Former Fed chairman Alan Greenspan in April endorsed Sen. John McCain, R-Ariz., saying, "I’m Republican and I support John McCain, who I know very well and who I respect a lot."
But Greenspan today told Bloomberg’s Al Hunt that he cannot get behind McCain’s proposed $3.3 billion in tax cuts, saying "unless we cut spending" the nation cannot afford cuts that big.
"Unless it’s paid for on the so-called pay-go, I’m not in favor of it," Greenspan said. "I’m not in favor of financing tax cuts with borrowed money.”
McCain, it should be noted, is such a fan of Greenspan’s, he joked he’d want him to help him revise the tax code even from beyond the grave.
"What we need to do is get ol’ Alan Greenspan — whether he’s alive or dead," McCain said last October on the campaign trail. "You know, if he’s dead, we’ll put dark glasses on him and prop him up like they did at ‘Weekend at Bernie’s.’"
Jason Furman, the Obama campaign’s economic policy director, today issued a memo criticizing McCain based on Greenspan’s comments, noting that McCain told reporters last December that "the issue of economics is not something I’ve understood as well as I should. I’ve got Greenspan’s book."
Wrote Furman, "We hope that John McCain will study Chairman Greenspan’s advice once again, and either come up with a credible specific plan for how to pay for his tax cuts, or scrap his regressive, expensive tax plan altogether."