US Federal Reserve chairman issues warning on social inequality

In his comments, Bernanke identified an obvious social reality and attempted, at the same time, to conceal both the true dimensions and causes of inequality in the US. Nevertheless, his remarks possess a certain political significance. A growing nervousness exists within the ruling elite about the consequences of a quarter century of its own policies, which have created extraordinary levels of social polarization. Sooner or later, such prominent figures recognize, this will have explosive consequences.

The federal reserve chairman’s comments broke no new ground. On the contrary, he repeated all the nostrums that the American elite repeats to itself and those who will listen about the essentially sound state of the US economy and the benefits it bestows on nearly everyone.

Bernanke began by paying tribute to what he claimed was a “bedrock American principle,” that “all individuals should have the opportunity to succeed on the basis of their own effort, skill, and ingenuity. Equality of economic opportunity appeals to our sense of fairness, certainly, but it also strengthens our economy. If each person is free to develop and apply his or her talents to the greatest extent possible, then both the individual and the economy benefit.”

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http://wsws.org/articles/2007/feb2007/bern-f08.shtml