Morning Must Must Must Read: Janet Yellen: Perspectives on Inequality and Opportunity from the Survey of Consumer Finances

…is compatible with values rooted in our nation’s history, among them the high value Americans have traditionally placed on equality of opportunity…. To the extent that opportunity itself is enhanced by access to economic resources, inequality of outcomes can exacerbate inequality of opportunity, thereby perpetuating a trend of increasing inequality…. Society faces difficult questions of how best to fairly and justly promote equal opportunity. My purpose today is not to provide answers to these contentious questions, but rather to provide a factual basis for further discussion…. I will review trends… then identify and discuss four sources of economic opportunity in America…. The first two are widely recognized as important sources of opportunity: resources available for children and affordable higher education. The second two may come as more of a surprise: business ownership and inheritances…. In focusing on these four building blocks, I do not mean to suggest that they account for all economic opportunity, but I do believe they are all significant sources of opportunity for individuals and their families to improve their economic circumstances…