A Case of Consumption?
Recently Federal Reserve Chair Alan Greenspan continued his campaign to destroy every last shred of his personal credibility by endorsing the idea of shifting the United States taxation paradigm to a consumption-based, rather than income-based, system. With typically cryptic mumblings about broadening the tax base Greenspan seems to have abandoned all semblance of rationality. The argument, if such a term from the logician's toolkit may be employed here, is that forcing people to internalize the cost of consumption will encourage American's to boost their savings. In a vacuum, this may very well be a reasonable proposition. Regrettably, Mr. Greenspan does not have the luxury of overseeing a vacuum, he is supposed to be overseeing our economy. And within that context his idea may generously be described as irresponsible and unrealistic, if not actually reckless and dangerous.
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