The U.S. could follow Sweden’s example to solve its problems with the welfare state, former Federal Reserve Chairman Alan Greenspan said.
Greenspan, who argues in his latest book that the growth of spending on social benefits corresponds to less innovation and entrepreneurship, said the real problem with entitlements was the refusal to fund them. Sweden has no problems supporting its expenditure even though it has one of the most generous welfare states in the world.
The Nordic nation “is a perfect example of a country that had the problem we had in the U.S. today, and they solved it,” Greenspan said via video link with an event in London. “It’s not the deficits, it’s the issue of not funding increased expenditures.”
There you go, even Alan Greenspan admits we can afford to pay for it.