Bill Bennett: “I am interested to find out that Alan Greenspan and the Fed are now responsible for the disparity between the rich and…”

“I am interested to find out that Alan Greenspan and the Fed are now responsible for the disparity between the rich and poor, according to this morning's paper. The fact is, Mr. President, there are fundamental economic laws that have operated in the 1950's, the 1970's, the 1990's, and will operate into the next century. The most fundamental of these is: You cannot repeal the law of supply and demand. Attempts to artificially repeal the law of supply and demand by artificial fiat make us feel good in the short run, but they get us into trouble in the long run. The most significant thing the Fed can do is control the money supply in such a way as to keep prices stable so markets can operate. When we try to fiddle with markets by Government fiat, we get into all kinds of trouble and end up paying tremendous prices for that later on. I support Chairman Greenspan's nomination, and I support his stewardship at the Fed.”