Janet Yellen's remarks were new to hear to me. There has not been much emphasis on income inequality in the U.S. and I feel like that is done on purpose. She did a good job at attacking the subject from the angle of morality and American values becuase I'm sure that it something hard to ignore for the American Public. However, I noticed on the side of the webpage, a link titled "Federal Reserve Chair Janet Yellen makes less than 113 other staffers at the Fed". I'm sure if someone were to catch that, they might feel it discredit Yellen's motives and character. They might question if she's only saying this because she doesn't get paid as much and is really fighting for herself while using the American people as her pitch,
I found the take that she took on inequality interesting. In order to grab the attention of Americans less sympathetic to poverty and inequality she used a very unique take. She attempts to persuade the public that the highly the level of inequality we face the more it will actually harm our entire economy as a whole: something people who 'don't care' about poverty will care about. I think she does a good job of trying to get the attention of everyone to show that this is a serious issue.
I found Janet Yellen’s potential solutions to rising inequality in the U.S quiet interesting because they were all new things to me. The idea that inequality fosters more inequality is the sad truth, and Yellen’s approach to this is very unique. She believes that early childhood education, making college cheaper and helping entrepreneurs could possibly help stop this cycle of inequality. Which I agree with because the more opportunities given to the poor the more likely they are to advance in this economic ladder and therefore help reduce the costs of inequality.
What stuck out to me about this article is not the rising levels of inequality, sometimes associated with recession or even economic depression, it was the point that inequality leads to more inequality. This point is becoming more and truer, and is fostered by this society. A rich family is very likely to stay rich, while a poor family is very likely to stay poor. With the diminishing mobility in America, if this doesn't change, we could be headed for significant economic repercussions.
Yellen wrote this article with an ominous voice clearly expressing urgency. Yet, like the first commentator suggested, there's not an emphasis on inequality in the US. I think that no one really addresses this. What will it take for people to understand the severity of this issue? Who can rectify this problem before it it is too late and how can it be done?I'd like to see the patriotic zeal that so many of us Americans have being put to good use. We must preserve this great nation by pressuring decision makers to do just what Yellen suggested as solutions: early childhood education, make college cheaper, and help entrepreneurs.
A few things stood out to me in this article. One part I found particularly interesting was when Yellen was quoted saying that this economic inequality is un-American. To me this statement was interesting, because one could argue that the American dream allows for this inequality to occur, because some people work harder than others. But on the other side the issue remains that those who work extremely hard are not always compensated fairly. I think in order to ease economic inequalities there does need to be some form of reorganizing. The government should help step in to create a better atmosphere for those who simply do not have the option to succeed finically. These stimulus packages need to be better suited for the everyday American citizen instead of helping only those who are wealthy. My final thought while reading this passage was how difficult it is to understand the America’s economy. I’m in my fourth year of college, and grew up with successful and intelligent parents and yet I still have difficulties understanding the intricate details that keep our economy afloat. I think the government needs to help people understand the economy.
I think that taking an approach that shows the overall negative economic effects of inequality is a strategic move on Yellen's part. Its hard to argue whether or not inequality exists because there is data to prove it, however a lot of people argue that its not a problem, or its not a problem they are responsible to fix. However when you present it as possibly effecting them directly, I think it would make people much more inclined to fix inequality. I also thought that she made many interesting points about the repercussions of inequality that I haven't heard made before, for example she said that inequality leads to more inequality, and inequality in general is unpatriotic. - Ana Kyriakos
As the author mentions towards the end, that stagnant wages besides stimulus is a cause of inequality in the United States. Why do we not just control and regulate wages more closely? The best way we can lower inequality is through wage. Increase all workers pay mostly middle class workers or those on the border of becoming middle class. Then decrease the top 20 percent pay wages. We would also need to regulate cost and sales at the same time making sure no one is charging over a certain percent profit of an item. -Joshua Zidek
I found this article about income inequality to be very interesting. I had never heard of Janet Yellen, before reading this; however, I love how knowledgeable, honest and straight forward she was throughout her speech. Her rhetoric is also highly persuasive. She made income inequality, a problem that all Americans are facing and questioned their patriotism.
It is pleasing to see that someone in the government is raising awareness regarding the alarming increase in inequality. Many like to believe that it is not a major issue in the United States when in fact causes many problems in our nation. I agree with one of the points Yellen makes, “And if the have-nots have fewer opportunities to climb the economic ladder, that hurts the general health and vibrancy of the economy.” As mentioned in the documentary Inequality for All, the middle class are the ones who create jobs, they are the ones who consume the products. If they do not have the means to do so they cannot consume, which evidently hurts the economy. Furthermore, something that stood out to me the most was that Yellen considers inequality “un-America.” Ironically, individuals, immigrants, come to the United States hoping to live the “American dream,” believing that there are many opportunities available to them. Simultaneously, we are having major issues of inequality. Which contradicts foreigners’ believes.
This article has given me some hope because it is good to see (like Nalia stated) that someone in the government realizes that inequality is a huge issue. It is good to see that Janet Yellen realizes the startling effect that inequality can have on the nation. Although many citizens do not see inequality as a big problem, hopefully this article can strike some fear into their eyes and make them realize through their wallets that inequality is a domino effect. Unfortunately, the wealthy will continue to be wealthy through the effects of inequality as is always the case.
I found the comment "Yellen suggested such inequality is downright un-American" to be kind of funny. It is the most American thought that people should be allowed to work hard and make their own fortune. However, once people do make their fortune and create large gaps increasing income inequality suddenly it is un-American. I agree that everyone should have equal opportunities, but I don't think very low income inequality is needed to have those opportunities.
Economic inequality is a real issue in our country and should be treated as such. As mentioned in the article, the inequality we have now is the at the highest level since pre-depression times. And the measure being taken to close the gap are benefiting the rich through stocks and other areas of ownership. The benefits need to be directed toward the lower and middle classes which is why i think the focus on strong education at the grade school level and affordable education at the collegiate level is an excellent place to start. Education is crucial to mobility because if the education playing field is leveled, it wont matter what type of background you come from. This is obviously a very difficult task but certainly one that should be explored. This is also a Congressional issue becuase it is up to them to take action to combat the issue.
It is concerning that inequality in the U.S. is so high and that certain measures of it are reaching Great Depression levels. The economy does not need to go through another recession right now, as the people on the lower levels of the equality scale will be the most negatively impacted. A part of the article that really struck me was the discussion about how this increase of inequality has also created an inequality of opportunity. The people at the higher end of the income spectrum have more opportunities to increase their wealth while people at the lower end of the spectrum have less opportunity. This is a cyclical relationship and only perpetuates the inequality gap in the U.S. I think that more efforts should be made to reduce this inequality and create equal opportunity for U.S. citizens.
This article is a good summary of a lot of the messages that are being taught in this class. Although the Federal Reserve cannot directly make changes and laws that would shrink the income inequality gap, they are not helping the process. By passing stimulus, they have actually accelerated and widened the income inequality gap in the United States. This is not right. The Federal Reserve, the institution that prints the very money that we use, should have may powers that allow them to progress towards a lower margin of income inequality. They should not have to rely on Congress to pass bills because as of late, congress has been the most unproductive (in terms of passing legislation) that it has ever been int it's history. The fact that income inequality in America is the largest that it has been since the great depression is not helped by the fact that the rich get richer. As stated in the article, "the wealthiest 5 percent of Americans own two-thirds of all stocks, bonds, mutual funds and other such financial assets." This gives them an advantage to making money through the market, which adds even more to America's increasing income inequality.
The stance that Yellen has on inequality is an interesting one. Instead of focusing on the idea that rising levels of inequality is having a negative effect of the disadvantaged population, she focuses on something that may appeal to the less liberal sections of society; the economy. It is suggest that decreasing levels of inequality will help strengthen the economy. She even suggests that “inequality is downright un-American”. I know how patriotic you Americans can be.
While this is the first time I have heard these comments, I am not surprised they have come from Ms. Yellen. She is well known for her relative populism compared to past chairs of the Federal Reserve.
I appreciate her comments how the Fed has in the past favored policies that cause inequality. While she has referred to the bailout and stimulus measures as being a cause for this, I believe the federal reserve has been favoring the rich longer than this. This has been seen since the 1980's.
I support her ideas to level the opportunity playing field. Essentially, expanding the educational system on each side of the spectrum (early education and more affordable college) will really help the problem. At the same time, there needs be changes for many public school systems in the United States that place more emphasis on lower income areas and weaker systems.
I found this article by Yellen to be very interesting. Yes it is clear that there are raging arguments over the extent and shape of inequality which makes it fragile and must be taken carefully in the numbers. However, I feel that there’s more than inequality that Yellen’s worried about. I feel that she might have an ulterior motive. We see that business ownership is on the top distribution of income and it doesn’t usually get brought up when it comes to discussions on equal opportunity. May it be that businesses provide economic benefits that are significant for families that are below income wealth?
Income inequality is a problem that is so difficult to solve. I was thinking of solutions of how we can help make income inequality less. I was thinking about how education is a way to get a job in this country. The problem is College has cost me over $120,000, luckily my parents were able to pay that. If that wasn't the case I would of had to take out student loans. I was watching a documentary about college and it said that the first really loan and purchase you work to pay off you inter life is a mortgage but now with the rising cost and rising need for a college education it is like you are buying a home before you buy a home. so for some people they can't afford college which makes it difficult to even get a job in the first place. That is just one of many problems for income inequality.
I am not sure if the suggestions she made would fully be able to solve inequality. It would certainly be taking a step in the right direction though. I think it's interesting how inequality could lead to a recession and yet no one is doing anything about it. Its actually quite a scary thought to say the least.
Yellen definitely has a point that income inequality harms the U.S. economy. I do agree that reducing the costs of college and helping entrepreneurs is a solution, but it’s not going to fix the system. With the well-off having the advantage and holding the majority of stock and wealth in America, the system isn’t going to change without a fight
Janet Yellen's comments on inequality are shocking but not surprising. She notes that the rich own over 2/3 of all stocks and bonds and a majority of mortgages in the US. While this is a known fact, her possible solutions could have a profound effect on inequality in America. Putting more money and initiatives in early childhood education would be a great way to assist with peoples learning development later in life. If we were to better our schools at all levels, people would be able to have greater access to education and eventually be able to go to college and obtain jobs that will help decrease inequality.
Janet Yellen's remarks in this article, especially coming from being in the position of acting Federal Reserve Chairman, are spot on and get to the root of the issue of income inequality in America. She doesn't beat around the bush, and she puts the situation in honest terms. In light of that however, this is one of those "water is wet"/"the sky is blue" kind of articles. Clearly, if a person is taking an honest look at income inequality, they would (or should) just *know* that harm will come to the economy if all or the majority of citizens cannot participate in it and are being priced out of it, via both market pricing and income stagnation. And of course, as has come to be expected, Congress is too buried in partisan mess to even attempt to address this issue honestly and create legislation to level the playing field and try to reduce income inequality.
This is an article that essencially incorporates everything that we are learning in class. Yellen mentions how the people who are 'well off' (e.g. the wealthy) have more economic opportunities than the poor, which will eventually lead to even more inequality. The fact that the article stated that its almost at 'its highest level since the Great Depression' is very disturbing. I remember hearing about the Great Depression and how awful it was on the country and how it destroyed the economy back in the 1930s and to think that we are close to that today is scary especially when I am thinking about my future.
Janet Yellen is talking about income inequality which has been a topic that many people have been addressing. However, it is not shocking to me that Congress has done nothing about it. I think the public needs to apply a lot of pressure to Congress in order to have action. As we have seen in our readings and video clips, the richest have influence over people in the government and it will be hard to gain policies that promote income equality. But the greed of the richest have led to devastating economic consequences in the past and we cannot depend on them to change their minds.
Congress is pretty much helpless against the banks at this point. The one advantage we have is freedom of assembly but public opinion has been moot on the whole deal. and any possibility possibility to drive people the people in chrage because of the super pacs as well. Michael Marinelli
It's ridiculous that people still think that income inequality is not an issue. The Chairman of the Federal Reserve (Janet Yellen), should not have to make a public statement to address this. Of course, I am not surprised that Congress has done nothing to address this issue, but the most interesting point I found in the article was that The Federal Reserve actually has made income inequality worse, while the Chairman is championing that Congress do something about it. This should be a collaborative effort, yet, The Fed is expecting Congress to take over the responsibility for a problem that they helped make salient. The responsibility should be in the hands of all the people, yet, the public has not done anything to change this; people champion income equality while their actions prove different. Go Capitalism!
Janet Yellen's views on income inequality are very interesting to me. After yesterdays class activity, I feel like i understand why less is done to curve inequality. The issue is too huge to be fixed by one solution. I think education is important for the advancement on society. However, it is unrealistic to say even with equal opportunities and education everyone will become more equal. Inequality is something that will not be fixed in the near future. It is important to start making steps towards it though. That is why I do think education can help.
It such a difficult job to fight inequality in the United States. There will always be inequality in some sort of way. I really do not think you can eliminate inequality. Even if you started everyone back from zero, some would be more successful. I think the biggest problem is unequal opportunity for people.
It is great to see someone with such a high position in the U.S. government who will speak the truth. Janet Yellen makes many relatable and appropriate points on the status of the economy. She makes note that stimulus packages only made the already rich even more wealthy as well as the fact that two thirds of stocks and bonds are owned by the top five percent of the population. "....she suggested a handful of possible solutions, including early childhood education, making college cheaper and helping entrepreneurs." All these solutions are more than agreeable yet the federal bank has no authority to see that any plans concerning these areas can/will be implemented. I'm sure Congress heard them but yet....nothing. Yellen also makes a very good point about equal opportunity which ties into her list of possible solutions.
Increase in inequality is associated with recessions. While people at the top are getting rich and doing well for themselves, they are hurting the overall stability of the economy and endangering. I admire Yellen for calling out the injustice of opportunity inequality and questioning our values.
I think this article is sort of pointless. I am not sure who Janet Yellen’s target audience is. It is obvious that high income inequality is bad for the economy. I believe that most people are aware of the problem. We live in a consumer based society and when a vast majority of the wealth is held by a small group of individuals the rest of the population is at a serious disadvantage. As it is mentioned in the article, wealth generates wealth. I think it is funny that Yellen brings up the issue of income inequality and gives a speech about how it’s “un-American” and how it needs to be fixed, but at the same time the article mentions the actions that the Federal Reserve have taken have benefited the wealthy immensely and only marginally aided the lower to middle class homeowners. Our economy depends on people spending money and when a large portion of the population has no money, or cannot afford to spend any of what they have then of course we would expect the economy to be in danger. Yellen says that we need to fix the problem, but she offers no concrete ideas or solutions. I am not necessarily bashing Yellen, I just think that there is not much to this article other than there is material for us to read and comment on in relation to our course material about income inequality.
After reading this article, I now seriously question the motives and ideals of the United States economy. I agree with Yellen that this perpetuation of inequality is "downright un-American" . As a minute amount of wealthy Americans have a substantial amount of wealth within this country, it makes sense that their risky usage and investment of money will have a profoundly negative effect on our economy.
It's nice to see someone standing up and saying something about a huge problem we are facing. The levels of inequality are at an all time high and it is rough in our economy and it is only going to be getting worse unless something is done. For once it is nice to hear something critical in the government that doesn't take a necessarily single out one party or the other, instead calling alarm to the system as a whole, and trying to right a sinking ship.
I think that it is great that she is taking a stand on inequality. She is correct in saying that inequality is high and that something needs to be done, however I feel that this argument has been going on for a long time without any real results. Instead of just criticizing the system, why not ask what can we do to change it. Until then, it will be the same argument but no progress.
Yellen raises normative awareness in my opinion, the income inequality is obviously un-American, the idea is to understand why, the billionaire class pays less percentage on taxes than most middle income families, the point being, middle income (working class) consumes more and attributes more the economy than the few rich, now maybe if the rich spent their value in worth it would be different, but the rocking class is our backbone, and we aren't receiving any help, the economic ladder is harder than every to climb. Although it is nice to have a gov. official speaking out of term for once -Crash
I love Yellen stance on the subject. Inequality is at an high right now and it will come to bad consequences. In human nature throughout history when individuals become oppress by financial institutions then they will start to rebel against the nation. Not sure if America reached that point but we need to fix the inequality shown in our nation.
Yellen's views on the current state of the economy and how it can further regress due to the economic inequality. Many persons in politics don't want to address this problem but it has to be highlighted and a part of this discussion before it worsens. Big industries only care about the profit and the end of the day and could not care less about the people or even the economy, once they can maximize funds and cut corners with the help of those in the political world because they know they will be fine, with or withour the rest. - Maulford Smith
It’s hardly surprising that income inequality is bad for the United States economy. If you have more poor people, the United States will have to pay for more social programs and welfare. Additionally, inequality makes it hard for those without a lot of wealth to climb the economic ladder because there are less opportunities. When money is held predominately by those at the top, it takes longer for opportunities to open up at the bottom. Less people with less money at the bottom means more debt and less money flowing through our economy.
Perhaps not a major point in the article, but the concept of “including early childhood education, making college cheaper…” struck me as a point that I should comment on. Education is often a necessity we hear from politicians and civilians that should be granted to all. I definitely agree with this idea. What I think the conversation needs to head towards is looking at quality versus quantity, when it comes to education. This most of all includes support. Inequality trickles itself not only down the line of economy, but multiple facets that contribute to sustaining the system of inequality. So yes, having early childhood education is important, but making sure that the students are in a position to learn, have the opportunity and environment that helps them succeed and be college-ready is also important. The quality comes to play in assuring that the students have learned the material, not just measured by a score on a standardized test. This also means giving students the support to make a plan that will help them be successful and choose a career-path that will help them to gain a job. This will allow them to be active consumers in this economy, not remain unemployed after college because the major they chose does not have employment demand. Many of these major also rely on an early development and strength in certain subject matter that if not harnessed and fully learned early on, places them at a disadvantage among other peers in the future. These sets of support structures in the system are also what are contributing to the stagnant growth of the economy.
Now inequality is "un-American"? Inequality at a certain level is "un-American", so does that mean that there is an acceptable level of inequality that is ingrained in not only American history, but future? Inequality is only a worry when it will dramatically impact the people at the top. While the rich could care less if poor people remained poor or not, everyone was hit by the recession and no one would want to go through that again. This is when it becomes a problem. It is not surprising that Congress has not done anything to help combat inequality, because they do not care enough.
The best way we can lower inequality is through wage. Increase all workers pay mostly middle class workers or those on the border of becoming middle class. Then decrease the top 20 percent pay wages. However, if I was in the top 20 percent I wouldn't want my wages to change at all.
I completely agree with Yelen's stance on this issue. Soaring income inequality has never done the American economy any good. We have already been through crises such as the great depression and the great recession as a result of this. I just wonder when the next crisis will happen or if things will ever change. -Damarr Gordon
I've said this before, the rich need the rest of us to have a decent living so that they remain rich and have something to do with themselves. There is a cycle that needs to remain in motion in order for our economy to soar. I feel like people know what is going on around them, but until it directly effects those with the money, nothing is going to change. And that last part is just overall human nature, most people don't care unless they are directly effected, and that is the bigger issue. What is sad is that even with the latest crisis that took place, the already rich were not effected in the way that they should have been...it's all just very sad.
I always find it interesting when people say that inequality is "un-american" considering that inequality was literally built into the Constitution. The framers made many rules and regulations to prevent certain groups of people from obtaining voting rights because they thought that they would destroy the country. One thing that bothered me throughout this article that they kept mentioning some indicator of economic inequality that is at Great Depression levels, but they never actually mentioned the indicator. Also Janet Yellen made policy recommendations but has no power to create them and seems to be unable to influence congressman to create them. I feel that as a member of the Fed she should have some kind of authority or ability to influence the economy past the creation of stimulus'. Her job seems to be economic stabilization and a strong middle class is the key to a stable economy so I feel like she along with the Fed should have some kind of greater economic pull than they seem to demonstrate.
The quote that stuck out to me after reading this article was "... inequality tends to foster even more inequality." I completely agree with this statement and I believe that our society will never truly reach the level of total equality because we need each individual class (low, middle and high) to survive. Until the rich are willing to come down share their power with the lower and middle classes, America will continue to struggle with the inequality crisis. Congress listens and completely ignores suggestions made to lower college tuitions and early childhood education because they know the real truth.
I found this article pretty interesting. In particular, the remarks of the Swiss bank, Credit Suisse, who said that the levels of inequality in the United States are dangerously reminiscent of the levels during the Great Depression. I never really considered that inequality could affect the economy, I always look at it from and individual and moral perspective. Inequality for me is morally wrong, and therefore, it needs to be changed. That's about all there is to it. Or at least, that's as far as I had ever thought about it. Also, I thought it was interesting that the author took it as a shock that Congress did not want to make a change for more equality in the United States. From my understanding, members of Congress are rather well of themselves, and consistently vote on pay raises for themselves. So why would they want more taxes and reallocation of wealth? It doesn't benefit them.
Interesting take about income inequality being un-American. Usually, I hear the opposite-if you work hard, you will get reward. Yet the truth is, there are many working poor. The problem is our payment system and not the work ethics of the normal American worker.
This reminds me of the exercise that we did in class on Wednesday - drafting an initiative to eliminate economic equality. Yellen proposed a couple of ideas that were synonymous with the ideas that we pitched in our group - cheaper college education, and improving early education. Our group struggled a lot with prioritizing because we all felt our own ideas were better than the others. I guess this is representative of the government, they can't come up with an overall plan because of all the dissent.
I have often heard people talk about how we are at the highest level of inequality since the Great Depression, but have never seen a graph to illustrate it so simply. I thought Yellen was extremely bold in her statements, but that it was nothing I have not heard yet, especially in recent years and with a Democratic president. If any group of Americans strive to uphold "American values" the most, it is conservative Americans, who also seem to be the ones least interested in fixing the inequality gap because it is typically a liberal pursuit.
Janet Yellen's remarks were spot on. I knew income inequality was high, but it was enlightening to know that it hasn't been this high since the Great Depression. Something needs to be done about this before we head to another Great Depression. Equal opportunities need to made for all people so everyone has a chance to meet their full potential so that the economy can thrive. Keeping wealth from people who have the abilities to become wealthy is despicable. People need to stop looking down on those who have less money than them and try to understand the root of the problem.
Janet Yellen is the first person to put in perspective to me why income inequality is a problem for the whole economy and not just a certain set of individuals. I always thought that America was a capitalistic society and therefore income inequality should be accepted. Yellen explains that with so many individuals not having access to a high quality of life, it is going to impede on the growth of our economy. The fact that the statistics today are similar to that of great recessions and the great depression is disturbing, and this is an issue that needs to be addressed by the government.
Janet Yellen's remarks were new to hear to me. There has not been much emphasis on income inequality in the U.S. and I feel like that is done on purpose. She did a good job at attacking the subject from the angle of morality and American values becuase I'm sure that it something hard to ignore for the American Public. However, I noticed on the side of the webpage, a link titled "Federal Reserve Chair Janet Yellen makes less than 113 other staffers at the Fed". I'm sure if someone were to catch that, they might feel it discredit Yellen's motives and character. They might question if she's only saying this because she doesn't get paid as much and is really fighting for herself while using the American people as her pitch,
ReplyDeleteSemira Tesfai
I found the take that she took on inequality interesting. In order to grab the attention of Americans less sympathetic to poverty and inequality she used a very unique take. She attempts to persuade the public that the highly the level of inequality we face the more it will actually harm our entire economy as a whole: something people who 'don't care' about poverty will care about. I think she does a good job of trying to get the attention of everyone to show that this is a serious issue.
ReplyDeleteAdam Bloom-Paicopolos
I found Janet Yellen’s potential solutions to rising inequality in the U.S quiet interesting because they were all new things to me. The idea that inequality fosters more inequality is the sad truth, and Yellen’s approach to this is very unique. She believes that early childhood education, making college cheaper and helping entrepreneurs could possibly help stop this cycle of inequality. Which I agree with because the more opportunities given to the poor the more likely they are to advance in this economic ladder and therefore help reduce the costs of inequality.
ReplyDeleteWhat stuck out to me about this article is not the rising levels of inequality, sometimes associated with recession or even economic depression, it was the point that inequality leads to more inequality. This point is becoming more and truer, and is fostered by this society. A rich family is very likely to stay rich, while a poor family is very likely to stay poor. With the diminishing mobility in America, if this doesn't change, we could be headed for significant economic repercussions.
ReplyDeleteYellen wrote this article with an ominous voice clearly expressing urgency. Yet, like the first commentator suggested, there's not an emphasis on inequality in the US. I think that no one really addresses this. What will it take for people to understand the severity of this issue? Who can rectify this problem before it it is too late and how can it be done?I'd like to see the patriotic zeal that so many of us Americans have being put to good use. We must preserve this great nation by pressuring decision makers to do just what Yellen suggested as solutions: early childhood education, make college cheaper, and help entrepreneurs.
ReplyDelete-Erica Puentes
A few things stood out to me in this article. One part I found particularly interesting was when Yellen was quoted saying that this economic inequality is un-American. To me this statement was interesting, because one could argue that the American dream allows for this inequality to occur, because some people work harder than others. But on the other side the issue remains that those who work extremely hard are not always compensated fairly.
ReplyDeleteI think in order to ease economic inequalities there does need to be some form of reorganizing. The government should help step in to create a better atmosphere for those who simply do not have the option to succeed finically. These stimulus packages need to be better suited for the everyday American citizen instead of helping only those who are wealthy.
My final thought while reading this passage was how difficult it is to understand the America’s economy. I’m in my fourth year of college, and grew up with successful and intelligent parents and yet I still have difficulties understanding the intricate details that keep our economy afloat. I think the government needs to help people understand the economy.
I think that taking an approach that shows the overall negative economic effects of inequality is a strategic move on Yellen's part. Its hard to argue whether or not inequality exists because there is data to prove it, however a lot of people argue that its not a problem, or its not a problem they are responsible to fix. However when you present it as possibly effecting them directly, I think it would make people much more inclined to fix inequality. I also thought that she made many interesting points about the repercussions of inequality that I haven't heard made before, for example she said that inequality leads to more inequality, and inequality in general is unpatriotic.
ReplyDelete- Ana Kyriakos
As the author mentions towards the end, that stagnant wages besides stimulus is a cause of inequality in the United States. Why do we not just control and regulate wages more closely? The best way we can lower inequality is through wage. Increase all workers pay mostly middle class workers or those on the border of becoming middle class. Then decrease the top 20 percent pay wages. We would also need to regulate cost and sales at the same time making sure no one is charging over a certain percent profit of an item.
ReplyDelete-Joshua Zidek
I found this article about income inequality to be very interesting. I had never heard of Janet Yellen, before reading this; however, I love how knowledgeable, honest and straight forward she was throughout her speech. Her rhetoric is also highly persuasive. She made income inequality, a problem that all Americans are facing and questioned their patriotism.
ReplyDeleteLindsey Stalnaker
It is pleasing to see that someone in the government is raising awareness regarding the alarming increase in inequality. Many like to believe that it is not a major issue in the United States when in fact causes many problems in our nation. I agree with one of the points Yellen makes, “And if the have-nots have fewer opportunities to climb the economic ladder, that hurts the general health and vibrancy of the economy.” As mentioned in the documentary Inequality for All, the middle class are the ones who create jobs, they are the ones who consume the products. If they do not have the means to do so they cannot consume, which evidently hurts the economy. Furthermore, something that stood out to me the most was that Yellen considers inequality “un-America.” Ironically, individuals, immigrants, come to the United States hoping to live the “American dream,” believing that there are many opportunities available to them. Simultaneously, we are having major issues of inequality. Which contradicts foreigners’ believes.
ReplyDeleteThis article has given me some hope because it is good to see (like Nalia stated) that someone in the government realizes that inequality is a huge issue. It is good to see that Janet Yellen realizes the startling effect that inequality can have on the nation. Although many citizens do not see inequality as a big problem, hopefully this article can strike some fear into their eyes and make them realize through their wallets that inequality is a domino effect. Unfortunately, the wealthy will continue to be wealthy through the effects of inequality as is always the case.
ReplyDeleteI found the comment "Yellen suggested such inequality is downright un-American" to be kind of funny. It is the most American thought that people should be allowed to work hard and make their own fortune. However, once people do make their fortune and create large gaps increasing income inequality suddenly it is un-American. I agree that everyone should have equal opportunities, but I don't think very low income inequality is needed to have those opportunities.
ReplyDeleteEconomic inequality is a real issue in our country and should be treated as such. As mentioned in the article, the inequality we have now is the at the highest level since pre-depression times. And the measure being taken to close the gap are benefiting the rich through stocks and other areas of ownership. The benefits need to be directed toward the lower and middle classes which is why i think the focus on strong education at the grade school level and affordable education at the collegiate level is an excellent place to start. Education is crucial to mobility because if the education playing field is leveled, it wont matter what type of background you come from. This is obviously a very difficult task but certainly one that should be explored. This is also a Congressional issue becuase it is up to them to take action to combat the issue.
ReplyDeleteJack O'Connor
It is concerning that inequality in the U.S. is so high and that certain measures of it are reaching Great Depression levels. The economy does not need to go through another recession right now, as the people on the lower levels of the equality scale will be the most negatively impacted. A part of the article that really struck me was the discussion about how this increase of inequality has also created an inequality of opportunity. The people at the higher end of the income spectrum have more opportunities to increase their wealth while people at the lower end of the spectrum have less opportunity. This is a cyclical relationship and only perpetuates the inequality gap in the U.S. I think that more efforts should be made to reduce this inequality and create equal opportunity for U.S. citizens.
ReplyDeleteThis article is a good summary of a lot of the messages that are being taught in this class. Although the Federal Reserve cannot directly make changes and laws that would shrink the income inequality gap, they are not helping the process. By passing stimulus, they have actually accelerated and widened the income inequality gap in the United States. This is not right. The Federal Reserve, the institution that prints the very money that we use, should have may powers that allow them to progress towards a lower margin of income inequality. They should not have to rely on Congress to pass bills because as of late, congress has been the most unproductive (in terms of passing legislation) that it has ever been int it's history. The fact that income inequality in America is the largest that it has been since the great depression is not helped by the fact that the rich get richer. As stated in the article, "the wealthiest 5 percent of Americans own two-thirds of all stocks, bonds, mutual funds and other such financial assets." This gives them an advantage to making money through the market, which adds even more to America's increasing income inequality.
ReplyDeleteThe stance that Yellen has on inequality is an interesting one. Instead of focusing on the idea that rising levels of inequality is having a negative effect of the disadvantaged population, she focuses on something that may appeal to the less liberal sections of society; the economy. It is suggest that decreasing levels of inequality will help strengthen the economy. She even suggests that “inequality is downright un-American”. I know how patriotic you Americans can be.
ReplyDeleteWhile this is the first time I have heard these comments, I am not surprised they have come from Ms. Yellen. She is well known for her relative populism compared to past chairs of the Federal Reserve.
ReplyDeleteI appreciate her comments how the Fed has in the past favored policies that cause inequality. While she has referred to the bailout and stimulus measures as being a cause for this, I believe the federal reserve has been favoring the rich longer than this. This has been seen since the 1980's.
I support her ideas to level the opportunity playing field. Essentially, expanding the educational system on each side of the spectrum (early education and more affordable college) will really help the problem. At the same time, there needs be changes for many public school systems in the United States that place more emphasis on lower income areas and weaker systems.
I found this article by Yellen to be very interesting. Yes it is clear that there are raging arguments over the extent and shape of inequality which makes it fragile and must be taken carefully in the numbers. However, I feel that there’s more than inequality that Yellen’s worried about. I feel that she might have an ulterior motive. We see that business ownership is on the top distribution of income and it doesn’t usually get brought up when it comes to discussions on equal opportunity. May it be that businesses provide economic benefits that are significant for families that are below income wealth?
ReplyDeleteIncome inequality is a problem that is so difficult to solve. I was thinking of solutions of how we can help make income inequality less. I was thinking about how education is a way to get a job in this country. The problem is College has cost me over $120,000, luckily my parents were able to pay that. If that wasn't the case I would of had to take out student loans. I was watching a documentary about college and it said that the first really loan and purchase you work to pay off you inter life is a mortgage but now with the rising cost and rising need for a college education it is like you are buying a home before you buy a home. so for some people they can't afford college which makes it difficult to even get a job in the first place. That is just one of many problems for income inequality.
ReplyDeleteI am not sure if the suggestions she made would fully be able to solve inequality. It would certainly be taking a step in the right direction though. I think it's interesting how inequality could lead to a recession and yet no one is doing anything about it. Its actually quite a scary thought to say the least.
ReplyDelete-Matt Fera
Yellen definitely has a point that income inequality harms the U.S. economy. I do agree that reducing the costs of college and helping entrepreneurs is a solution, but it’s not going to fix the system. With the well-off having the advantage and holding the majority of stock and wealth in America, the system isn’t going to change without a fight
ReplyDeleteJanet Yellen's comments on inequality are shocking but not surprising. She notes that the rich own over 2/3 of all stocks and bonds and a majority of mortgages in the US. While this is a known fact, her possible solutions could have a profound effect on inequality in America. Putting more money and initiatives in early childhood education would be a great way to assist with peoples learning development later in life. If we were to better our schools at all levels, people would be able to have greater access to education and eventually be able to go to college and obtain jobs that will help decrease inequality.
ReplyDeleteJanet Yellen's remarks in this article, especially coming from being in the position of acting Federal Reserve Chairman, are spot on and get to the root of the issue of income inequality in America. She doesn't beat around the bush, and she puts the situation in honest terms. In light of that however, this is one of those "water is wet"/"the sky is blue" kind of articles. Clearly, if a person is taking an honest look at income inequality, they would (or should) just *know* that harm will come to the economy if all or the majority of citizens cannot participate in it and are being priced out of it, via both market pricing and income stagnation. And of course, as has come to be expected, Congress is too buried in partisan mess to even attempt to address this issue honestly and create legislation to level the playing field and try to reduce income inequality.
ReplyDeleteThis is an article that essencially incorporates everything that we are learning in class. Yellen mentions how the people who are 'well off' (e.g. the wealthy) have more economic opportunities than the poor, which will eventually lead to even more inequality. The fact that the article stated that its almost at 'its highest level since the Great Depression' is very disturbing. I remember hearing about the Great Depression and how awful it was on the country and how it destroyed the economy back in the 1930s and to think that we are close to that today is scary especially when I am thinking about my future.
ReplyDeleteJanet Yellen is talking about income inequality which has been a topic that many people have been addressing. However, it is not shocking to me that Congress has done nothing about it. I think the public needs to apply a lot of pressure to Congress in order to have action. As we have seen in our readings and video clips, the richest have influence over people in the government and it will be hard to gain policies that promote income equality. But the greed of the richest have led to devastating economic consequences in the past and we cannot depend on them to change their minds.
ReplyDeleteCongress is pretty much helpless against the banks at this point. The one advantage we have is freedom of assembly but public opinion has been moot on the whole deal. and any possibility possibility to drive people the people in chrage because of the super pacs as well.
ReplyDeleteMichael Marinelli
It's ridiculous that people still think that income inequality is not an issue. The Chairman of the Federal Reserve (Janet Yellen), should not have to make a public statement to address this. Of course, I am not surprised that Congress has done nothing to address this issue, but the most interesting point I found in the article was that The Federal Reserve actually has made income inequality worse, while the Chairman is championing that Congress do something about it. This should be a collaborative effort, yet, The Fed is expecting Congress to take over the responsibility for a problem that they helped make salient. The responsibility should be in the hands of all the people, yet, the public has not done anything to change this; people champion income equality while their actions prove different. Go Capitalism!
ReplyDeleteactions *(no action at all)
DeleteJanet Yellen's views on income inequality are very interesting to me. After yesterdays class activity, I feel like i understand why less is done to curve inequality. The issue is too huge to be fixed by one solution. I think education is important for the advancement on society. However, it is unrealistic to say even with equal opportunities and education everyone will become more equal. Inequality is something that will not be fixed in the near future. It is important to start making steps towards it though. That is why I do think education can help.
ReplyDeleteIt such a difficult job to fight inequality in the United States. There will always be inequality in some sort of way. I really do not think you can eliminate inequality. Even if you started everyone back from zero, some would be more successful. I think the biggest problem is unequal opportunity for people.
ReplyDeleteIt is great to see someone with such a high position in the U.S. government who will speak the truth. Janet Yellen makes many relatable and appropriate points on the status of the economy. She makes note that stimulus packages only made the already rich even more wealthy as well as the fact that two thirds of stocks and bonds are owned by the top five percent of the population. "....she suggested a handful of possible solutions, including early childhood education, making college cheaper and helping entrepreneurs." All these solutions are more than agreeable yet the federal bank has no authority to see that any plans concerning these areas can/will be implemented. I'm sure Congress heard them but yet....nothing. Yellen also makes a very good point about equal opportunity which ties into her list of possible solutions.
ReplyDeleteIncrease in inequality is associated with recessions. While people at the top are getting rich and doing well for themselves, they are hurting the overall stability of the economy and endangering. I admire Yellen for calling out the injustice of opportunity inequality and questioning our values.
ReplyDeleteI think this article is sort of pointless. I am not sure who Janet Yellen’s target audience is. It is obvious that high income inequality is bad for the economy. I believe that most people are aware of the problem. We live in a consumer based society and when a vast majority of the wealth is held by a small group of individuals the rest of the population is at a serious disadvantage. As it is mentioned in the article, wealth generates wealth. I think it is funny that Yellen brings up the issue of income inequality and gives a speech about how it’s “un-American” and how it needs to be fixed, but at the same time the article mentions the actions that the Federal Reserve have taken have benefited the wealthy immensely and only marginally aided the lower to middle class homeowners. Our economy depends on people spending money and when a large portion of the population has no money, or cannot afford to spend any of what they have then of course we would expect the economy to be in danger. Yellen says that we need to fix the problem, but she offers no concrete ideas or solutions. I am not necessarily bashing Yellen, I just think that there is not much to this article other than there is material for us to read and comment on in relation to our course material about income inequality.
ReplyDeleteAfter reading this article, I now seriously question the motives and ideals of the United States economy. I agree with Yellen that this perpetuation of inequality is "downright un-American" . As a minute amount of wealthy Americans have a substantial amount of wealth within this country, it makes sense that their risky usage and investment of money will have a profoundly negative effect on our economy.
ReplyDeleteIt's nice to see someone standing up and saying something about a huge problem we are facing. The levels of inequality are at an all time high and it is rough in our economy and it is only going to be getting worse unless something is done. For once it is nice to hear something critical in the government that doesn't take a necessarily single out one party or the other, instead calling alarm to the system as a whole, and trying to right a sinking ship.
ReplyDeleteMichael Lerche
I think that it is great that she is taking a stand on inequality. She is correct in saying that inequality is high and that something needs to be done, however I feel that this argument has been going on for a long time without any real results. Instead of just criticizing the system, why not ask what can we do to change it. Until then, it will be the same argument but no progress.
ReplyDeleteYellen raises normative awareness in my opinion, the income inequality is obviously un-American, the idea is to understand why, the billionaire class pays less percentage on taxes than most middle income families, the point being, middle income (working class) consumes more and attributes more the economy than the few rich, now maybe if the rich spent their value in worth it would be different, but the rocking class is our backbone, and we aren't receiving any help, the economic ladder is harder than every to climb. Although it is nice to have a gov. official speaking out of term for once
ReplyDelete-Crash
I love Yellen stance on the subject. Inequality is at an high right now and it will come to bad consequences. In human nature throughout history when individuals become oppress by financial institutions then they will start to rebel against the nation. Not sure if America reached that point but we need to fix the inequality shown in our nation.
ReplyDeleteYellen's views on the current state of the economy and how it can further regress due to the economic inequality. Many persons in politics don't want to address this problem but it has to be highlighted and a part of this discussion before it worsens. Big industries only care about the profit and the end of the day and could not care less about the people or even the economy, once they can maximize funds and cut corners with the help of those in the political world because they know they will be fine, with or withour the rest. - Maulford Smith
ReplyDeleteIt’s hardly surprising that income inequality is bad for the United States economy. If you have more poor people, the United States will have to pay for more social programs and welfare. Additionally, inequality makes it hard for those without a lot of wealth to climb the economic ladder because there are less opportunities. When money is held predominately by those at the top, it takes longer for opportunities to open up at the bottom. Less people with less money at the bottom means more debt and less money flowing through our economy.
ReplyDeletePerhaps not a major point in the article, but the concept of “including early childhood education, making college cheaper…” struck me as a point that I should comment on. Education is often a necessity we hear from politicians and civilians that should be granted to all. I definitely agree with this idea. What I think the conversation needs to head towards is looking at quality versus quantity, when it comes to education. This most of all includes support. Inequality trickles itself not only down the line of economy, but multiple facets that contribute to sustaining the system of inequality. So yes, having early childhood education is important, but making sure that the students are in a position to learn, have the opportunity and environment that helps them succeed and be college-ready is also important. The quality comes to play in assuring that the students have learned the material, not just measured by a score on a standardized test. This also means giving students the support to make a plan that will help them be successful and choose a career-path that will help them to gain a job. This will allow them to be active consumers in this economy, not remain unemployed after college because the major they chose does not have employment demand. Many of these major also rely on an early development and strength in certain subject matter that if not harnessed and fully learned early on, places them at a disadvantage among other peers in the future. These sets of support structures in the system are also what are contributing to the stagnant growth of the economy.
ReplyDeleteNow inequality is "un-American"? Inequality at a certain level is "un-American", so does that mean that there is an acceptable level of inequality that is ingrained in not only American history, but future? Inequality is only a worry when it will dramatically impact the people at the top. While the rich could care less if poor people remained poor or not, everyone was hit by the recession and no one would want to go through that again. This is when it becomes a problem. It is not surprising that Congress has not done anything to help combat inequality, because they do not care enough.
ReplyDeleteThe best way we can lower inequality is through wage. Increase all workers pay mostly middle class workers or those on the border of becoming middle class. Then decrease the top 20 percent pay wages. However, if I was in the top 20 percent I wouldn't want my wages to change at all.
ReplyDeleteI completely agree with Yelen's stance on this issue. Soaring income inequality has never done the American economy any good. We have already been through crises such as the great depression and the great recession as a result of this. I just wonder when the next crisis will happen or if things will ever change. -Damarr Gordon
ReplyDeleteI've said this before, the rich need the rest of us to have a decent living so that they remain rich and have something to do with themselves. There is a cycle that needs to remain in motion in order for our economy to soar. I feel like people know what is going on around them, but until it directly effects those with the money, nothing is going to change. And that last part is just overall human nature, most people don't care unless they are directly effected, and that is the bigger issue. What is sad is that even with the latest crisis that took place, the already rich were not effected in the way that they should have been...it's all just very sad.
ReplyDeleteI always find it interesting when people say that inequality is "un-american" considering that inequality was literally built into the Constitution. The framers made many rules and regulations to prevent certain groups of people from obtaining voting rights because they thought that they would destroy the country. One thing that bothered me throughout this article that they kept mentioning some indicator of economic inequality that is at Great Depression levels, but they never actually mentioned the indicator. Also Janet Yellen made policy recommendations but has no power to create them and seems to be unable to influence congressman to create them. I feel that as a member of the Fed she should have some kind of authority or ability to influence the economy past the creation of stimulus'. Her job seems to be economic stabilization and a strong middle class is the key to a stable economy so I feel like she along with the Fed should have some kind of greater economic pull than they seem to demonstrate.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThe quote that stuck out to me after reading this article was "... inequality tends to foster even more inequality." I completely agree with this statement and I believe that our society will never truly reach the level of total equality because we need each individual class (low, middle and high) to survive. Until the rich are willing to come down share their power with the lower and middle classes, America will continue to struggle with the inequality crisis. Congress listens and completely ignores suggestions made to lower college tuitions and early childhood education because they know the real truth.
ReplyDeleteI found this article pretty interesting. In particular, the remarks of the Swiss bank, Credit Suisse, who said that the levels of inequality in the United States are dangerously reminiscent of the levels during the Great Depression. I never really considered that inequality could affect the economy, I always look at it from and individual and moral perspective. Inequality for me is morally wrong, and therefore, it needs to be changed. That's about all there is to it. Or at least, that's as far as I had ever thought about it.
ReplyDeleteAlso, I thought it was interesting that the author took it as a shock that Congress did not want to make a change for more equality in the United States. From my understanding, members of Congress are rather well of themselves, and consistently vote on pay raises for themselves. So why would they want more taxes and reallocation of wealth? It doesn't benefit them.
Interesting take about income inequality being un-American. Usually, I hear the opposite-if you work hard, you will get reward. Yet the truth is, there are many working poor. The problem is our payment system and not the work ethics of the normal American worker.
ReplyDeleteThis reminds me of the exercise that we did in class on Wednesday - drafting an initiative to eliminate economic equality. Yellen proposed a couple of ideas that were synonymous with the ideas that we pitched in our group - cheaper college education, and improving early education. Our group struggled a lot with prioritizing because we all felt our own ideas were better than the others. I guess this is representative of the government, they can't come up with an overall plan because of all the dissent.
ReplyDeleteI have often heard people talk about how we are at the highest level of inequality since the Great Depression, but have never seen a graph to illustrate it so simply. I thought Yellen was extremely bold in her statements, but that it was nothing I have not heard yet, especially in recent years and with a Democratic president. If any group of Americans strive to uphold "American values" the most, it is conservative Americans, who also seem to be the ones least interested in fixing the inequality gap because it is typically a liberal pursuit.
ReplyDeleteJanet Yellen's remarks were spot on. I knew income inequality was high, but it was enlightening to know that it hasn't been this high since the Great Depression. Something needs to be done about this before we head to another Great Depression. Equal opportunities need to made for all people so everyone has a chance to meet their full potential so that the economy can thrive. Keeping wealth from people who have the abilities to become wealthy is despicable. People need to stop looking down on those who have less money than them and try to understand the root of the problem.
ReplyDeleteJanet Yellen is the first person to put in perspective to me why income inequality is a problem for the whole economy and not just a certain set of individuals. I always thought that America was a capitalistic society and therefore income inequality should be accepted. Yellen explains that with so many individuals not having access to a high quality of life, it is going to impede on the growth of our economy. The fact that the statistics today are similar to that of great recessions and the great depression is disturbing, and this is an issue that needs to be addressed by the government.
ReplyDelete-Jeremy Levin