This website uses cookies to ensure you have the best experience. Learn more

Lat1 Research Essay

3182 words - 13 pages

What happened on December 23, 1913 at Jekyll Island that has completely changed the landscape of the monetary system in United States? Since its inception in 1913, the Federal Reserve has been the Central Bank of the United States of America. There are many questions about the Federal Reserve:; Its legality, its morality and the intentions of the founders and of those who currently are in authority. Was the Federal Reserve necessary when it was started? Is it necessary now? There is a growing group of people who believe that the role the Fed has taken violates everything our country was founded upon- being a part of the government that is by the people and for the people and that it has not ...view middle of the document...

P. Morgan met with Congressional leaders to create the Federal Reserve Charter. It was supposed to help the United States economy and monetary system in many different ways. The Federal Reserve was founded
to organize, standardize and stabilize the monetary system in the United States. It had to set up a method that could create “liquidity in money supply – in other words, make sure banks could honor withdrawals for customers. It also needed to come up with a way to create an ‘elastic currency’ meaning it had to control inflation by making sure prices didn’t climb too quickly and it needed a way of increasing or decreasing the country’s supply of currency in order to prevent inflation and recession” (Obringer, 2).
In other words, the Fed was started, in part, to keep the economy in a controlled pendulum, not swinging too far up or down and to keep inflation in check by manipulating interest rates and the money supply. Knowing the public might not accept such a drastic change that was clearly a move to be more like European nations, the founders of the Fed tried to be a little different. A major reason the Fed was accepted by the people as presented to them, was that it was set up in a way that was different than the European Central banks by having multiple “decentralized” member banks, rather than just one like the central banks in Europe. The member banks are each governed by local bankers in the community the member bank operates in. While it is still one central bank, givingen the appearance of a democratic institution by placing the member banks in different cities around the US. These banks are all charged with voicing their opinions on what Fed policy should be and how best to accomplish the goal of maintaining a balanced economy and eliminating erratic business cycles.
Has it accomplished that goal? History shows that the two worst economic times in this countries history have come during the time the Fed was in operation. “After the Fed was founded during the 1920’s, the Establishment economists and bankers proclaimed that the American economy was now in a marvelous New Era, an era in which the Fed, employing its modern scientific tools, would stabilize the monetary system and eliminate any future business cycles. The result: …ever since the Fed was visited upon us in 1914 , our inflations have been more intense and our depressions far deeper than ever before”. (Rothbard, 80).
The latest financial disaster was, arguably, a direct result of Fed actions. The financial crash of 2007 happened mainly because of the low rate policy that Alan Greenspan, then Federal Reserve Chairman, used to try and pull the economy out of a recession that started in 2001. The low rates caused a mass amount of new loans to be issued and gave lenders a renewed taste for how much money could be made with the sheer volume of home loans being made. With home prices being artificially inflated by low interest rates and a lowered fractional reserve for...

Other assignments on Lat1 Research

Hospitals Paper

6014 words - 25 pages strictly associated with a hospital that participates extensively in research and development. Hospital reimbursement is a fascinating topic and one that frankly many people don’t want to talk about because it makes them so angry. It can be frustrating working with insurance companies that say they won’t pay because of silly rule that you never knew about and the amount that the hospital is charging is simply insane. Insurance started out with a

Course Syllabus Essay

2610 words - 11 pages | | |rights of others and which will not impair the educational mission of the College. Misconduct for which | | |students are subject to College Discipline (e.g. expulsion) may include the following: (1) all forms of | | |dishonesty such as stealing, forgery, (2) obstruction or disruption of teaching, research, administration


1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages campaigned for a change in the law for many years, and assisted in the suicide of at least 45 people.” (Brooks) There are benefits to the medical and research community if one chooses the end their life through assisted suicide. The body of the individual is intact therefore the body could be donated to science for research. Research can aid in the ailment that caused the individual to want to take their life and thus preventing the ailment and

Tanglewood Case 1

797 words - 4 pages Tanglewood’s staffing strategy requires the organization to make key decisions about the acquisition, deployment, and retention of the organization’s workforce. In order to accomplish this, Tanglewood’s must make thirteen decisions regarding its staffing levels and its staffing quality. One of the first decisions that Tanglewood needs to choose is to acquire or develop talent. Tanglewood should try to develop their current talent because one


1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages about it and what treatments are important to improving his or her health status (Alexander, Lemak, & Pollack, 2007). References Alexander, J., Lemak, C., Pollack, H., Case Management and Client Access to Health and Social Services, Journal of Behavioral Health Services and Research, July 2007 Vol. 34 Issue 3 pp.221-236 Apgar, D., Providing Mental Health Services at What Price? Ethical Issues


439 words - 2 pages The life expectancy is lower; so people are not kept alive with drugs for decades in a virtual sleep state. There is less state education; so kids don't have it drilled into them that their only goal in life is to make money, at the cost of 'everything' else. The health care is less; so diseases, usually brought by Westerners, kill many more than they do in countries where drug companies can make a fortune from selling medicines that aren't

Chapter 6 International Business

7113 words - 29 pages punitive tariffs. Teaching Tip: The WTO maintains a site for students. Go to {} and click on the students icon to search the site, research countries, and even see a list of internships that are available at the WTO. Economic Arguments for Intervention I) Economic arguments for intervention include the infant industry argument and strategic trade policy. The Infant Industry Argument J) The infant industry argument suggests

Scope And Goals

279 words - 2 pages new way to redeem products by accumulating loyalty points. Statement of Scope and Goals: The functions for the project development of the Frequent Shopper Program include tracking the customer’s purchase behavior, in which the customer’s interest and product purchases are analyzed. This type of marketing research will provide all the stores an analysis with the insights of what the customers like to buy, their favorite brands, and

Similar Documents

Lat1 Final Paper

3215 words - 13 pages with constructive criticism and work to “minimize negative experiences” (Seefeldt & Ewing, 1996, p.3). Research has shown that children who participate in frequent physical activity, such as sports, experience improved academics, have better mental health, and are less likely to take part in risky health behaviors than their less active counterparts. Dr. Daniels, author of “Interscholastic Sports and the Middle School Student”, finds six main

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress New Thinking, Research in Progress FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically