The Federal Reserve

Calls to “End the Fed” have raged for some time now, with most proponents of this movement being part of grassroots movements such as The Tea Party, and the now infamous Occupy Wall Street crowd. Even some elected officials, from both the Democratic Party and Republican Party have questioned the existence of the Federal Reserve, most notably Ron Paul. Most arguments regarding the demolition of the Federal Reserve System revolve around the constitutional legality, transparency issues, and monetary policy of the Federal Reserve. Most arguments are based on misconceptions, grossly misstated facts, and the literal overlooking of history, as if banking and finance did not exist before 1913. The Federal Reserve System is the central bank of the United States and crucial part of the banking system, as well the government as a whole. Each proposed solution has numerous fallacies, and they also do not take into account the duties and responsibilities of the Federal Reserve and how it is vital to the overall welfare of our nation. Biased information, opinions masqueraded as facts, and warped economic views have all led to the belief that the Federal Reserve System is an uncontrollable, unaccountable printing press, and neither is true.

To see how the Federal Reserve System came about, one must look to the past, namely banking before 1913. The First Bank of the United States was chartered in 1791. It was a privately held institution, with the U.S Government owning about 20% of it, and the rest was owned by foreign investors and foreign governments. The Second Bank of the United States was granted a charter by Congress in 1816, and expired in 1836. In the absence of a central banking system, state banks grew in number and influence, in the a...

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...these so called “entities” own the land, natural resources, and workplaces, ending the Fed won't make a difference in distributing the existing resources more equitably without political reform or radical political change. Playing the blame game instead of acknowledging that slow and ineffective fiscal policy of local, city, state, and national governments have been the cause of a widening inequality gap and an unregulated financial system. Both political parties even play into the political witch hunt from time to time, instead of recognizing the effectiveness of efficient fiscal policy. The Fed should continue to be audited and make strides in making its appearance more transparent. The concept of the Fed serves its purpose in stabilizing our economic system in crisis, regulating the banking system, and ensuring the efficient functioning of the payments system.