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Fed Chair Unsure If Capitalism or Oligarchy Describes the U.S.
CNS News/Drudge ^ | 8 May 2014 | Susan Jones

Posted on 05/09/2014 10:44:57 AM PDT by shove_it

(CNSNews.com) - "Are we still a capitalist democracy or have we gone over into an oligarchic form of society in which incredible economic and political power now rests with the billionaire class?" Sen. Bernie Sanders, a Vermont socialist, asked that question of Federal Reserve Chair Janet Yellen at a hearing on Capitol Hill Wednesday.

Yellen said she'd "prefer not to give labels," but she admitted to being very concerned about income inequality.

"So, all of the statistics on inequality that you've cited are ones that greatly concern me, and I think for the same reason that you're concerned about them. They can shape the -- determine the ability of different groups to participate equally in the democracy and have grave effects on social stability over time.

"And so I don't know what to call our system or how to -- I prefer not to give labels; but there's no question that we've had a trend toward growing inequality and I personally find it very worrisome trend that deserves the attention of policy-makers.

Sanders told Yellen, "There comes a point, where the billionaire class has so much political power -- where the Koch brothers are now, because of Citizens United, able to buy and sell politicians -- they have so much political power -- at what point is that reversible?" he asked.

E-Brief About Us Subscribe Contact Us Donate RSS Home » News Fed Chair Unsure If Capitalism or Oligarchy Describes the U.S. May 8, 2014 - 7:07 AM By Susan Jones Subscribe to Susan Jones RSS Follow Susan Jones on Twitter Share on Facebook Share on TwitterMore Sharing Services 505 Share on printShare on email Yellen Federal Reserve Chair Janet Yellen takes her seat before she testifies about the economy at the Joint Economic Committee of Congress on Capitol Hill in Washington, Wednesday, May 7, 2014.(AP Photo/Charles Dharapak)

(CNSNews.com) - "Are we still a capitalist democracy or have we gone over into an oligarchic form of society in which incredible economic and political power now rests with the billionaire class?" Sen. Bernie Sanders, a Vermont socialist, asked that question of Federal Reserve Chair Janet Yellen at a hearing on Capitol Hill Wednesday.

Yellen said she'd "prefer not to give labels," but she admitted to being very concerned about income inequality.

"So, all of the statistics on inequality that you've cited are ones that greatly concern me, and I think for the same reason that you're concerned about them. They can shape the -- determine the ability of different groups to participate equally in the democracy and have grave effects on social stability over time.

"And so I don't know what to call our system or how to -- I prefer not to give labels; but there's no question that we've had a trend toward growing inequality and I personally find it very worrisome trend that deserves the attention of policy-makers.

Sanders told Yellen, "There comes a point, where the billionaire class has so much political power -- where the Koch brothers are now, because of Citizens United, able to buy and sell politicians -- they have so much political power -- at what point is that reversible?" he asked.

Sanders also asked Yellen about repealing the estate tax: "Would it make sense to you to give enormous tax breaks to the families of the top one percent of people in this country?"

Yellen repeated that she shares Sanders' concern with inequality -- but "it's up to the Congress to decide what's appropriate."

Sanders tried again, asking Yellen if giving tax breaks to the Koch brothers, who are worth $80 billion -- "do you think that's going to create a whole lot of jobs in this country?"

"Well, I'd say most of the evidence that we have suggests that transfers to lower income people ted to be spend -- a larger fraction of the dollar is spent than when there's a transfer to a wealthy individual...so that's from the demand side," Yellen said. "Tax policy also has supply side effects that one should take into account."


TOPICS: Business/Economy; Constitution/Conservatism; Government; Politics/Elections
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Bernie, we never used to be a "Capitalist Democracy" but we are now that or worse.

Video at the linked article.

1 posted on 05/09/2014 10:44:57 AM PDT by shove_it
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To: shove_it

Wealth inequality or income equality or intellectual inequality?


2 posted on 05/09/2014 10:46:18 AM PDT by Paladin2
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To: shove_it

I agree with her. I’m not sure what we are anymore. At best, we are a crony capitalist country with a huge Socialist Welfare State grafted onto it which eventually will overwhelm the private sector.


3 posted on 05/09/2014 10:46:38 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: shove_it

Yellen said she’d “prefer not to give labels,” but she admitted to being “very concerned about income inequality.”

Income is a means to acquire wealth...wealth is capital. I cannot believe, actually I can given how these people get appointed, the Fed Chairman thinks like this.


4 posted on 05/09/2014 10:47:29 AM PDT by Mouton (The insurrection laws perpetuate what we have for a government now.)
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To: shove_it
The "billionaire class" can rightfully be called the big-government/big-corporate crony-fascist complex.

Crony-fascists pay government big-wigs to grant them monopolies.

5 posted on 05/09/2014 10:47:44 AM PDT by E. Pluribus Unum ("The more numerous the laws, the more corrupt the government." --Tacitus)
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To: shove_it
Sanders told Yellen, "There comes a point, where the billionaire class has so much political power -- where the Koch brothers are now, because of Citizens United, able to buy and sell politicians -- they have so much political power -- at what point is that reversible?" he asked.

Yeah, let's take the money away from the billionaires and give it to the government. I would feel much safer that way /sarcasm.

Part of the problem is that we are moving more towards fascism - a fusion of government and corporate interests - and oligarchs are a symptom of that, not a cause.

6 posted on 05/09/2014 10:49:05 AM PDT by dirtboy
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To: shove_it

Oligarchy with the controllers of the political parties at the top.


7 posted on 05/09/2014 10:49:28 AM PDT by Ingtar (The NSA - "We're the only part of government who actually listens to the people.")
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To: shove_it
"Are we still a capitalist democracy or have we gone over into an oligarchic form of society in which incredible economic and political power now rests with the billionaire media/political class?"

There is the real question.

8 posted on 05/09/2014 10:49:33 AM PDT by SampleMan (Feral Humans are the refuse of socialism.)
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To: shove_it

>>Yellen said she’d “prefer not to give labels,” but she admitted to being very concerned about income inequality.<<

Me too.

I want to quit working so damn hard and have 1/2 of Bill Gates’ income.

Fair is fair, right?


9 posted on 05/09/2014 10:50:45 AM PDT by freedumb2003 (Fight Tapinophobia in all its forms! Do not submit to arduus privilege.)
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To: E. Pluribus Unum

I don’t know about you, but I don’t see a lot of poor people handing out jobs and paychecks.


10 posted on 05/09/2014 10:53:06 AM PDT by TexasGunLover ("Either you're with us or you're with the terrorists."-- President George W. Bush)
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To: shove_it
Fascist oligarchy would best describe it. The haves, through government enforced edicts, bought and paid for by lobbyists, will ensure a level playing, field.....

That they own and operate, and they will use the government like a giant flyswatter or pitbull to destroy any competition who get’s in their way.

Don't believe me? See Reid (BLM) vs. Bundy as one of countless examples.

11 posted on 05/09/2014 10:57:29 AM PDT by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: shove_it

Tastes bad. More filling.


12 posted on 05/09/2014 11:07:52 AM PDT by MUDDOG
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To: TexasGunLover
I don’t know about you, but I don’t see a lot of poor people handing out jobs and paychecks.

Small businesses, up until Ubama started driving them out of business, used to provide 50% of the jobs in this country. That is diminishing rapidly.

The textbook definition of fascism is when big government and big business are so incestuous that it's hard to tell where one ends and the other begins.

The minimum wage debate is a case in point. The big companies are more than willing to raise the minimum wage, because they don't employ minimum-wage workers. Small businesses employ minimum-wage workers. Raising the minimum wage is no skin off your nose, and it drives your competition out of business.

Don't tell me you believe in the minimum wage? Please tell me you're not that stupid.

13 posted on 05/09/2014 11:15:11 AM PDT by E. Pluribus Unum ("The more numerous the laws, the more corrupt the government." --Tacitus)
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To: Opinionated Blowhard

Fascism, Socialism and Marxism are all roots of the same tyrannical despotic tree. Each on their own have resulted in the deaths of countless millions in the attempt to consolidate the power of the elite. History...history...history.


14 posted on 05/09/2014 11:21:20 AM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: shove_it
We're not a capitalist country, assuming we ever truly were.

The amount of subsidies, credits, tax breaks, grants, favors & bailouts Big Business cronies get make it impossible to believe this is a free market, capitalist country.

15 posted on 05/09/2014 11:32:58 AM PDT by gdani (Every day, your Govt surveils you more than the day before)
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To: shove_it

Why not the obvious — a Plutocracy


16 posted on 05/09/2014 11:41:08 AM PDT by Usagi_yo
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To: shove_it

And Yellen replied: Pump up the market, ump up the market1

But what about savings rates Ms. Yellen?

And Yellen replied: Pump up the market, pump up the market.

Next.


17 posted on 05/09/2014 11:44:48 AM PDT by jwalsh07
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To: shove_it

Bernie, it is people like you that have created whatever mess we are in and you can define that mess in whatever term suits your feeble mind. Asking that question shows your ignorance.


18 posted on 05/09/2014 11:47:11 AM PDT by mulligan (I)
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To: shove_it

“There comes a point, where the billionaire class has so much political power — where the Koch brothers are now,

or better yet

“There comes a point, where the billionaire class has so much political power — where George Soros and Bill Gates are now,


19 posted on 05/09/2014 11:48:04 AM PDT by Holdem Or Foldem (Life isn't fair, so wear a cup.)
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To: mulligan

We the people now live in a fascist oligarchy.


20 posted on 05/09/2014 11:48:53 AM PDT by MHGinTN
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