Greenspan Issues Deficit Warning

[dArKeR]

Federal Reserve Chairman Alan Greenspan warned Wednesday that "substantial and excessive" federal budget deficits will over time harm the ability of the U.S. economy to expand strongly enough to drive down the unemployment rate.

In a second day of congressional testimony on the Fed's midyear economic forecast, Greenspan was more pointed in his criticism of soaring federal deficits than he had been in an appearance Tuesday before the House Financial Services Committee.

"There is no question that if you run substantial and excessive deficits over time you are draining savings from the private sector," Greenspan said, pointing to the area where economists believe deficits inflict the most harm on the economy.

http://www.cbsnews.com/stories/2003/06/03/national/main556712.shtml


http://www.geocities.com/darkerxdarker

[red_rasta]

1. Well duh.

That is all I have to say!

[lanlady]

2. but but .....

Those Harvard and Princeton economists were at the WH today telling Dubya that deficits "are just the right thing" during a recession. Poor dumb little me, I'm so confused by ekonomix.