WASHINGTON, Sept. 14 — Alan Greenspan, who was chairman of the Federal Reserve for nearly two decades, in a long-awaited memoir, is harshly critical of President Bush, Vice President Dick Cheney and the Republican-controlled Congress, as abandoning their party’s principles on spending and deficits.</p>
<p>In the 500-page book, “The Age of Turbulence: Adventures in a New World,” Mr. Greenspan describes the Bush administration as so captive to its own political operation that it paid little attention to fiscal discipline, and he described Mr. Bush’s first two Treasury secretaries, Paul H. O’Neill and John W. Snow, as essentially powerless. </p>
<p>Mr. Bush, he writes, was never willing to contain spending or veto bills that drove the country into deeper and deeper deficits, as Congress abandoned rules that required that the cost of tax cuts be offset by savings elsewhere. “The Republicans in Congress lost their way,” writes Mr. Greenspan, a self-described “libertarian Republican.” </p>
<p>“They swapped principle for power. They ended up with neither. They deserved to lose” in the 2006 election, when they lost control of the House and Senate…</p>
<p>Of the presidents he worked with, Mr. Greenspan reserves his highest praise for Bill Clinton, whom he described in his book as a sponge for economic data who maintained “a consistent, disciplined focus on long-term economic growth.” </p>
<p>…By contrast, Mr. Greenspan paints a picture of Mr. Bush as a man driven more by ideology and the desire to fulfill campaign promises made in 2000, incurious about the effects of his economic policy, and an administration incapable of executing policy. </p>
<p>…“I indulged in a bit of fantasy, envisioning this as the government that might have existed had Gerald Ford garnered the extra 1 percent of the vote he’d needed to edge past Jimmy Carter,” Mr. Greenspan writes in his memoir. “I thought we had a golden opportunity to advance the ideals of effective, fiscally conservative government and free markets.”</p>
<p>Instead, Mr. Greenspan continued, “I was soon to see my old friends veer off in unexpected directions.” He expected Mr. Bush to veto spending bills, he writes, but was told that the president believed he could control J. Dennis Hastert of Illinois, the Republican speaker of the House, better by signing them. </p>
<p>“My friend,” he writes of Mr. O’Neill, “soon found himself to be the odd man out; much to my disappointment, economic policymaking in the Bush administration remained firmly in the hands of the White House staff.” </p>
<p>He was clearly referring to the political team led by Karl Rove at the White House. Mr. Rove was a neighbor of Mr. Greenspan in a leafy enclave near the Potomac River, but the two men almost never had a conversation…