I think that the reason a lot of people think that the Fed is a Bad Thing is that they believe it's a "private company". But it's not really;
it's what is called "quasi public".
The seven members of the Board of Governors are appointed by the President and confirmed by the Senate to serve 14-year terms of office. The
President designates, and the Senate confirms, two members of the Board to be Chairman and Vice Chairman, for four-year terms.
Its job is to make monetary (as opposed to fiscal) policy.
Now admittedly, if you're an Austrian-school fan (as I am), you're not crazy about the Fed. A lot of my more laissez-faire friends don't like it
or -- or John Maynard Keynes, either. But that stems from their dislike of government interference in the economy rather than the belief of a Huge
And if you still don't have the answer to your question "Why can't we just print more money to help the poor?"
it is that printing more
money drives inflation, because printing more money won't increase the number of cars or gallons of gas or loaves of bread. What you will have is
twice the amount of money chasing the same
amount of the product, which means that the prices will go up.
If you're really interested in the way the economy works, and are willing to invest the time and effort to learn more about it, your best choice
would be to sign up for a macroeconomics course at your local junior college.
i think it will give you some excellent insights into how both fiscal and monetary policies (ant they are very
different things shape our
economy and standard of living. You'll also be able to get a pretty objective look at things like command versus market economies; the cost of
budget deficits, international trade, including "free trade", tarriffs, trade deficits, etc.; and the correlations between economics and
For someone wo really want'sx to know how money works, you can't beat a first-semester econ course.
And as far as finding out about the Fed, I'd suggest that, in addition to reading all of the anti-Fed
literature (some of which is very good),
you should also look at the Fed's website: www.federalreserveonline.org...