or second impression on many Americans who otherwise know little about her.