Politics
The Case Against the Federal Reserve: Why Some Believe It Should Be Abolished
Unveiling the Flaws and Proposing a Better Alternative
Does the Federal Reserve protect the American economy, or is it an incorrigibly flawed institution at the root of the very crises it purports to prevent? — Created more than a century ago, the Federal Reserve System is a dual mandate powerhouse in the US economy: its chief responsibilities include the conduct of monetary policy to stabilize prices and to maximize employment. Yet, with so many broken promises on its track record, along with economic instability and inflationary pressure, the critics believe it does more harm than good. This article highlights a number of reasons why the Federal Reserve should be abolished, stating its inefficiencies and proposing some alternatives for a more stable financial future.
Historical Context and Creation of the Federal Reserve
The Federal Reserve was created in 1913 as a result of several financial crises, the worst of which was known as the Panic of 1907. The financial system at that time was prone to bank runs, with no central authority to supply any liquidity in case of an emergency. Congress created the Federal Reserve to stabilize the economy and…
