Mountain Views
“Congress shall make no law respecting an establishment of religion or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peacably to assemble and to petition the government for a redress of grievances.” —United States Constitution, Amendment One
■ The Mountain Press ■ Page A7 ■ Thursday, August 12, 2010
commentary
Greenspan abandons free market
I’m getting tired of Alan Greenspan. First, the former Federal Reserve chairman blamed an allegedly unregulated free market for the housing and financial debacle. Now he favors repealing the Bush-era tax cuts. This has a certain sad irony. Recall that Greenspan once was an associate of Ayn Rand, the philosophical novelist who provided a moral defense of the free market, or as she put it, the separation of state and economy. Greenspan even contributed three essays to Rand’s book “Capitalism: The Unknown Ideal” -- one for the gold standard, one against antitrust laws, and one against government consumer protection. It was slightly bizarre when Greenspan accepted President Reagan’s appointment to run the Fed — maybe he thought that as long as the Fed exists, better someone like him run it rather than one who really believes government should centrally plan money and banking. Be that as it may, Greenspan went on to pursue an easymoney policy in the early 2000s that is widely credited, along with the government’s easy-mortgage policy, for the boom and bust that followed. During a congressional hearing two years ago, Greenspan shocked me by blaming the free market — not Fed and housing policies — for the financial collapse. As The New York Times gleefully reported, “(A) humbled Mr. Greenspan admitted that he had put too much faith in the selfcorrecting power of free markets.” He said he favored regulation of big banks, as if the banking industry weren’t already a heavily regulated cartel run for the benefit of bankers. Bush-era deregulation is a myth perpetrated by those who would have government control the economy. We libertarians were distressed by Greenspan’s apparent abandonment of his free-market philosophy and his neglect of the government’s decisive role in the crisis. But at least he took a shot at the new controls Congress coveted: “Whatever regulatory changes are made, they will pale in comparison to the change already evident. ... (M)arkets for an indefinite future will be far more restrained than would any currently contemplated new regulatory regime.” But now Greenspan, going beyond what even President Obama favors, calls on Congress to let the 2001 and 2003 Bush tax cuts expire — not just for upperincome people but for everyone. “I’m in favor of tax cuts, but not with borrowed money. 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,” he told the Times. He says he supported the 2001 cuts because of pending budget surpluses, but now that huge deficits loom, new revenues are needed. Why? Brian Riedl of the Heritage Foundation says that since the cuts, “The rich are now shouldering even more of the income tax burden.” The deficit has grown not because we are undertaxed but because government overspends. “Tax revenues are above the historical average, even after the tax cuts,” Riedl writes. Given the stagnant economy, this is the worst possible time for tax increases. (Is there ever a good time?) Taking money out of the economy will stifle investment and recovery, and it’s unlikely to raise substantial revenue, even if that were a good thing. Finally, the stupidest thing said about tax cuts is the often-repeated claim that “they ought to be paid for.” How absurd! Tax cuts merely let people keep money they rightfully own. It’s government programs, not tax cuts, that must be paid for. The tax-hungry politicians’ demand that cuts be “paid for” implies the federal budget isn’t $3 trillion, but $15 trillion — the whole GDP — with anything mercifully left in our pockets being some form of government spending. How monstrous! If cutting taxes leaves less money for government programs, the answer is simple: Ax the programs! — John Stossel hosts a show on the Fox Business Channel and is the author of “Myth, Lies, and Downright Stupidity: Get Out the Shovel — Why Everything You Know is Wrong.” (C)2009 JFS Productions Inc.
Editorial
Be a park friend Two good ways to show your love, support of the Smokies This is a good week to show your support for our national park. One method is free; the other will cost you. Both provide opportunities to back Great Smoky Mountains National Park in a meaningful and significant way. Tonight WBIR, Channel 10 in Knoxville, hosts the annual Friends of the Smokies telethon. Money raised will go to pay for needed park programs and improvements not covered by federal funding. The telethon, which starts at 7 p.m., is the “Friends Across the Mountains” event to raise money for Friends of the Smokies, a support group responsible for millions of dollars in funding for the park. The telethon, in its 17th year, has generated more than $2.2 million to help preserve and protect the national park. During the telethon you’ll
learn about the park, the programs, the needs, the benefits of contributing to this worthy cause. Money raised by Friends of the Smokies has been used to save the endangered hemlock trees, fund educational programs, preserve historic structures, protect wildlife and improve hiking trails and other features of the park. You can donate by phoning in a pledge during the telethon or going to FriendsOfTheSmokies.org/Telethon. On the free front, the park is hoping it has enough friends to win a $100,000 grant from Coca-Cola through the company’s Live Positively campaign. Through the end of the month people can vote online for their favorite park, with the winner getting the grant. Our park is running second so far to Bear Head Lake State Park in Minnesota. It looks like a two-park
race, considering a Georgia park is a distant third. Now is the time for fans and friends of the park to step up, go online and vote for the Smokies. Visit www.livepositively.com and vote before the end of August. The money will find a good use. There are plenty of deferred maintenance projects that could get finished with the grant money, park spokesman Bob Miller said. But park officials may decide on something else to use the grant for, with a promise that it will be put to good use. The national park is the cornerstone, the very foundation of Sevier County. Everything else we have for visitors revolves around the park as the main attraction. The more we can do to support it and help it, the better it will be for those that depend on it. Please do what you can.
Political view
Public forum Outgoing commissioner says thanks for time in office
Editor: It has been my honor and privilege to have served the Third District and Sevier County as one of your commissioners for the past 20 years. I appreciate the trust and confidence you have placed in me. I would like to thank God for giving me the health to have had perfect attendance at full commission meetings over my 20 years of service Also, to my mother, Charlene K. McGaha for her support and encouragement
during good times and the not-so-good, thank you. One commissioner or county-wide elected official can do nothing, but working together, things get done. Over the past years a great deal of issues have been addressed in a positive way. I would like to thank the transportation and building advisory committees for allowing me to serve as your chairman the past few years. To all of the other committees I have served on this term and the previous four terms, thank you for all the time and hard work you do and have done to improve Sevier County. To all the current and former commission-
ers and county-wide elected officials, I have truly enjoyed serving with you and getting to know you. I consider all of you my friends. On all votes I tried to vote for the majority of citizens of the Third District and for what was best for Sevier County. To all the returning and new commissioners, I wish you the very best. The job is demanding and challenging, but also rewarding when lives are improved and Sevier County is made a better place to live and work. May God continue to bless Sevier County, Tennessee and the U.S. Tommy McGaha Fairgarden
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State Legislators:
Federal Legislators:
◆ Jana Thomasson, Publisher ◆ Stan Voit, Editor ◆ Bob Mayes, Managing Editor ◆ Gail Crutchfield, Community News Editor
◆ Rep. Richard Montgomery
◆ U.S. Sen. Bob Corker
1-800-449-8366 Ext. 1-5981; 207 War Memorial Bldg., Nashville TN 37243 rep.richard.montgomery@capitol.tn.gov
◆ Rep. Joe McCord
(202) 224-3344; 185 Dirksen Senate Office Bldg., B40A, Washington, D.C. 20510
◆ U.S. Sen. Lamar Alexander
(202) 224-4944; S/H 302, Washington, D.C. 20510
1-800-449-8366 Ext. 1-5481; 207 War Memorial Bldg., Nashville TN 37243 rep.joe.mccord@capitol.tn.gov
◆ U.S. Rep. Phil Roe
1-800-449-8366 Ext. 10981; 320 War Memorial Bldg., Nashville TN 37243 sen.doug.overbey@capitol.tn.gov
◆ U.S. Rep. John J. Duncan Jr.
◆ Sen. Doug Overbey
(202) 225-6356; 419 Cannon House Office, Washington, D.C. 20515 (202) 225-5435; 2267 Rayburn Office Bldg., Washington, D.C. 20515