Former Federal Reserve Chairman Alan Greenspan is either giving the viewing public a cranky old man performance, or the once highly regarded sage of economic matters and disciple of Ayn Rand really sees some structural problems in the overall economy of the United States.
On Sunday’s broadcast of NBC’s “Meet the Press,” Greenspan explained how the American economy will be transitioning from a “highly skilled, highly educated” workforce to an inferior one.
“As I watch what’s going on, we have to remember that over the next 10 years, we’re going to find that the baby boom generation – highly skilled, highly educated – is going to fade from the scene,” Greenspan said. “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.”
And when that happens Greenspan explained, that generation won’t be able to grow an economy at a pace needed to fund the entitlement programs which we have in place.
“This means 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,” Greenspan continued. “I consider the issue of cutting back spending as essentially which is something which is new. I don’t think we could afford it in the first place. So we’re merely canceling something which didn’t exist.”