Wednesday, October 12, 2005

Greenspan says flexibility is the driving force

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.

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