Alan Greenspan: Entitlement Spending Is ‘the Most Serious Problem Confronting Us’

>> Dana Thank you so ░░░░░░░░ President Trump also taking ░░░░░░░░ at the Fed over ░░░░░░░░ interest rates as Susan ░░░░░░░░ just saying Watch My ░░░░░░░░ threat is the Fed ░░░░░░░░ the Fed is raising ░░░░░░░░ too fast It s ░░░░░░░░ so I don t ░░░░░░░░ to them but I ░░░░░░░░ not happy with what ░░░░░░░░ re doing Look at ░░░░░░░░ last inflation number They ░░░░░░░░ very low Dana I ░░░░░░░░ joined by the federal ░░░░░░░░ of the Federal Reserve ░░░░░░░░ Greenspan author of Capitalism ░░░░░░░░ America You hear the ░░░░░░░░ talking about the Independence ░░░░░░░░ the Fed but he ░░░░░░░░ not happy and saying ░░░░░░░░ publicly What do you ░░░░░░░░ I think the Fed ░░░░░░░░ doing just what it ░░░░░░░░ be doing at this ░░░░░░░░ I think that the ░░░░░░░░ is a long series ░░░░░░░░ presidents before him all ░░░░░░░░ very happy with the ░░░░░░░░ unhappy with the Fed ░░░░░░░░ rates Dana The economy ░░░░░░░░ Susan Lee just pointed ░░░░░░░░ very strong From your ░░░░░░░░ is it durable Can ░░░░░░░░ last for awhile First ░░░░░░░░ all the economy is ░░░░░░░░ sagging a bit It ░░░░░░░░ very significantly helped by ░░░░░░░░ corporate tax cut and ░░░░░░░░ deregulation But third quarter ░░░░░░░░ the fourth quarters of ░░░░░░░░ year are gonna be ░░░░░░░░ lot shorter than the ░░░░░░░░ we are looking at ░░░░░░░░ the most recent published ░░░░░░░░ So our estimates are ░░░░░░░░ in the second half ░░░░░░░░ you look at the ░░░░░░░░ monthly data of the ░░░░░░░░ that go into the ░░░░░░░░ They re not showing ░░░░░░░░ Dana Do you think ░░░░░░░░ Trump should be doing ░░░░░░░░ differently to try to ░░░░░░░░ the economy as strong ░░░░░░░░ it has No I ░░░░░░░░ he did the right ░░░░░░░░ in cutting taxes I ░░░░░░░░ he should stand pat ░░░░░░░░ that That has created ░░░░░░░░ very obvious change in ░░░░░░░░ quality of the economy ░░░░░░░░ to continuously comment after ░░░░░░░░ s talking about the ░░░░░░░░ of the Fed sounds ░░░░░░░░ me a bit awkward ░░░░░░░░ Let me ask you ░░░░░░░░ this on a bigger ░░░░░░░░ Senator Mitch McConnell asked ░░░░░░░░ it yesterday Take a ░░░░░░░░ to this It s ░░░░░░░░ by the three big ░░░░░░░░ programs that are very ░░░░░░░░ Medicare Social Security and ░░░░░░░░ That s 70 of ░░░░░░░░ we spend every year ░░░░░░░░ funding of the government ░░░░░░░░ about 30 of what ░░░░░░░░ spend There s been ░░░░░░░░ bipartisan reluctance to tackle ░░░░░░░░ changes because of the ░░░░░░░░ of those programs Hopefully ░░░░░░░░ some point here we ░░░░░░░░ get serious about this ░░░░░░░░ Entitlement spending We ve ░░░░░░░░ about it for a ░░░░░░░░ time in this country ░░░░░░░░ read it again this ░░░░░░░░ You conclude one of ░░░░░░░░ things in your conclusion ░░░░░░░░ that we have to ░░░░░░░░ with this issue How ░░░░░░░░ is it It s ░░░░░░░░ most serious problem confronting ░░░░░░░░ Congressional bug office for ░░░░░░░░ shows a significant opening ░░░░░░░░ of the deficit And ░░░░░░░░ 2019 is gonna be ░░░░░░░░ very large number deficit ░░░░░░░░ ve gone correctly in ░░░░░░░░ the spending side but ░░░░░░░░ ve done nothing with ░░░░░░░░ fact that there is ░░░░░░░░ entry bookkeeping You cannot ░░░░░░░░ a deficit going without ░░░░░░░░ There are no immediate ░░░░░░░░ consequences of deficits because ░░░░░░░░ far as the Congress ░░░░░░░░ concerned if nothing is ░░░░░░░░ then it s not ░░░░░░░░ But the real problem ░░░░░░░░ we open up the ░░░░░░░░ ultimately it will be ░░░░░░░░ and you will begin ░░░░░░░░ get inflationary pressures Dana ░░░░░░░░ me ask you one ░░░░░░░░ question You talk about ░░░░░░░░ s resilience and its ░░░░░░░░ position against China And ░░░░░░░░ think that America is ░░░░░░░░ quite a good position ░░░░░░░░ re optimistic about America ░░░░░░░░ able to compete with ░░░░░░░░ First of all China ░░░░░░░░ per capita GDP is ░░░░░░░░ third of that of ░░░░░░░░ United States They are ░░░░░░░░ we were in 1960 ░░░░░░░░ We re still in ░░░░░░░░ good position I find ░░░░░░░░ quite ironic that the ░░░░░░░░ wants us to be ░░░░░░░░ in the era where ░░░░░░░░ aluminum and coal and ░░░░░░░░ that Dana Alan Greenspan ░░░░░░░░ m gonna have to ░░░░░░░░ Thank you for coming ░░░░░░░░ we ll be right ░░░░░░░░