U.S. budget deficits pose an economic threat, Federal Reserve Chairman Alan Greenspan warned on Tuesday, and Social Security benefit cuts will almost certainly be needed to cope with a rising tide of retirees.
“Failure to address the imbalances between our promises to future retirees and our ability to meet those promises would have severe consequences for the economy,” the Fed chief said in testimony for delivery to the Senate Special Committee on Aging.
Greenspan said spending on Social Security, Medicare and Medicaid is projected to rise to 13 percent of the nation’s total economic output by 2030 from 8 percent today.
For this complete story, please visit Greenspan: Budget Gaps Pose Threat to Economy.
