Ten Reasons to Dislike the Federal Reserve

Nothing compares to the depth and substance of Professor George Selgin’s scholarly take-down of the Federal Reserve, but this video by a local libertarian has a very authentic feel.

Julie lists 10 reasons to dislike the Fed.

1.    The Fed has too much power.
2.    The Fed has devalued the currency.
3.    The Fed hurts the poor and middle class.
4.    The Fed is unaccountable.
5.    The Fed destabilizes the economy.
6.    The Fed is too secretive.
7.    The Fed benefits special interests.
8.    The Fed is unconstitutional.
9.    The Fed facilitates bailouts.
10.    The Fed encourages deficit spending.

If I want to nit-pick, I’m not sure that I agree with number 8 since the Constitution gives the federal government the power to coin money. I guess it depends how one interprets that particular power.

Also, I suspect politicians would waste just as much money even if the Fed didn’t exist, so number 10 may be a bit superfluous.

The main argument against the Fed is number 5. Looking at the economic chaos of the 1930s and 1970s, as well as the recent economic crisis, it is no exaggeration to say that the Federal Reserve deserves the lion’s share of the blame.

For those that like monetary policy, here’s my video that looks at the origin of central banking.

And I can’t resist including a link to the famous “Ben Bernank” QE2 video that was a viral smash.