and so it begins

25 Feb 2004

U.S. Federal Reserve Chairman Alan Greenspan, in testimony before the House Budget Committee on Feb. 25 stated, “The U.S. economy appears to have made the transition from a period of sub-par growth to one of more vigorous expansion,” and that the time had come to rein in federal spending to avoid deficits that could hobble long-term growth.

Care to guess which federal programs are asked to “tighten their belts” first?

Ah, no need, he’s already spelled it out:

U.S. Federal Reserve chair Alan Greenspan Wednesday urged Congress to consider a controversial solution to the country’s huge budget deficit: cut Social Security benefits for future retirees, rather than raise taxes.

Greenspan told a Congressional budget committee that the U.S. budget deficit, which is projected at $521 billion US this year, will widen once the baby boomers start retiring in four years time.

“This dramatic demographic change is certain to place enormous demands on our nation’s resources – demands we will almost surely be unable to meet unless action is taken,” Greenspan said.

“For a variety of reasons, that action is better taken as soon as possible.”

Man, I didn’t see that one coming!