Fox Business on May 26, 2016, reported a warning from Alan Greenspan: Western World has a problem of a shortage in productivity growth. It is headed for a state of disaster. Excerpts below:
“What the Fed does at this particular stage is less important than what the markets are doing. And what the markets are beginning to show us is acceleration in money supply for the first time in a very long time… We have a global problem of a shortage in productivity growth and it’s not only the United States but it’s pretty much around the world and it’s being caused by the fact that the populations everywhere in the Western world, for example, are aging and we are not committing enough of our resources to fund that,” Greenspan said.
The main thing confronting the US and the global economy is long-term economic growth.
I think you have a very profound long-term problem of economic growth at the time when the Western world, there is a very large migration from being a worker into being a recipient of social benefits as it is called. And this is legally mandated in all of our countries.
Former Reagan budget director David Stockman earlier told Fox’s Neil Cavuto the U.S. could be on the verge of a market economic collapse but Greenspan says “we need not go that far.”
Comment:Western civilization in the beginning of the 21st century is facing a number of dangers.. Europe and North America are facing declining populations if the immigrant population is not counted. At the same time Asian and African countries need to consider population limitation. In the West there is a cultural issue associated with aging. The creativity and cultural progress that comes with the youth of the population is less strong when its proportion of the total population is decreasing. In addition the West is presently challenged by three anti-Western empires: China, Iran/Persia and Russia.