Former federal reserve chairman, Alan Greenspan, discusses his desire to see less government intervention in order to increase business investment in capital. Alan Greenspan's thoughts and ideas on the subject are beginning to gain a lot of attention as some agree with him in his desire for less government intervention. These who agree with him believe that government intervention is the cause for uncertainty and less private sector spending. In the short video clip, Greenspan briefly discusses the deficit problem and he believes that it should be the government's priority at the moment. In order to address this problem, Greenspan believes that raising taxes would be the most efficient way to do so.
3 comments:
There is no doubt that the government needs to stop spending and increase their revenues, but a big reason for the stimulus is to provide stability for the private sector to encourage investment. Without the stimulus their is no doubt that the economy would have completely collapsed. As for raising taxes, good luck getting the american public to go along with that.
It is interesting to hear from Greenspan who believed that "Speculators are essential to the process of stability and recovery." That's something I normally wouldn't expect to hear from him. I don't agree with him that the stimulus contributed to lagging recovery, it helped the private sector and increased confidence in the short term, otherwise, the economy would go for a more difficult direction.
Although, I think Greenspan made a good point that the government should do something to address its deficit spending and debt.
I am also surprised to hear that Greenspan thinks that the stimulus lead to the lagging recovery given all that Wyatt mentioned. I happing to think that the deficit spending due to the overlapping government spending is what needs to be addressed and one of the major contributors to the lagging recovery.
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