POLITICS

Fed Chair Not Sure Whether To Call U.S. An Oligarchy Or Democracy

05/09/2014 12:54 pm 12:54:35

Federal Reserve chair Janet Yellen said Wednesday that she doesn't know whether the U.S. political system is a democracy or an oligarchy, as a recent study concluded, but that growing inequality is an issue lawmakers should address.

During a hearing on Capitol Hill, Sen. Bernie Sanders (I-Vt.) asked Yellen about a Princeton study that found that wealthy, well-connected individuals have far more influence over national policy than the average voter.

“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 ability of different groups to participate equally in a democracy and have great effects on social stability over time,” Yellen responded.

“I don't know what to call our system," she added. "I prefer not to give labels, but there’s no question we’ve had the trend toward growing inequality, and I personally find it a very worrisome trend that deserves the attention of policy makers."

Watch the video above.

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