The Washington Post today reports that the economic worries of Americans just are not registering with lawmakers on Capitol Hill. While many people spend their days worried about gas prices, rising inflation and a falling stock market, lawmakers are busy interfering with the court system and trying to increase the deficit by privatizing Social Security. Increasingly, Congress and the President are just out of touch with the economic worries of Americans. Now it seems they are out of touch with the economic worries of the Federal Reserve Chairman.
Alan Greenspan testified today before the Senate Budget Committee and had this to say:
Indeed, under existing tax rates and reasonable assumptions about other spending, these projections make clear that the federal budget is on an unsustainable path, in which large deficits result in rising interest rates and ever-growing interest payments that augment deficits in future years. But most important, deficits as a percentage of GDP in these simulations rise without limit. Unless that trend is reversed, at some point these deficits would cause the economy to stagnate or worse.
So the Federal Reserve Chairman is basically saying to President Bush and his allies in Congress, “keep this up and you’ll bankrupt the country.” Future generations will be stuck with the bill.
– Theo LeCompte