Bernanke Discusses Income inequality, Pushes For Jobs Bill

Ben Bernanke says:

I certainly understand that many people are dissatisfied with the state of the economy. I'm dissatisfied with the state of the economy. Unemployment is far too high. Inequality, which is not a new phenomenon, it's been going on - increases in inequality have been going on for at least 30 years. But, obviously, that - as that has continued we now have a more unequal society than we've had in the past.

So, again, I fully sympathize with the notion that the economy is not performing the way we would like it to be, and in that respect the concerns that people express across the spectrum are -- are understandable.

I think the best way to address inequality is to create jobs. It gives people opportunities. It gives people a chance to earn income, gain experience and to ultimately earn more. But that's an indirect approach that's really the only way the Fed can address inequality per se.

I think it would be helpful if we could get assistance from some other parts of the government to work with us to help create more jobs.

Bernanke is pushing for the for the government to pass some sort of jobs bill, like President Obama's American Jobs Act.

The American Jobs Act is a half-trillion dollar bill. Some of it's elements include:

• Cutting and suspending $245 billion worth of payroll taxes for qualifying employers and 160 million medium to low income employees.
• Spending $62 billion for a Pathways Back to Work Program for expanding opportunities for low-income youth and adults.
• Spending $50 billion on both new & pre-existing infrastructure projects.
• Spending $49 billion on extending unemployment benefits for up to 6 million long-term beneficiaries.
• Spending $35 billion in additional funding to protect the jobs of teachers, police officers, and firefighters
• Spending $30 billion to modernizing at least 35,000 public schools and community colleges.
• Spending $15 billion on a program that would hire construction workers to help rehabilitate and refurbishing hundreds of thousands of foreclosed homes and businesses.
• Creating the National Infrastructure Bank (capitalized with $10 billion), originally proposed in 2007, to help fund infrastructure via private and public capital.
• Creating a nationwide, interoperable wireless network for public safety, while expanding accessibility to high-speed wireless services.
• Creating additional regulations on businesses who discriminate against hiring those who are long-term unemployed.