The Boston Globe has the article Opportunities exist to close gap between rich and poor, Yellen says
And one more thing: Do what the rich do, and pass on the wealth.
Yellen said an inheritance is routine for the wealthiest families, but increasing the practice among those in lower echelons of the income scale would provide support to future generations with the potential to shrink the wealth divide.
Does she think that poorer people have some “wealth” that they are not passing on? Maybe they are spending all their wealth eating cake rather than passing it on.
Home equity represents a large share of the wealth for many middle- and lower-income families.
With home prices dropping in the financial crisis, many people are under water in their mortgages. There is no wealth to pass on, only debt. What are we supposed to say to the people who have already lost their homes to foreclosure?
With the current crop of college students taking on mortgage sized debt to finance their education, there will be even less chance of them having any wealth to pass on to their children.
Republicans are talking about cutting Social Security. That should also lessen the wealth that is not being passed on. Problem solved.
I had such high hopes for Janet Yellen. I had no idea that she was at a Marie-Antoinette level of out of touch with reality.