Perception Filtering Quotes
When President Clinton left office, there was a huge fiscal surplus that Rubin had engineered, & President George W. Bush advocated a tax cut for the wealthy. Greenspan, who was very influential, did not oppose the tax cuts. He did urge that the tax cut be very carefully crafted so that the tax cuts would only be effective if the surplus continued. Rubin urged him not to take such a nuanced position as it would be perceived as support for the Bush tax cut which would not have the safety valves Greenspan advocated. Greenspan did not take Rubin’s advice. The tax cuts passed the Republican Congress with no safety valves with Greenspan’s statements being interpreted as support for the Bush plan just as Rubin had warned. The Bush Administration & the Republican Congress then increased spending enormously in almost all areas. With no safety valves rescinding the disastrous tax cuts, the surplus evaporated & became the largest deficit in history.