I was watching Meet the Press on April 17, 2011 and one of the guests on the panel was Dr. Greenspan, the former head of the Federal Reserve. David Gregory asked a question of Dr. Greenspan the answer to which I have not been heard anywhere else. I purposely have waited to see if anyone would comment on this obvious slip. Since no one has responded, I am today.
They were discussing Social Security and other entitlements and Greenspan said "I don't think we could afford it in the first place." Wow, what a revealing moment! Did he really say that regardless of the good Social Security has done over the past 70 plus years, that it was in the end never affordable? I believe the answer is yes. If so, I doubt that he will ever be asked to respond to a question like that again!
If we could not afford Social Security then I am sure we could not afford Medicare, Medicaid, and Part D prescriptions. So what do now? Do we just abandon the programs and let the damage fall where ever it might? Do we continue the programs until we are forced to make drastic changes? Or do we start now to do things to change and modify the programs such as the Ryan proposal.
I would like to hear what you think. In a later posting today, I will make my proposals but I want to hear from you.
The text of the interplay between Dr. Greenspan and David Gregory is below, for those who want to read the entire exchange.
Let me know what you think.
MR. GREGORY: Dr. Greenspan, final point on this. This budget debate that we're talking about, what's realistic in an election framework? Being serious about Medicare or entitlements? Tax reform? What do you think is possible?
DR. GREENSPAN: You're, you're asking me a political question, not an economic question.
MR. GREGORY: Right. I like to put you on the spot like that.
DR. GREENSPAN: Yeah, well...(unintelligible). But look...
MR. GREGORY: You're up to it.
DR. GREENSPAN: ...as I watch what's going on, we have to remember that over the next 10 years or so we're going to find that the baby boom generation, highly skilled, highly educated, is going to fade from the scene. It's going to be replaced by a generation who are now in school and creating grades which don't make us look very good in the international spectrum. This means that we are probably dealing with an economy which isn't growing fast enough or creating much real resources to fund the entitlement programs that we have already made. I don't, I don't, I don't consider these--the issue of cutting back spending as essentially something which is new. I don't think we could afford it in the first place. We're really canceling something which didn't exist.
They were discussing Social Security and other entitlements and Greenspan said "I don't think we could afford it in the first place." Wow, what a revealing moment! Did he really say that regardless of the good Social Security has done over the past 70 plus years, that it was in the end never affordable? I believe the answer is yes. If so, I doubt that he will ever be asked to respond to a question like that again!
If we could not afford Social Security then I am sure we could not afford Medicare, Medicaid, and Part D prescriptions. So what do now? Do we just abandon the programs and let the damage fall where ever it might? Do we continue the programs until we are forced to make drastic changes? Or do we start now to do things to change and modify the programs such as the Ryan proposal.
I would like to hear what you think. In a later posting today, I will make my proposals but I want to hear from you.
The text of the interplay between Dr. Greenspan and David Gregory is below, for those who want to read the entire exchange.
Let me know what you think.
MR. GREGORY: Dr. Greenspan, final point on this. This budget debate that we're talking about, what's realistic in an election framework? Being serious about Medicare or entitlements? Tax reform? What do you think is possible?
DR. GREENSPAN: You're, you're asking me a political question, not an economic question.
MR. GREGORY: Right. I like to put you on the spot like that.
DR. GREENSPAN: Yeah, well...(unintelligible). But look...
MR. GREGORY: You're up to it.
DR. GREENSPAN: ...as I watch what's going on, we have to remember that over the next 10 years or so we're going to find that the baby boom generation, highly skilled, highly educated, is going to fade from the scene. It's going to be replaced by a generation who are now in school and creating grades which don't make us look very good in the international spectrum. This means that we are probably dealing with an economy which isn't growing fast enough or creating much real resources to fund the entitlement programs that we have already made. I don't, I don't, I don't consider these--the issue of cutting back spending as essentially something which is new. I don't think we could afford it in the first place. We're really canceling something which didn't exist.
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