CFR.org has the video, and blogs.wsj.com provides a summary:
Greenspan said that the U.S. needs to do something now to deal with budget deficits and it must do something very soon. He explained his anxiety is so high that "I'm coming out in the first time in my memory" in support of higher taxes in addition to reduced spending, including allowing the so-called Bush tax cuts to expire.
Via Future of Capitalism.
Anyone who isn't on the receiving side of government spending has to be holding out hope for a reduction of the budget deficit as well as a reduction of the overall debt the nation faces. But the problem with Mr. Greenspan's proposition is that higher taxes generally don't result in higher revenues. But even if it were true, there is no guarantee that any revenue gained from higher taxes will be used to reduce the deficit. Instead, the government we have is borrowing money and distributing it to favored constituents. Any increased revenue due to higher taxes, should there even be an increase in revenue, would simply go down that same hole.
Greenspan did a pretty good job as Fed chairman, give or take a few glitches. But among the things included in Mr. Greenspan's legacy is his encouragement of home buyers to get adjustable rate mortgages. His prescription for higher taxes during a recession could even top that.
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