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Sunday, October 23, 2016

Yellen: U.S. Inequality Near Highest Level In 100 Years

Yellen: U.S. Inequality Near Highest Level In 100 Years

Washington (AFP) – U.S. Federal Reserve chief Janet Yellen said Friday she is greatly concerned over the widening gap between the rich and poor in the United States.

Speaking in the U.S. city of Boston, Yellen said “income and wealth inequality are near their highest levels in the past hundred years” and have widened during the economic recovery.

In her speech at a conference on inequality, the Fed chair did not mention monetary policy nor the current turmoil in financial markets.

She noted the wealth gap has grown steadily over the past several decades, despite a brief pause during the 2008 crisis when the richest Americans lost money and increased government spending helped offset losses for the less wealthy.

“But widening inequality resumed in the recovery, as the stock market rebounded,” Yellen said, noting that “wage growth and the healing of the labor market have been slow, and the increase in home prices has not fully restored the housing wealth lost by the large majority of households for which it is their primary asset.”

The Fed chief noted that wide wealth disparities can make it harder for the poor to move up the income ladder, and also warned of the burden of student loan debt, which quadrupled between 2004 and 2014.

“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,” she said.

AFP Photo/Brendan Smialowski

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  • Independent1

    Below are a couple pie charts to illustrate what Janet Yellen was trying to bring out. One chart shows that “lower class” Americans which make up 80% of our population hold only 5% of America’s financial wealth, and the other shows that the “lower 80%” own only 11% of the entire ‘net worth” of America.

    80% of Americans are cumulatively hold only 5% of America’s entire wealth!!!

    If that’s not scary, what is????

  • Independent1

    And here’s an article from Think Progress which indicates that America’s income inequality is worse than that of the Ivory Coast in Africa, Pakistan and Ethiopia, and almost equal to the inequality in Uganda.

    See this excerpt:

    Income Inequality In U.S. Worse Than Ivory Coast, Pakistan, Ethiopia

    As ThinkProgress has repeatedly noted, crucial services and public investments for Main Street America are being gutted as taxes on the richest Americans are the lowest they’ve been in a generation. Yet many Americans may not know exactly how unfair this is, as the country has grown increasingly unequal at the same time. Using data from the CIA Factbook based on the Gini coefficient — a measure of income inequality within a society — ThinkProgress has assembled the following graph, which demonstrates that the United States is now about as economically unequal as Uganda and more unequal than countries like Pakistan or the Ivory Coast:

    See the article:

  • Captain Hadley

    Let’s be honest: Obama is the problem.

  • Hoo Me

    With the exception of liberals in America, no one in the world takes Obama or his marxist delusions seriously.

  • Swo Ford

    The myth of Obama is like an ever-shifting mirage of illusions conjured up to exploit the sympathies of the gullible and the ignorant.