Greenspan and the Bush Tax Cuts

Image from New York Times article cited below.

I was surprised to read the comments made by Dr. Alan Greenspan in Friday's New York Times regarding the recent debate in Washington over the Bush Tax Cuts:

“I’m in favor of tax cuts, but not with borrowed money,” Mr. Greenspan, 84, said Friday in a telephone interview. “Our choices right now are not between good and better; they’re between bad and worse. The problem we now face is the most extraordinary financial crisis that I have ever seen or read about."

Now most would expect a libertarian to cry foul over the very idea of raising taxes. Wouldn't an increase in taxes on the wealthiest 10% contribute to greater economic slowdown? Doesn't that decrease the incentives of business owners to expand their operations? What about the laffer curve? Although it pains me to say it, I am right along with Dr. Greenspan. The very idea of borrowing more money to sustain the size of our government is proposterous. I have long been disgusted with the size of the Federal Government, it's reckless spending on entitlement programs and the billions of dollars poured into pork projects. But, the reality is that it is the wealthiest in society who are most involved in Government policy, through direct contributions to politicians, interest groups, and PAC's.

By allowing these Tax cuts to expire, we will not be hurting the businesses, but rather will be pushing the business owners to reinvest a higher percentage of their profits back into their businesses, so as to avoid paying those taxes. This additional investment will lead to expansion, inovation, and (gasp) job creation.

Additionally, this policy would encourage those most involved in the political process to reassess the means in which they pursue their self-interests. Is it better to allow the government to continue on its path of being captured by the private sector, and to spend it's way into a black hole of debt? Or, should we seriously reevaluate the role that government should play not only in business, but in the lives of the citizenry as a whole?

So, to those of you who may be affected by such a rise in taxes I pose this challenge. Why should the rest of us pay to subsidize this Leviathan, when you do nothing to prevent it from drowning us all? Lobby to scale back government spending, in all it's forms, or pay up.

Introduction

Welcome to The Contrarian Libertarian blog! I am a registered libertarian, and a student of Economics and Political Science at Towson University. I subscribe to the Austrian School of Economics, in the tradition of Ludwig von Mises, Henry Hazlitt, Friedrich A. Hayek, and Murray N. Rothbard.

The primary purpose of this blog will be to analyze and critique philosophic, economic, and public policy arguments made by both mainstream and fringe groups, within the United States. Once a week I will post an article, along with my interpretations and opinions. Being a current undergraduate student, it is likely that some of my posts may appear to be nonsensical, or just plain common sense. But, the point here is to reassess and challenge beliefs to which many in our country feel have been settled. I believe that the unexamined life, is not worth living and that the only stupid question is the one that goes unasked.

I look forward to hearing your comments and feedback, as this endeavor unfolds.

-The Contrarian Libertarian