April 6, 2016—On this episode of The Libertarian Angle, Jacob Hornberger and Richard Ebeling of the Future of Freedom Foundation look at the history of the Federal Reserve and explain the economics behind the movement to End the Fed.
“When Ron Paul was running, there was this mantra that became very popular called ‘End the Fed,’ and it was a phenomenal thing. I mean, who would have ever thought the Federal Reserve would become a major issue in a presidential race, but Ron Paul made it an issue,” Hornberger said.
“From 1922 to the dawn of 1929, the Federal Reserve decided to, again, micro-manage the economy, not to create a war-related inflation, but supposedly to stabilize prices,” Ebeling explained. “Neither inflation nor deflation, but this again set an unstable situation, because in a growing economy, as the 1920s were, it would’ve naturally been the case that prices would have generally fallen as technology and production was resulting in more goods offered on the market at lower costs to production. But to counteract what would have a market-induced and healthy, natural price deflation, the Federal Reserve took most of the 1920s to pump money in to prevent prices from falling to the degree that markets would have gently set them.”
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