speech she spoke to community organizers, not Wall Street bankers, and spoke about 3 different unemployed Americans by name; But will she change the Fed for the better? In the speech Yellen makes it clear that the Federal Reserve plans on pursuing the same policies they have been pursuing for the past five years, keeping interest rates low, essentially allowing banks to borrow for free. So the
real question is, will continuing this policy help Americas economy?
In an interview with therealnews.com Robert Pollin, a Professor of Economics at the University of Massachusetts in Amherst, states "I love the speech, but we need some action, too. The problem is we've been running this policy for nearly five years, and as Yellen herself acknowledged, we still have a massive problem of unemployment." What is it that is causing this? According to Pollin, commercial banks in the United States are currently holding $2.3 trillion (14 % of the GDP). The problem here of course is that the money is stuck in a single place and is not being distributed through the community.
Trickle down economics refers to the idea that beneficial tax breaks or economic policies for businesses and upper income levels will directly benefit lower income levels as well. As long as the money the top is failing to "trickle down", the issue of a 13% unemployment rate 5 years after the recession has ended will only continue; And as long as one entity is allowed to make all monetary decisions, situations such as these will be allowed to continue.
Watch interview here: http://therealnews.com/t2/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=11683
More on trickle down economics: http://en.wikipedia.org/wiki/Trickle-down_economics