Janet Yellen has proven to be just another member of the financial ruling elite [View all]

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Janet Yellen Should Stop Telling the Economically Exploited to Save Money They Don't Have

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According to the Associated Press (AP), Yellen believes the best approach to address the economic challenges faced by income inequality is to encourage people who are struggling to survive to save more money:

The Great Recession showed that a large number of American families are "extraordinarily vulnerable" to financial setbacks because they have few assets to fall back on, Federal Reserve Chair Janet Yellen said Thursday

Yellen said a Fed survey found that an unexpected expense of just $400 would force the majority of American families to borrow money, sell something or simply not pay.

"The financial crisis and the Great Recession demonstrated, in a dramatic and unmistakable manner, how extraordinarily vulnerable are the large share of American families with few assets to fall back on," Yellen said in a Washington speech.

She said the bottom fifth of households by income - about 25 million households - had median net worth in 2013 of just $6,400, and many of these families had nothing saved or negative net worth, meaning their debts were greater than their assets.

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