End the Fed
(Written for a USF Macroeconomics assignment. I did not receive a good grade. Fall 2020)
Dear Chairman of the Federal Reserve,
We are in the midst of unprecedented times. Our economy has taken a heavy hit throughout this pandemic and is struggling to get back onto its feet. What we need at this juncture is the freedom to make decisions as business owners without fear of being silenced, or shut down, by our own government. We are not in need of any government induced fiscal or monetary policies now, or ever, because the free market is more than capable of working itself out of the mayhem that government has caused. In theory, some economists may believe the best way for an economy to climb out of a recession is by allowing the Fed to create monetary policies. They may believe that by increasing the money supply through inflation, interest rates will decrease and investment in consumption will rise which will result in the closure of the recessionary gap. Now, why this seems like a logical idea to any rational human being is beyond me. Inflating the money supply will lead to a false sense of wealth amongst people and businesses. The overabundance in spending that is the result of this illusion of wealth will create a bubble that when popped, will lead to bankruptcies, foreclosures, unemployment, and general despair. There are those who will make it out of this situation unscathed, however... the banks and anyone who is favorably connected to the Federal Reserve. The banks will be bailed out, of course, as the Fed conveniently controls the money supply. Absolute power corrupts absolutely. So I will iterate once again, have complete confidence that the free market will take care of any issues by itself, there is no need for government intervention or policy making of any kind. I respectfully ask that you step down from your position as Chairman, and help to disassemble the Federal Reserve. Perhaps then we can gain back a fraction of our once beloved financial and monetary system that the founding fathers fought so hard to create. And though it might seem miraculous that the free market can recover from the past 106 years of poverty, depression, and utter destruction that the Federal Reserve has caused ever since that fateful day on Jekyll Island in 1913, I still believe it can be done. Just give the market a chance.