[Ed. Note: Do you wonder how many Sheeple read something like this and imagine that the Federal Reserve is a good idea? This was written by Arthur J. Rolnick, formerly senior vice president for research at the Minneapolis Federal Reserve Bank…no vested interests there.]
by Arthur J. Rolnick, Star Tribune:
Some people would rather just end it — and go back to a gold standard — but history shows that the Federal Reserve System was carefully conceived and has been effective in executing its mission.
In recent years, Ron Paul, presidential candidate and Texas congressman, has campaigned to abolish the Federal Reserve System. He has won over to that cause an enthusiastic cadre of followers. He argues that the Fed is unconstitutional and undemocratic, and that it undermines our economy. He argues that a return to a gold standard would give the United States a currency whose value was not distorted by the whims of a central bank and would lead to less inflation, less financial instability and more real growth.
A harsh indictment of the Fed, indeed. But a look back at how the U.S. economy fared under a gold standard compared with how it has fared under the Fed raises doubts about Paul’s analysis. History suggests that the Fed has generally been successful in carrying out its congressional mandate, and that the U.S. economy has performed better under the Fed than under a gold standard. This is not to say that the Fed always gets it right or is as transparent as it could be. But the case for abolishing the Fed is weak at best.