Ben Bernanke’s Ignorant and Racist Remarks
- Federal Reserve Chairman Ben S. Bernanke listens to businessmen following an address in Chatham, Mass., Friday, Oct. 23, 2009. (AP Photo/Charles Krupa)
Last spring when Federal Reserve chair Ben Bernanke visited Morehouse College, an undergraduate student asked him what accounts for the enormous racial disparity in wealth. Bernanke responded that the source of the problem was the lack of "financial literacy" and "financial education" on the part of blacks, particularly with respect to savings decisions.
He said nothing about the lack of access to inherited wealth, such as inheritances and other intergenerational transfers. Most wealth acquisition today takes place by such asset shifts. Even more astonishing, Bernanke never mentioned the notorious history of white violence that included the seizure, destruction and appropriation of black property.
Acknowledging this unfairness is not an excuse but a powerful truth; remedying it requires straightforward government action, rather than lectures on the value of saving. In fact, the racial wealth gap can be decreased – and without using a race-specific strategy of wealth redistribution.
We propose Children’s Development Accounts, an expanded and non-incremental version of what Manning Marable of Columbia University has called the "Baby Bond" plan. It would provide an endowed trust fund for all children born into families with a net worth below the national median, progressively rising to $50,000 to $60,000 for children whose families are in the lowest wealth quartile. The program could be structured like the Earned Income Tax Credit, which uses a benefits phase-out schedule.
November 1, 2009 - Posted by Staff | african american money, african american wealth, black enterprise, black money | african american wealth, ben bernanke, black wealth
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[…] and highly inappropriate statements at Morehouse College serve as a significant case in point. In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and […]
Pingback by Ben Bernanke Needs a Lesson in Racial History - Syracuse Finance | November 1, 2009 |
[…] and highly inappropriate statements at Morehouse College serve as a significant case in point. In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and […]
Pingback by Dr Boyce: Ben Bernanke Needs a Lesson in Racial History « Black College Students | November 1, 2009 |
[…] and highly inappropriate statements at Morehouse College serve as a significant case in point. In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and […]
Pingback by Dr Boyce: Ben Bernanke Needs a Lesson in Racial History « African American Money | November 1, 2009 |
[…] and highly inappropriate statements at Morehouse College serve as a significant case in point. In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and […]
Pingback by Dr Boyce: Ben Bernanke Needs a Lesson in Racial History « Black Money and Black Wealth, made simple | November 1, 2009 |
[…] and highly inappropriate statements at Morehouse College serve as a significant case in point. In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and […]
Pingback by Dr Boyce Watkins: Ben Bernanke Needs a Lesson in Racial History « Black Leadership and Everything in It | November 1, 2009 |
[…] and highly inappropriate statements at Morehouse College serve as a significant case in point. In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and […]
Pingback by Dr Boyce Watkins: Obama’s Fed Chairman Makes Racially Embarrassing Remarks « Black Politics, Black Voters, Black People | November 1, 2009 |
[…] In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between Blacks and whites. In response, Bernanke said that the gap was due to a lack of “financial literacy” and “financial education” on the part of African Americans. That’s all he mentioned. […]
Pingback by Obama’s Fed Chairman Makes Racially Ignorant Remarks: Dr Boyce Analyzes | Black Man Black Woman | November 1, 2009 |
[…] GA_googleAddAttr("Tag", "black-wealth"); GA_googleFillSlot("wpcom_sharethrough"); Like this:LikeBe the first to like this […]
Pingback by Ben Bernanke’s Ignorant and Racist Remarks « Black Money and Black Wealth, made simple | January 27, 2012 |