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Alan Greenspan Says Look to Sweden to Solve U.S. Entitlement Problem

  • Former Fed chief says paying for entitlements poses problems
  • He spoke to an audience in London via video link on Monday
Alan Greenspan

Alan Greenspan

Photographer: Andrew Harrer/Bloomberg

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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 -- not the guarantees of help from the government per se. Sweden has no problems supporting itself even though it has one of the most generous welfare states in the world.