Greenspan Real Growth Comes from Capitalism

By: Curtis Wayne   3/18/2019

In a new interview, Alan Greenspan says the U.S. is going to experience stagflation with a sluggish economy with a GDP around 2%.

“… we are going to be dealing with stagflation, not a recession, but a very sluggish economy in which the GDP is below I would say 2% annual rate.”

“I don’t think recession is the right term, it’s a sluggish type of system out there which is largely stagflation, which is a combination of rising unemployment and rising inflation.  Neither one of those are moving now, but that is the direction we are heading.”

When asked about Capitalism vs Socialism and the left’s push for the Green new deal, Greenspan said:

“First of all let’s get the definitions correct. Capitalism is when all the means of production are owned by private individuals.  Socialisms is when the same means of production is owned by the state.  Communism is when the individual society, the people in it, all work for the government and are essentially told what to do.”

Greenspan just finished a new book - "Capitalism in America"

Greenspan is correct to say that real growth comes from capitalism (saving and investing), but we have to remember when he was running the Federal Reserve he printed money, which destroys real growth.  Greenspan started the massive money printing tailspin that we are currently on.  

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