Federal Reserve chair calls income inequality the biggest challenge in next 10 years

HayJenn

Moderator
Jul 2014
63,645
51,921
CA
#1
Federal Reserve Chairman Jerome H. Powell said that the U.S. economy is in a “good place” but warned that income inequality is the nation’s biggest economic challenge in the coming decade. “We want prosperity to be widely shared,” Powell said Wednesday evening. “We need policies to make that happen.”

The Fed leader was speaking at a town hall event with teachers when one asked him about the top head winds in the next 10 years. Powell, who was appointed by President Trump but has been a frequent target of Trump’s ire, said he was concerned that income growth for middle- and working-class Americans “has really decreased,” while “growth at the top has been very strong.”

Powell pointed out that the United States used to be a global leader in mobility — the ability of people born into poverty to move up to the middle class or even the wealthiest echelons of society. But that is no longer true. “The U.S. lags now in mobility. And that’s not our self-image as a country, nor is it where we want to be,” he said.

At the Fed, Powell said he is focused on keeping the economy growing and boosting productivity. He said that he didn’t think the Fed could do much to lower inequality, but he called on other policymakers to take action, saying, “We have some work to do to make sure that the prosperity we do achieve is widely spread.”

https://www.washingtonpost.com/busi...-challenge-next-years/?utm_term=.2ea8689df29f

He is right about income inequality being a bad problem

One-quarter of American workers make less than $10 per hour. That creates an income below the federal poverty level. These are the people who wait on you every day. They include cashiers, fast food workers, and nurse's aides. Or maybe they are you.

The rich got richer through the recovery from the 2008 financial crisis. In 2012, the top 10 percent of earners took home 50 percent of all income. That's the highest percentage in the last 100 years. The top 1 percent took home 20 percent of the income, according to a study by economists Emmanuel Saez and Thomas Piketty.

By 2015, America’s top 10 percent already averaged more than nine times as much income as the bottom 90 percent. And Americans in the top 1 percent averaged over 40 times more income than the bottom 90 percent. The chart below shows a breakdown of average household incomes ranging from the bottom 90 percent to the top .1 percent.

The True Cause of Income Inequality in America


With fewer and fewer people being the "middle class", there will be major problems with our economic viability in the future.
 
Feb 2019
316
76
Florida
#2
Federal Reserve Chairman Jerome H. Powell said that the U.S. economy is in a “good place” but warned that income inequality is the nation’s biggest economic challenge in the coming decade. “We want prosperity to be widely shared,” Powell said Wednesday evening. “We need policies to make that happen.”

The Fed leader was speaking at a town hall event with teachers when one asked him about the top head winds in the next 10 years. Powell, who was appointed by President Trump but has been a frequent target of Trump’s ire, said he was concerned that income growth for middle- and working-class Americans “has really decreased,” while “growth at the top has been very strong.”

Powell pointed out that the United States used to be a global leader in mobility — the ability of people born into poverty to move up to the middle class or even the wealthiest echelons of society. But that is no longer true. “The U.S. lags now in mobility. And that’s not our self-image as a country, nor is it where we want to be,” he said.

At the Fed, Powell said he is focused on keeping the economy growing and boosting productivity. He said that he didn’t think the Fed could do much to lower inequality, but he called on other policymakers to take action, saying, “We have some work to do to make sure that the prosperity we do achieve is widely spread.”

https://www.washingtonpost.com/busi...-challenge-next-years/?utm_term=.2ea8689df29f

He is right about income inequality being a bad problem

One-quarter of American workers make less than $10 per hour. That creates an income below the federal poverty level. These are the people who wait on you every day. They include cashiers, fast food workers, and nurse's aides. Or maybe they are you.

The rich got richer through the recovery from the 2008 financial crisis. In 2012, the top 10 percent of earners took home 50 percent of all income. That's the highest percentage in the last 100 years. The top 1 percent took home 20 percent of the income, according to a study by economists Emmanuel Saez and Thomas Piketty.

By 2015, America’s top 10 percent already averaged more than nine times as much income as the bottom 90 percent. And Americans in the top 1 percent averaged over 40 times more income than the bottom 90 percent. The chart below shows a breakdown of average household incomes ranging from the bottom 90 percent to the top .1 percent.

The True Cause of Income Inequality in America


With fewer and fewer people being the "middle class", there will be major problems with our economic viability in the future.
I don't know what it is about these big mouth Fed Chairmen. We haven't had a responsible one since Alan Greenspan. (He appeared on ONE talk show and markets crashed, so he later on decided NEVER to give any public interviews.)

Income inequality is something that happens worldwide. Those $10 an hour workers are RICH compared to the DOLLAR A YEAR workers in Somalia who live in the mud. And in America, ANYBODY can move up the ladder. People born in humble circumstances find ways to move up every day.

We really need a RESPONSIBLE Fed Chairman who will do his job and keep his goddam mouth shut.
 

HayJenn

Moderator
Jul 2014
63,645
51,921
CA
#3
I don't know what it is about these big mouth Fed Chairmen. We haven't had a responsible one since Alan Greenspan. (He appeared on ONE talk show and markets crashed, so he later on decided NEVER to give any public interviews.)

Income inequality is something that happens worldwide. Those $10 an hour workers are RICH compared to the DOLLAR A YEAR workers in Somalia who live in the mud. And in America, ANYBODY can move up the ladder. People born in humble circumstances find ways to move up every day.

We really need a RESPONSIBLE Fed Chairman who will do his job and keep his goddam mouth shut.
So no actual comment on the actual topic? Just another lame rant? Shocker!!!

Read the rules again btw.
 
Jul 2013
51,600
54,861
Nashville, TN
#4
I don't know what it is about these big mouth Fed Chairmen. We haven't had a responsible one since Alan Greenspan. (He appeared on ONE talk show and markets crashed, so he later on decided NEVER to give any public interviews.)

Income inequality is something that happens worldwide. Those $10 an hour workers are RICH compared to the DOLLAR A YEAR workers in Somalia who live in the mud. And in America, ANYBODY can move up the ladder. People born in humble circumstances find ways to move up every day.

We really need a RESPONSIBLE Fed Chairman who will do his job and keep his goddam mouth shut.
Why are you comparing us to Somalia instead of to our peer nations in the OECD?

The U.S. Does Poorly On Yet Another Metric of Economic Mobility

U.S. lags behind peer countries in mobility

Global Finance Magazine - Wealth Distribution and Income Inequality by Country 2018
 

Ian Jeffrey

Council Hall
Mar 2013
73,128
41,341
Vulcan, down the street from Darth Vader
#6
Income inequality is something that happens worldwide. Those $10 an hour workers are RICH compared to the DOLLAR A YEAR workers in Somalia who live in the mud.
So basically, anything more than a dollar per year is acceptable to you, because it is still better than Somalia? Hardly a ringing endorsement for your ideology...
 
Jan 2016
48,222
44,197
Colorado
#7
I don't know what it is about these big mouth Fed Chairmen. We haven't had a responsible one since Alan Greenspan. (He appeared on ONE talk show and markets crashed, so he later on decided NEVER to give any public interviews.)

Income inequality is something that happens worldwide. Those $10 an hour workers are RICH compared to the DOLLAR A YEAR workers in Somalia who live in the mud. And in America, ANYBODY can move up the ladder. People born in humble circumstances find ways to move up every day.

We really need a RESPONSIBLE Fed Chairman who will do his job and keep his goddam mouth shut.
Alan Greenspam?!?? LOLOL! He used to be called 'the Maestro'! Believe it or not, once upon a time, folks actually thought he was the greatest central banker who ever lived. Now, his reputation is utterly tarnished, and he is known as a serial bubble blower.

He first created the big stock market bubble of the 1990's, and then, as if that wasn't enough, his policies were a major factor behind the Great American Housing Bubble of the 2000's. When THAT bubble burst, what we got was the Great Recession: the WORST economic downturn since the Great Depression of the 1930's. He was forced to admit in 2009, after the markets had all crashed, that his entire 'philosophy' of allowing the banking industry to 'self-regulate' was WILDLY WRONG.
 

Ian Jeffrey

Council Hall
Mar 2013
73,128
41,341
Vulcan, down the street from Darth Vader
#8
Allowing industry to self-regulate makes little sense (contrast professions), because industry is motivated by only one interest for one set of people, and that set is not the general welfare of the country. Hence the power of Congress "to lay and collect Taxes ... to ... provide for the common Defence and general Welfare of the United States." See U.S. Const. art. I, § 8, cl. 1. The federal government acts for the general welfare (or, at least, is supposed to), because no one else has that responsibility, and no one else cares to do so.
 
Jan 2016
48,222
44,197
Colorado
#9
Allowing industry to self-regulate makes little sense (contrast professions), because industry is motivated by only one interest for one set of people, and that set is not the general welfare of the country. Hence the power of Congress "to lay and collect Taxes ... to ... provide for the common Defence and general Welfare of the United States." See U.S. Const. art. I, § 8, cl. 1. The federal government acts for the general welfare (or, at least, is supposed to), because no one else has that responsibility, and no one else cares to do so.
In general, I agree. But the banking industry, in PARTICULAR, needs close and careful regulation------because if history teaches us anything, it is that the banking industry tends to attract charlatans and crooks, unsavory characters and swindlers and people of very dubious ethics. Because, as Arkansas bank robber Willie Sutton famously explained, "that's where the money is!"
 

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