The Federal Reserve, commonly referred to as the "Fed", is the central banking system of the United States. Established in 1913, its stated mission is to provide the country with a safer, more flexible, and stable monetary and financial system. The Fed controls the supply of money, sets interest rates, and serves as a lender of last resort to banks. It operates independently of the government, meaning its decisions do not require approval from the President or Congress, which gives it significant power over the U.S. economy. However, the Fed's policies have led to numerous negative consequences, such as inflation, economic bubbles, and increasing wealth inequality. Critics argue that the Fed's manipulation of the money supply and interest rates distorts the economy and undermines individual financial freedom.
This FRED Graph illustrates the decline in the purchasing power of the U.S. consumer dollar from 1913 to September 2024, showing a drop of over 95% over this period. The line sharply drops early on, with fluctuations during the 1930s and 1940s, and a gradual downward trend through recent years. Shaded regions represent U.S. recessions, and the data is sourced from the U.S. Bureau of Labor Statistics.
For over a century, the Federal Reserve has held the reins of the American monetary system, with devastating effects on purchasing power, savings, and the stability of the economy. This article delves into the urgent reasons why ending the Fed is necessary.
The Federal Reserve, an unelected and largely unaccountable institution, controls the supply of money, influencing interest rates and directly impacting inflation. It operates with significant autonomy and secrecy, shielded from genuine public oversight. The results have been catastrophic: rampant inflation, endless economic bubbles, a system of perpetual debt, and a vast wealth gap. These aren’t unfortunate side effects—they are inherent features of the system.
To achieve real prosperity, Americans must embrace a system of sound money, free from centralized manipulation. The power to control money should return to the hands of the people, not bureaucrats.
When the Federal Reserve prints money to finance the government's debt, it devalues every dollar in your wallet. This is inflation—plain and simple. The Federal Reserve, under the guise of "economic stability," has systematically eroded our purchasing power. Inflation is a deliberate policy enacted by the Fed by manipulating the money supply. By creating money out of thin air and pumping it into the financial system. Since its inception in 1913, the dollar has lost over 95% of its value.
Inflation may sound abstract, but it affects you directly. Every time you go to the grocery store and see prices rising, you’re experiencing the hidden tax imposed by the Federal Reserve and poor economic policy. Unlike a straightforward tax, inflation is insidious; it slowly eats away at your wealth, often without you realizing it. This is not by accident. Inflation benefits the political class and large financial institutions at the expense of everyday Americans.
Ending the Fed means ending this hidden tax and restoring a currency that holds its value over time.
Through interest rate manipulation, the Federal Reserve has distorted the economy. By setting artificially low interest rates, the Fed encourages reckless borrowing and speculative investments. This has led to a series of economic bubbles, from the dot-com bubble in the late 1990s to the housing crisis of 2008. When these bubbles burst, it's ordinary Americans who suffer the most—losing jobs, homes, and their savings. Meanwhile, big banks and corporations, often bailed out by the Fed, continue to thrive.
An economy that relies on artificial stimulation cannot sustain real, lasting growth. True prosperity comes from savings, investment, and responsible financial practices, not from the whims of central bankers.
Beyond the economic arguments, there’s a profound moral reason to end the Fed. In a free society, individuals should have the right to own and control their money. The Fed’s monopoly on money creation strips Americans of this fundamental freedom. By continuously expanding the money supply, the Fed transfers wealth from ordinary citizens to the government and to large financial institutions.
This system of central control is fundamentally incompatible with a free society. By ending the Fed, we not only restore economic integrity but uphold the principles of liberty and individual responsibility.
When the Federal Reserve was created in 1913, Americans were promised stability and prosperity. But what has happened since? Since the Fed took control, the purchasing power of the U.S. dollar has declined by more than 95%. Government debt has skyrocketed, incentivized by a central bank ready to print money on demand. The business cycle has become more volatile, with repeated booms and busts that devastate the economy. Most disturbingly, the Fed’s unchecked power undermines the democratic process that Americans hold dear. Citizens can vote for their representatives, but they have no say in the unelected bureaucrats who decide how much their money is worth.
The Founding Fathers understood the dangers of centralized power over money. The Constitution gives Congress—not a private banking cartel—the power to coin money and regulate its value. Thomas Jefferson warned of the perils of allowing banks and institutions to control the currency, and those warnings have come true. Americans must heed this wisdom and put the power back where it belongs—in the hands of the people. Returning to a sound monetary system, possibly backed by gold or other tangible assets, would prevent the government and the Fed from creating money out of thin air.
Sound money is not just an economic principle—it’s a safeguard of freedom. With a currency that holds its value, people can save for the future, plan for retirement, and support their families without the fear of inflation eating away at their wealth.
Educate the Public – The more people understand the consequences of the Federal Reserve’s actions, the stronger our movement becomes.
Push for Transparency – The Fed has operated in secrecy for far too long. Auditing the Fed would be a significant step towards accountability.
Ending the Fed isn’t just about economics—it’s about reclaiming our liberty, protecting our savings, and building a future where our children aren’t shackled by the debts and mistakes of the past. It’s about empowering individuals to make choices for themselves, free from the overreach of an unaccountable central bank. Together, we can break free from this destructive system and build a foundation of lasting prosperity.