Bernanke on Inequality, and Trade

By February 7, 2007General

Fed Chair Ben Bernanke traveled to America’s heartland — Omaha, Nebraska — yesterday to make a speech on income inequality. It’s a serious discourse, full of statistics and weighty prose. But most importantly, he cautioned against the growing protectionist tide, saying:

“[H]indering the adoption of new technologies or inhibiting trade flows would do far more harm than good, as technology and trade are critical sources of overall economic growth and of increases in the standard of living.”

He urged a greater focus on education and training — with which we heartily agree — to ease the impact on workers while bolstering their earning power.

In any event, here’s a link to the full speech.

Join the discussion One Comment

  • Ken Run says:

    Ben Barnanka’s great insight: Education as the great equalizer. Ironically, we immigrants from Europe and Asia have figured it out almost the day we arrived. The result is if you go to a meeting at Exxon, half the people at the meeting are former immigrants, and 99% of the people with a PHD at the meeting are immigrants. Somehow, this message has not sunk in with native born Americans. Where I live (in Texas) 67% of minor students (blacks and hispanics) drop out of highschool, and of the higher percentage of whites that graduate many are functionally illiterate(although many are computer literate which they confuse with being educated). In the meantime, Texans complain about high school taxes (they don’t pay a state income tax) so that many of them would support lower school taxes. In the meantime, our Texas president loads 396 tons of cash on Airforce Cargo planes to Iraq to hand over to the local government, this money is not available to be redistributed to the states to help the needy. Although Gov. Perry has a $12 billion ($12,000,000,000)due to the high income oil and gas industry, he cuts the CHIP program, medical insurance for needy children.
    Do our elected officials actually think they are solving problems? Let me paint you the future. Today the US has 2,000,000 people locked up, still violent crime is rising daily (although society is in denial). With a mass of uneducated people, not being able to find life sustaining legal income, we are on the way to a social disaster. We accummulate $850 billion in trade deficits, annually; our president has been running mega deficits, nobody except the Chinese like our dollar, social security and medicare are going broke, fast, and very few Americans save for their own retirement. Some people compare living in the US as living in a jungle. We shoould be so lucky.