March 15, 2005

Washington, DC – Chairman Gordon Smith (R-OR) today conducted the Aging Committee’s second hearing on Social Security in the 109th Congress. The committee heard testimony from Federal Reserve Chairman Alan Greenspan that focused on the economics of America’s retirement system and the long-term solvency of Social Security.

“Keeping our retirement system secure for current and future generations of seniors is my top priority as Chairman of the Aging Committee,” said Smith. “In order to accomplish this goal we must first have an open and honest debate on the impact of our decisions, and I’m pleased Chairman Greenspan was able to share his views on the economics of Social Security with this committee today.”

Greenspan’s testimony, his most comprehensive to date on the subject, explored the impact America’s retirement system will have on the economy in the coming years. The Fed chair said that “failure to address the imbalances between our promises to future retirees and our ability to meet those promises would have severe consequences for the economy.” Greenspan reiterated that making any necessary changes to the system will become increasingly difficult the longer they are delayed, and urged Congress to thoroughly review not only proposed changes to Social Security, but to assess their affect on the economy as a whole.

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