Fed Chairman Alan Greenspan, delivering his semiannual assessment of the economy to the Senate Banking Committee, gave a cautious endorsement today to President Bush's plan to shift some Social Security funding to individual investment accounts.
Any solution to the problem created by the baby boom's impending retirement has to be solved by increased national wealth, he said, which in turn depends on increased savings or investment.
The individual investment accounts would contribute to national savings only if they could be financed by methods other than borrowing, and in order to slow the rate of borrowing by Social Security, benefits would have to be trimmed, Greenspan said.
"If we move to private accounts, which I approve of," the shift must be done cautiously, he said.
So either the Democrat's or full of it or Alan Greenspan is. Hmm ..., tough choice, huh?