Janet Yellen came to the same conclusion I came to.
The Rich are getting richer and the poor are getting poorer. See you thought I just make this stuff up.
The Fed Chairman agrees with me. How nice. Now is the Fed going to do anything to fix the problem? Of course not….don’t be silly. But acknowledging it is always a nice first step.
Federal Reserve Chair Janet Yellen on Friday expressed deep concern over widening economic inequality in the country
Yellen said steady growth in inequality over the past several decades represents the most sustained rise since the 19th century. Living standards for most Americans have been “stagnant,” while those at the very top have enjoyed significant wealth and income gains
“I think it is appropriate to ask whether this trend is compatible with values rooted in our nation’s history, among them the high value Americans have traditionally placed on equality of opportunity,
Yellen listed four factors that can influence economic opportunity: investing in education for young children, making college more affordable, encouraging entrepreneurship and building inheritance.
(She forgot the part about not sending all your jobs to Communist Red China and India. I am sure she meant to say that though.)
the Fed has been frequently criticized for exacerbating the country’s yawning disparity in wealth as its easy-money policies helped Wall Street rebound quickly from the financial crisis.
(That is true….It is Janets fault the rich have all the money. She hopes you don’t notice her role in that though. Just look away.)
Yellen did not address in her prepared text whether the Fed has contributed to inequality. (The Fed has contributed) Nor did she weigh in on whether it may actually be slowing down economic growth, (Of course it is slowing down economic growth….If all the money is in the hands of a couple of hundred people, and they are not putting that money back into the economy, then how is the economy supposed to grow?) an idea that is gaining traction among economists but which remains controversial.
former Fed governor Kevin Warsh called the central bank’s actions a form of “reverse Robin Hood” (Take it from the poor and hand it to the rich….That is pretty much what has been happening.)
Yellen pointed to Fed data showing that the bottom half of homeowners by wealth lost 61 percent of the equity in their homes between 2007 and 2013. The top 5 percent lost 20 percent.
During testimony on Capitol Hill in February, she called the problem “one of the most disturbing trends facing the nation
Inequality has risen to the point that it seems to me worthwhile for the U.S. to seriously consider taking the risk of making our economy more rewarding for more of the people,