Magazine article The Nation

The Stealth Candidate

Magazine article The Nation

The Stealth Candidate

Article excerpt

On the morning after, people awoke to the drear prospect of "gush and bore" for the next six months, and excitement flew out the window. No reason to despair-we can refocus mental energies on another, more significant campaign running in the shadows of the presidential colors. The shadow candidate in Election 2000 is Alan Greenspan, and his single- issue purpose is to subdue the country's booming prosperity, just when people of modest means are getting a taste. He intends to put the super bull market to sleep, to increase unemployment and force default upon many humble debtors, maybe some big ones too. All this for our own good, we will be assured. Greenspan is promising to raise interest rates, again and again if necessary, to brake economic growth until it slows substantially, perhaps by half or more. His public rationale is a pre-emptory strike against inflation (although prices remain remarkably stable despite the boom). His true worry is the wildly inflated bubble in the stock market, which he presumes will subside gently as he slows the economy and corporate profits decline. But this campaign puts all of us at risk: If Greenspan has it wrong, Wall Street could crash or the country might tip into a nasty election-year recession. Can he do that? Yes, because the chairman of the Federal Reserve is not elected and does not consult the citizenry or even honestly inform them about his objectives. Americans who pay attention during the next few months are going to get a brusque civics lesson. They will glimpse the shallowness of our electoral democracy, the impotence of presidential candidates compared with this mysterious, unaccountable institution that governs the nation on behalf of money.

Imagine, now that the primaries have lost their suspense, if the media decided to turn the glaring coverage on Greenspan's campaign. TV crews could follow him around, shouting rude questions: How do you feel about all those people losing their jobs? When are you going to stop this bloody war against nonexistent inflation? Chatter shows on cable TV could recruit nightly panels of provocative voices-labor union economists, car dealers, failed stockbrokers-to provide hot commentary. Political reporters, who, as usual, would be bored by "the issues," might discover there's a gossipy horse-race drama. Is Alan Greenspan trying to make amends to the Bush family? Back in 1992, the chairman's tightfisted management produced the stagnation that helped defeat Bush Sr. (the one-term President went home to Texas convinced he would have beaten Bill Clinton if not for Greenspan). This year, the Fed Chairman has a good shot at electing the son.

Democrats will be howling soon, as they grasp the implications for Al Gore, but accusations of partisan bias at the Fed are unfair and mostly wrong. …

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