The United States Should Abolish The Federal Reserve
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|Updated:||2 months ago||Status:||Debating Period|
|Viewed:||229 times||Debate No:||94129|
Debate Rounds (4)
Hello welcome fellow Debate.org fans, if you noticed I've created a very contraversial topic to debate about. As it is a topic I so love to argue. If wanting to debate this topic, please comment below, as you should not be able to accept this debate.
Of coarse here are the round rules:
Round 1 - Acceptance
Round 2 - Arguments
Round 3 - Rebuttal
Round 4 - Counter-Rebuttal(No New Arguments)
Federal Reserve: The Federal Reserve System, often referred to as the Federal Reserve or simply "the Fed," is the central bank of the United States. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system
Abolish: To formally put an end to
Both from Dictionary.com
I thank my opponent for letting me be Con in this debate. In order to abide by the rules, I shall use this round only for acceptance. I agree with the definitions provided and I look forward to a strong debate so I wish my opponent good luck.
Again I would like to thank, Amedexyius, for accepting this debate, and of coarse say good luck to them in their round of Debating. :D
1. The Federal Reserve is Not Government Owned.
Most people in the United States(including myself when I was an ignorant socialist), believed the Federal Reserve was "Government" Owned. When in reality, it is as government owned as the Bank of America. Which by the way, is also, not government owned...
2.The US had its Strongest Period of Economic Growth not when there was a Federal Reserve.
As stated by Journalist Michael Snyder and his research, "The Gilded Age saw the greatest period of economic growth in American history. After the short-lived panic of 1873, the economy recovered with the advent of hard money policies and industrialization. From 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita, despite the panic of 1873. The economy repeated this period of growth in the 1880s, in which the wealth of the nation grew at an annual rate of 3.8%, while the GDP was also doubled."
During this time, the US Per Capita income was one of the highest in the world. Here are the major nations in order by Per Capita Income, United States was $377, Great Britain was $244, Germany was $184, and France was $153. That being in order in today's currency, US: $9,002.96, GB: $5,826.85, Ger: $4,394.02, Fra: $3,653.72. While yes, Britain remained the Economic Capital of the World, many foreigners asked the same question, "What was the United States Success?"
Well I'll tell you, it wasn't a privately owned and operated Central Bank. It was the power of the free market, this was proven by famous Industrialist Carnegie and Rockefeller. The two grew some of the strongest economic empires not because of the Federal Reserve, but because the Free Market allowed them to.
3. The Federal Reserve is Destroying the US Dollar
Before 1913, the US's problem was not major, and when there was inflation is was usually caused by a major war, such as the American Civil War. Once the Federal Reserve was installed, the increasing of inflation has happened. Michael Snyder said the Federal Reserve installs inflation as a kind of "tax," in order to help in the stopping of inflation, and so far it has worked. As inflation as well besides affecting our income, affects pricings at stores. Since 1970 prices of basic goods have nearly tripled to quadripled in price.
Here is a list of goods increasing in price from 2002 to 2012:
- Beer: 25% Increase; 2002 - $.99; 2012 - $1.24
- Coffee/Ground Roast: 90% Increase; 2002 - $2.92; 2012 - $5.58
- Margarine: 143% Increase; 2002 - $.86; 2012 - $2.09
Also here is a Chart of the Inflation Rate since the early 1800s:
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I would willing give another argument, but of coarse time is not my greatest friend at the moment. So sorry if you don't find this enough at the moment.
I thank my opponent for providing his argument. I'll start my opening arguments in order to play by the rules, and leave my rebuttals to the next round.
The Federal Reserve Helps Stabilize the American Economy
The primary purpose of the Federal Reserve has to do with stabilizing the American economy and ensure that it stays within a path that will ensure security against an economic collapse . In more detail, the job of the Federal Reserve helps manage the monetary policy of the United States, manage international fiscal transactions and policies within the United States and abroad, etc. Virtually everything that is necessary in order to establish a functioning economy and preserve it that way. Without the federal reserve, the United States becomes one giant leap closer to the economic and dysfunctional system of laissez-faire, a system designed to fail upon itself . In laissez-faire, without influence by a central system, the economy is set loose upon itself. It basically means that any enterprise has the potential to take any economic action necessary to monopolize an industry to secure power. In a translation, this monopoly defeats the purpose of laissez-faire which is to stimulate economic competition upon each other when in the end, there would be no competition as mass coercion by corporations and conglomerates would create enough power to destroy the minor competitions (Refer to Source 2). In this chain reaction, it would allow the coercion of monopolies to destroy the balance of supply and demand because they would control the supply and demand (Cost), considering there would be no other competition . My point is that a Federal Reserve is one of the greatest obstacles to prevention of an absolute free market/laissez faire, which is doomed to fail upon itself.
Many people believe that simply because the Federal Reserve is not owned by the American government, it is not operated by the American government, which is a common myth. The Federal Reserve is operated by elected government officials with knowledge of government economics for the purpose and functions which I listed above . I do not agree with the terms of ownership, but it is still a machine of government operations.
Consequences of Abolishment
As I just stated, the Federal Reserve operates and works to stabilize many aspects of the American economy. I gave the example of the fundamentals of monopolies, but I'll go further to prove the effectiveness of the Federal Reserve. I'll give a situation, which if not for the Fed. Reserve, the US would find itself victim of a continuous recession. The Federal Reserve has the ability and responsibility of executing economic stimulus and the potential to raise as such when the times call for it. The recession that the US hit in 2008 was helped countered by the actions of the Federal Reserve . These actions were due by the ability of the Fed. Reserve to initiate Quantitative Easing, the actual term for economic stimuli under the situation of an economic downturn . If the Federal Reserve was not around to combat such a situation which the US is still susceptible to, a free market without the Federal Reserve to establish economic discipline and regulations would allow the market to create simultaneous withdrawals in order to save as much money as possible for the individual rather than the corporation. Such a withdrawal would decimate the economy so powerfully, it would hurdle the recession into a depression. A simultaneous market withdrawal was one of the main causes for the American Great Depression , a first for the brand-new American economics, which they simply could not foresee. Today, with the knowledge we have of economic forecasts, the absence of the Federal Reserve and her ability to maintain the power of the American economy is too embedded within the American system to simply abolish, and better equipped to prevent another depression. I personally, would like to see it under total control of the American government and further American involvement in the market. However, this is whether abolishing the Federal Reserve is a good idea, which I do not agree with.
I'll leave my rebuttals to the next round in order to abide by the rules. I hope my opponent makes a great argument next round, which I don't doubt. I also hope I can convince you that you were not "an ignorant socialist" because I'm a Quasi-Socialist and you got it right as a socialist, before :P
I'm sorry I have to stop this debate, I do not have the time since school is starting up this week, and it's about to be a first week bumpy moment. I will be willing in a week to redo this debate if willing? But I shall have to forfiet this.
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