Fed Bank Pres: US economic inequality threatens American Democracy

[Rose Siding]

Another Item on the Fed Worry List: Inequality
“There are signs that rising inequality is intensifying resistance to globalization, impairing social cohesion, and could, ultimately, undermine American democracy,” Janet Yellen, president of the Federal Reserve Bank of San Francisco, said in remarks prepared for delivery Monday night to the Center for the Study of Democracy at the University of California, Irvine.

“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,” she said. Although such questions aren’t part of the Fed’s legal mandate, both Fed Chairman Ben Bernanke and his predecessor, Alan Greenspan, also have publicly warned of the dangers that economic inequality poses to the U.S.

Before joining the San Francisco Fed, Ms. Yellen, a longtime economics professor at the University of California at Berkeley, did a stint as an economic adviser to President Clinton and a member of the Federal Reserve Board in Washington.

http://blogs.wsj.com/washwire/2006/11/07/another-item-on-the-fed-worry-list-inequality/

[Hosnon]

1. My thoughts exactly. Wealth redistribution is not a bad thing. The benefits

GREATLY outweigh the costs...if it is done properly.

[leftyclimber]

2. "the risk of making our economy more rewarding for more of the people"

The RISK?

Gimme a break.

[indepat]

3. The Congress giving one man dictatorial power threatens American Democracy

[jmellman]

4. So dead on -- how come it took so long to "recognize"

As we look at the "death" of the middle class, it's amazing that the moneyed classes haven't realized this is their achilles heel. they have tried everything to convince people to vote against their interests. But if people begin to doubt the system, it will fail.

Wonder what they are going to recommend? More propaganda?