Wednesday, October 12, 2005
Alan Greenspan has said economic flexibility is how to avoid recessions. Maximum competition has been the driving force to help the economy withstand a number of shocks. Since Greenspan took office in August 1987, the U.S. economy has undergone only two mild recessions, one in 1990-91 when oil prices surged after Iraq invaded Kuwait and the most recent one in 2001 when the bursting of the stock market bubble helped push the country into a downturn. Greenspan cautioned against government action to take away flexibility, such as by erecting barriers to protect U.S. industries and workers from global competition.