Greenspan Says Look to Sweden to Solve U.S. Benefit Funding - Bloomberg

Greenspan Says Look to Sweden to Solve U.S. Benefit Funding - Bloomberg



...The Nordic nation “is a perfect example of a country that had the problem we had in the U.S. today, and they solved it,” Greenspan said via video link with an event in London. “It’s not the deficits, it’s the issue of not funding increased expenditures.”



...The Scandinavian nation has a reputation for providing expensive cradle-to-grave social welfare, but in the 1990s the country moved over from a defined benefit to a defined contribution system.



...While the U.S. and many other industrialized countries are struggling with large unfunded pension programs, Sweden’s is constructed to be a self-correcting, pay-as-you-go-system designed to remain in balance permanently.