"The fiscal system is out of whack. And while I approve wholeheartedly of the corporate tax cut and deregulation, the corporate tax cut unquestionably causes the deficit to rise and we are not funding it by other means," Greenspan said in an interview with Fox News.
Greenspan said that the United States is in the process of moving toward stagflation.
Without funding for the tax cut, productivity will be unable to grow and accelerate, Greenspan added.
Greenspan, an economist, who served as Chairman of the Federal Reserve of the United States from 1987 to 2006 and is currently working as a private adviser.