jon_forward
Active Member
http://news.yahoo.com/news?tmpl=story&u=/nm/20040212/us_nm/economy_greenspan_dc_12
what say yea now all non-believers???
I am in favor ... of continuing the tax cuts that are in dispute at this particular stage,"
Greenspan, testifying for a second straight day on the Fed's semiannual monetary policy report, twinned his tax-cut support with a fresh call on lawmakers to reinstate caps on much government spending and so-called pay-go rules requiring tax or spending plans be paid for elsewhere in the budget.
"One of the first orders of business of Congress would be to restore discretionary caps, and especially pay-go," he said, noting that if such rules were in place spending cuts would need to be found to make up for any revenues lost from extending tax cuts.
As before the House panel on Wednesday, Greenspan said controlling spending was especially crucial given the fiscal crunch the country will face when the Baby Boom generation begins to retire and draw benefits from the Social Security (news - web sites) retirement program.
"I think the sooner we address that, the sooner we can assure the people who will be retiring that the benefits that are promised will indeed be forthcoming," he said.
Absent a fix, Social Security will begin to pay out more than it collects in taxes by 2018, exhausting its trust fund by 2042. The Medicare program faces similar pressure. Its hospital trust fund is projected to run out by 2026.
In his opening remarks, Greenspan repeated the Fed's belief that the U.S. economy had turned the corner to vigorous growth and reiterated that the central bank could be patient in deciding when to rate interest rates from 1958 lows, in part because the jobs market had been so weak.
Greenspan said during questioning that the combination of rapid U.S. economic growth with few new jobs was unusual.
"I don't recall a period even remotely like this," he said. "What we are seeing is something new, it's something different."
However, Greenspan expressed confidence employment would pick up soon, saying businesses could not forever ramp up output without hiring.
As on Wednesday, the Fed chief faced a number of questions from lawmakers concerned about U.S. firms "outsourcing" jobs to foreign countries. He strongly urged lawmakers not to turn their backs on open trade.
.
what say yea now all non-believers???
I am in favor ... of continuing the tax cuts that are in dispute at this particular stage,"
Greenspan, testifying for a second straight day on the Fed's semiannual monetary policy report, twinned his tax-cut support with a fresh call on lawmakers to reinstate caps on much government spending and so-called pay-go rules requiring tax or spending plans be paid for elsewhere in the budget.
"One of the first orders of business of Congress would be to restore discretionary caps, and especially pay-go," he said, noting that if such rules were in place spending cuts would need to be found to make up for any revenues lost from extending tax cuts.
As before the House panel on Wednesday, Greenspan said controlling spending was especially crucial given the fiscal crunch the country will face when the Baby Boom generation begins to retire and draw benefits from the Social Security (news - web sites) retirement program.
"I think the sooner we address that, the sooner we can assure the people who will be retiring that the benefits that are promised will indeed be forthcoming," he said.
Absent a fix, Social Security will begin to pay out more than it collects in taxes by 2018, exhausting its trust fund by 2042. The Medicare program faces similar pressure. Its hospital trust fund is projected to run out by 2026.
In his opening remarks, Greenspan repeated the Fed's belief that the U.S. economy had turned the corner to vigorous growth and reiterated that the central bank could be patient in deciding when to rate interest rates from 1958 lows, in part because the jobs market had been so weak.
Greenspan said during questioning that the combination of rapid U.S. economic growth with few new jobs was unusual.
"I don't recall a period even remotely like this," he said. "What we are seeing is something new, it's something different."
However, Greenspan expressed confidence employment would pick up soon, saying businesses could not forever ramp up output without hiring.
As on Wednesday, the Fed chief faced a number of questions from lawmakers concerned about U.S. firms "outsourcing" jobs to foreign countries. He strongly urged lawmakers not to turn their backs on open trade.
.
