It will be interesting to see how Bush and Company respond to Greenspan's remarks today that Social Security is NOT in a state of crisis and that, in fact, it is Medicare that is looming larger as a real concern.
He also admonished lawmakers to get their respective houses in order by getting a quick handle on deficits to better prepare for the Baby Boomer crush that is on the very near horizon.
link: http://www.usatoday.com/printedition/money/20050218/1b_gspan18.art.htm
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From the USAToday.com article:
Greenspan said lawmakers must get a handle on the problems before baby boomers start retiring in 2008. To help control deficits, he said, any future tax cuts should be offset elsewhere in the budget.
"The first priority is to assure that deficits are under control," Greenspan said, warning that major changes are needed to restrain increases in budget deficits. The Congressional Budget Office estimates Social Security and Medicare could soak up 26% of the economy by 2050.
In his testimony, Greenspan also suggested Congress limit the growth of mortgage giants Fannie Mae and Freddie Mac. "(By) enabling these institutions to increase in size," he said, "we are placing the total financial system of the future at a substantial risk."
But the focus of the hearing was Social Security, which Greenspan said is not in crisis. "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," he said. "That is not going to happen."