VALLEY FORGE, Pa. (TheStreet) -- Vanguard founder Jack Bogle says the American economy is back from the brink, but the nation could face debt problems like Europe's if it's not careful about borrowing.The index fund pioneer and author of the book Enough shared his views on the economy with TheStreet. What's your view of the recovery so far? Bogle:We have a very good recovery so far, but I see signs of slippage. I'm not sure that I believe we will have a double dip, another drop, but I don't see this recovery getting any stronger than it is now. Now that's not bad, but it's not good enough for us with all of the fiscal problems in Washington because a slow economy is a slow tax revenue producer. The way our government keeps adding on debt, we might be the next Greece or Spain. Do you see that happening here in the future? Bogle: It will absolutely happen here, unless we have the courage and perspective and wisdom to start to fix the mess we're in. In other words, we don't have a hopeless situation. We have a situation that is only hopeless if we refuse to deal with it. Unfortunately, I think one of the words that is rarely used to describe our Congress is courageous. We have a commission that the President has appointed to look into ways to improve or reduce the deficit, and it is amazing how many things could be done that wouldn't even be all that painful. Take social security, for example. If you were to have, let's say half a percent more revenues and half of percent less expenses, you would basically solve the problem within a few years. And the additional revenues could come from a higher retirement age, a higher taxable wage base, and the reduced expenses could come from a more modest cost of living adjustment gradually implemented so people would barely notice it. So social security could help get us back into balance. I happen to think that a big savings would come from a transfer tax on securities. One of the reasons we have all this speculation in the market is basically that the frictional costs have been taken out of trading. So when you read that one of these firms has an 11-second holding period, that's not quite my idea of the long-term.
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