Allen Greenspan, former chair of the Federal Reserve, was a follower of the extreme right wing philosophy of Ayn Rand, and this certainly was major factor in how he ran the Fed. He was not just a follower from afar either, he was a member of the inner circle, as this Allen Greenspan / Any Rand timeline shows.
How right wing was Ayn Rand? She believed in the supremacy of self-interest and selfishness, thought altruism was evil and charitable giving despicable. Most of all, she wanted unfettered capitalism with absolutely no governmental oversight and twisted the ideas of Darwinism to mean that if the economically weak got crushed by the stronger, that this was for the good. That was her philosophy, and it’s been taken up by new generations of amoral greedheads to absolve them of any responsibility except to their net worth.
Allen Greenspan was and is a believer in this ultra conservative philosophy.
In 2001, Greenspan gave crucial support to Bushâ€™s tax cuts for the rich, when virtually no one, except ultra-conservatives, endorsed the concept. Those tax cuts are responsible for todayâ€™s disastrous budget deficit.
In 2005, Greenspan is the lone economic voice urging Americans to adopt the program that George Bush desperately desiresâ€¦â€¦Bush-style privatization of Social Security.
His “Irrational Exuberance” comment on the dot com stock market bubble came way too late in the game, and even with that the Fed did little if anything too slow it down. As for the current subprime mess, in 2000 a Fed governor approached Greenspan about investigating predatory mortgage lending and was flatly turned down.
“I would have liked the Fed to be a leader” in cracking down on predatory lending, Mr. Gramlich, now a scholar at the Urban Institute, said in an interview this past week. Knowing it would be controversial with Mr. Greenspan, whose deregulatory philosophy is well known, Mr. Gramlich broached it to him personally rather than take it to the full board.
“He was opposed to it, so I didn’t really pursue it,” says Mr. Gramlich, a Democrat who was one of seven Fed governors.
Greed is good, charity and altruism is bad. Let the strong prosper and let the weak die to enrich them. That is the philosophy of Allen Greenspan, and true to his guiding star, he did everything he could to funnel more money to the already wealthy at the expense of the rest of us. He presided over two speculative bubbles, dot com stocks, and real estate, bubbles which profited investment banks hugely while damaging the economy at large. Such selfish greed, benefiting a tiny few at the expense of everyone else, is consistent with a follower of Ayn Rand.