Greenspan Says He Sees 'The First Signs' of Inflation in U.S.

The video discusses the tightening of labor markets, leading to rising wages without corresponding productivity increases, which have been historically low. This situation results in an economic equilibrium characterized by inflation and low productivity growth. The speaker suggests that the fundamental problem lies in excessive entitlements, which are legislated payments to certain groups. The solution involves addressing these entitlements, but political challenges make it difficult to implement economic conclusions.

What is the basic problem identified regarding expenditure, and how does it relate to entitlements?

What economic conclusion is drawn about the current state of entitlements?