Explain Bernanke's solutions to help address growing income inequality.
Ben Bernanke, the chairman of the Federal Reserve, said that increased education opportunities would help reduce the increased economic inequality that has occurred over the last 30 years. He also said that globalization and the advent of new technologies, the two main causes of income inequality, will lead to economic growth, but inhibiting them will do far more harm than good in the long run.
Instead, the Fed chief said the best method to improve economic opportunities is to focus on raising the level of and access to education. Workers will become more skilful, and firms will undertake more innovation.
It is time to recognize that education should be lifelong and can come in many forms: early childhood education, community colleges, vocational schools, on-the-job training, online courses, adult education. With increased skills, lifetime earning power will increase.