Looking back at that belief during hearings this fall on Capitol Hill, Alan Greenspan said out loud, I have found a flaw. Congressman Henry Waxman pushed him, responding, In other words, you found that your view of the world, your ideology, was not right; it wasn't working. Absolutely, precisely, Greenspan said.
In his reflections during congressional hearings, Alan Greenspan admitted to discovering a significant mistake in his prior beliefs regarding economic ideologies. This acknowledgment came as he faced challenging questions from Congressman Henry Waxman, who highlighted the discrepancy between Greenspan's longstanding views and the realities of the economic situation. Greenspan's candid admission marked a pivotal moment in recognizing the limitations of his earlier theories.
The exchange underscores a broader theme in Joseph E. Stiglitz's "The Great Divide," where the author examines the growing inequalities in society and the failures of past economic policies. The dialogue between Greenspan and Waxman illustrates the need for rethinking economic ideologies that may no longer be effective, emphasizing the necessity for new frameworks to address inequalities and ensure equitable growth.
