Greenspan Warns U.S. Can’t Afford Tax Cuts, Debt Levels Too High

BY Murrey Jacobson  September 23, 2010 at 4:18 PM EDT

Back in 2001, when then-Federal Reserve Chairman Alan Greenspan gave the Bush-era tax cuts his blessing, it was considered a pivotal moment that helped shape that debate. Nearly a decade later, Greenspan tells Jeffrey Brown that he now believes the cuts should not be extended when they expire at the end of the year.

The debt levels, Greenspan argues, are forcing politicians to make choices that fall somewhere between “terrible and catastrophic.” These excepts come from the second of our conversations on whether to extend tax cuts and the potential consequences for the American economy. You can catch the full interview on Friday’s PBS NewsHour broadcast.