Former Federal Reserve chief Alan Greenspan says the economy will start to fade 'very dramatically' because of the structural burden of Social Security and Medicare Long-term economic growth will dramatically recede 'because of entitlements' Former Fed Reserve chief Alan Greenspan issued a dire warning that programs such as Medicare and Social Security would push economic growth off a cliff He pointed to a vast, ageing population that represents an enormous burden He added that Europe's economic struggles coupled the entitlements in the U.S. make for a turbulent set of circumstances, despite current solid financial growth Greenspan added: 'We've got this significant continued drain coming from entitlements, which are basically draining capital investment dollar for dollar'
By Rod Ardehali For Dailymail.com
Published: 15:43 BST, 13 April 2019 | Updated: 22:38 BST, 13 April 2019
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Entitlements are draining capital reserves 'dollar for dollar' according to the former Federal Reserve Chairman, Alan Greenspan.
Greenspan, 93, who was known as the 'Maestro' during his 19-year tenure which ran from the Reagan to the George W. Bush administrations, said the cost of Social Security and Medicare programs would eventually push economic growth off a cliff.
He pointed to a rapidly ageing population for the eventual significant downturn, despite the U.S. economy enjoying solid growth of late.
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