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By SCOTT FRIEDMAN

Are We Better Off Having the Federal Reserve

Posted 10:26 a.m., March 17, 2008

Are We Better Off Having the Federal Reserve

Congress created the Federal Reserve and could also eliminate it.

The purpose of the Fed, its stated reason for being, is to promote employment and limit inflation. Expecting it to do that is very similar to legislating morality. Criminals still break the law, greedy people still make bad short sighted decisions, and corrupt government officials are still corrupt. The Fed hasn’t been able to stop these things and they are what are responsible for our current economic problems.

So, if the Fed does not have the capacity to achieve its objectives, why have it? It provides a false illusion the government, which the Fed is not, will steer us clear of the damaging effects of greed and short sightedness.

Would we be better off telling the truth? The economy is based on trust and every time people act in a trust worthy manner, the economy gets a little stronger and every time they don’t it gets a little weaker.

Our government appears to be afraid to tell the truth which is why it is so distrusted by so many. Yet, the truth keeps coming to light more and more completely.

What the Federal Reserve does do, in my opinion, is delay the negative impacts of poor judgment thereby making things worse. The solution lies in helping people see the negative consequences of greed and short sighted unsustainable behavior, and the benefits of behavior in which everyone sustainably thrives.

Scott Friedman

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