The Grand Bargainer

Federal Reserve Chairman Ben Bernanke addressed the issue of growing income inequality in a speech to the Greater Omaha Chamber of Commerce on February 6. The increase of inequality can be attributed to the technological advances that are raising the demand for more skilled workers and, consequently, decreasing the demand for the unskilled laborers. It is no surprise then, that education is the answer to the income inequality dilemma.
Bernanke also makes a point to say that the U.S. economy is the most productive and has the largest rewards for skilled workers, but economic insecurity is a result of this. In conclusion, Bernanke suggests to limit the risks to individuals by restricting trade or using taxes to redistribute the incomes.