In a recent post I complained about the state of social security, comparing it to a Ponzi scheme. In a recent interview with CNN Money, Alan Greenspan appears to agree on the urgency of the situation:
What should we be worried about most right now in terms of the economy?
Strangely enough, I think it's politics. We have a dysfunctional political system in the sense that there are very serious fiscal problems out there, most importantly Medicare. As best I can judge, when the baby boom retires, we are going to have to either raise taxes very sharply or cut benefits by half. No politician wants to confront this. And this is a very sad event because what's at stake here is the fiscal stability of the American government.