Greenspan: Forget Stimulus, Let Markets Take Over

Government spending is less effective than we hoped
By Nick McMaster,  Newser Staff
Posted Sep 15, 2010 3:05 PM CDT
Former Federal Reserve Chairman Alan Greenspan testifies on Capitol Hill in Washington, Wednesday, April 7, 2010.   (AP Photo/J. Scott Applewhite)

(Newser) – Alan Greenspan says stimulus spending isn't perking up the economy as much as hoped—and that at this point, it's better to let businesses and the markets handle the recovery, the Wall Street Journal reports. “We’d probably be better off doing less than more” because “you’d be far better off to allow the normal market forces to operate here,” Greenspan told a panel at the Council on Foreign Relations.

“I’m not saying the stimulus is not working, I’m saying it’s working far less than anyone anticipated,” Greenspan said, as quoted by Bloomberg. “We have to find a way to settle down the extent of activism that is currently going on.” The former Fed chief also came down in favor of raising taxes to curb the deficit in his wide-ranging discussion. For more news on the stimulus, click here. (Read more stimulus funds stories.)

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