Although we work through financial markets, our goal is to help Main Street, not Wall Street.
Janet YellenRead
After adjusting for inflation, the average income of the top 5% of households grew by 38% from 1989 to 2013. By comparison, the average real income of the other 95% of households grew less than 10%.
Interpretation
What this quote means
The wealth gap between the top 5% and the rest of the population has significantly increased over a few decades.
This quote by Janet Yellen highlights the growing disparity in income growth between the top 5% of households and the remaining 95% from 1989 to 2013. It underscores the widening economic inequality in society, as the wealthy have seen their incomes rise substantially, while the majority have experienced negligible growth in their earnings.
Themes
Income InequalityWealth GapEconomic DisparityHousehold IncomeTop 5%Real Income
In practice
Example use cases
During a speech on economic policy, one could use this quote to illustrate the challenges of income inequality.
More from Janet Yellen
All quotes →We need to keep in mind the well-established fact that the full effects of monetary policy are felt only after long lags. This means that policy makers cannot wait until they have achieved their objectives to begin adjusting policy.
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A clear lesson of history is that a 'sine qua non' for sustained economic recovery following a financial crisis is a thoroughgoing repair of the financial system.
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Transparency concerning the Federal Reserve's conduct of monetary policy is desirable because better public understanding enhances the effectiveness of policy. More important, however, is that transparent communications reflect the Federal Reserve's commitment to accountability within our democratic system of government.
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For decades, the pace of technological change in manufacturing has outstripped that in the economy as a whole. And, so, firms - manufacturing firms - have found it easier to continue producing by - with - reducing their workforces.
Janet YellenRead
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.
Janet YellenRead
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