WHEN: Today, Friday, February 7, 2014
WHERE: CNBC's "Squawk Box"
Following are excerpts from the unofficial transcript of a CNBC interview with Alan Greenspan, former Federal Reserve Chairman, today on CNBC's "Squawk Box." Following are links to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000244104 and http://video.cnbc.com/gallery/?video=3000242101.
All references must be sourced to CNBC.
GREENSPAN ON WAGE LEVELS
There is a huge number of people outside our borders who would love to come here. In fact, many of them come here, get well educated, and then are required to leave….This is a factor in income inequality. That is, if you brought in a lot of people, especially in the high skilled levels, they would compete with all the people that have been guests on the program, myself included, and bring our wage levels down.
GREENSPAN ON IMMIGRATION
We have a very serious economic problem. We have a very serious structural problem with respect to skills and we can solve them both with a simple, simple act which isn't all that significant. It's merely fundamentally changing the very minor allowance of the skilled workforce into the United States and we've got to stop that.
GREENSPAN ON CONFIDENCE
What I see in the corporate sector is very clearly an issue of a major shortfall in the issue of, what some people call confidence, but whatever you want to call it. Clearly people are looking out in the very distant future and they are saying that it is too complex. And in fact, how can we possibly know, for example, what the tax rate is going to be thirty years from now?
GREENSPAN ON TWO FORCES
It's two major forces which are driving us here. One is the so called cyclically adjusted deficit, which is draining private savings and in fact, is a major problem. And it shows very strongly in the statistics as a cause of this problem. The second is a very unusual issue, which is the spread between the 30-year Treasury and the 5-year Treasury note. That is a measure of the degree of long term, very long term lack of confidence. And that spread is at the widest level in American history. That to me tells you a great deal. There's where the problem is. That's what's got to be solved.
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