Note that Greenspan said: "the unprecedented slowdown in savings starting in 1965 eventually funded a persistent below-average growth of capital investment and hence of nonfarm output per hour between 1973 and 1995, with estimates of growth closer to a 1.4 percent annual rate than to the average annual rate between 1870 and 1970 of 2.2 percent."
Greenspan: "The trade-off between social benefits (mainly Social Security, Medicare, and Medicaid) and savings, is almost a dollar-for-dollar substitution of consumption for gross domestic savings. That detracts from the funding of capital investments, and hence from output per hour".
(S “≠” I). And Greenspan in his book: "The Map and its Territory" said "the dramatic decline in the rate of domestic savings" was responsible for the "share of GDP devoted to capital investment."
No objection except to point out that it is a bit weird for the _Fed_ to be worried about productivity. Its job is to facilitate relative price movements needed for markets to clear and resources to move to their best uses. This CONTRIBUTES to productivity but does not require the Fed to be concerned about productivity per se.
Note that Greenspan said: "the unprecedented slowdown in savings starting in 1965 eventually funded a persistent below-average growth of capital investment and hence of nonfarm output per hour between 1973 and 1995, with estimates of growth closer to a 1.4 percent annual rate than to the average annual rate between 1870 and 1970 of 2.2 percent."
Greenspan: "The trade-off between social benefits (mainly Social Security, Medicare, and Medicaid) and savings, is almost a dollar-for-dollar substitution of consumption for gross domestic savings. That detracts from the funding of capital investments, and hence from output per hour".
(S “≠” I). And Greenspan in his book: "The Map and its Territory" said "the dramatic decline in the rate of domestic savings" was responsible for the "share of GDP devoted to capital investment."
No objection except to point out that it is a bit weird for the _Fed_ to be worried about productivity. Its job is to facilitate relative price movements needed for markets to clear and resources to move to their best uses. This CONTRIBUTES to productivity but does not require the Fed to be concerned about productivity per se.