Social Security, Medicare not in crisis - Greenspan
Key points
- Federal Reserve Chairman Alan Greenspan said on Thursday he deliberately avoids using the term "crisis" to describe the problems facing Social Security and Medicare because their issues are not imminent.
- Again, it's got the same characteristics (as Social Security) and I would not use the word crisis because I don't think that that properly identifies what the nature of the problem is," Greenspan said in response to a question from the House of Representatives Financial Services Committee.
- "Crisis to me usually refers to something which is going to happen tomorrow or is on the edge of going into a very serious change.
- The Fed chief said a flexible U.S. economic system was vital to foster adjustments in trade imbalances.
Federal Reserve Chairman Alan Greenspan said on Thursday he deliberately avoids using the term "crisis" to describe the problems facing Social Security and Medicare because their issues are not imminent.
"(Medicare) is a very serious problem. Again, it's got the same characteristics (as Social Security) and I would not use the word crisis because I don't think that that properly identifies what the nature of the problem is," Greenspan said in response to a question from the House of Representatives Financial Services Committee.
"Crisis to me usually refers to something which is going to happen tomorrow or is on the edge of going into a very serious change. That is not going to happen in either Social Security or Medicare over the next several years," he said.
The Fed chief said a flexible U.S. economic system was vital to foster adjustments in trade imbalances. He also said that while a consumption tax would likely increase savings in America, he doubted such a tax has much support in Congress.
Written and revised by
Gerald Hurowitz, M.D.
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