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Repeal Full Employment Act of 1978
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11/29/2015 11:36:42 AM
Posted: 11 months ago
With Alan Grayson sponsoring a useless Audit the Fed bill and Elizabeth Warren attempting to end "lend of last resort" bail outs, here is a real idea to reduce the Fed's responsibilities.
The Humphrey-Hawkins Full Employment and Balanced Growth Act passed in 1978 and is the basis for the US central bank's dual mandate. The bill orders the Federal Reserve to "promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates."
Since the passage of this harmful and reckless bill, much more is understood about the results of monetary policy. For a central bank to maximize employment statist Keynesian economist point at a mythical curve. The Phillips Curve attempts to link inflation to unemployment. Even supporters of the curve will not even try to explain its causation, only focusing on correlation. Therefore, central banks are justifying policies that harm millions of people based on correlation with unknown causation, very un-scientific.
For the stable prices part of the dual mandate, using the quantity theory of money monetary inflation causes prices to rise. Thus, central bank's money creation policies are causation for higher prices.
Relieving the US central bank of this dual mandate will allow the Fed to focus on banking regulation.
A free market anti-capitalist
If it can be de-centralized, it will be de-centralized.