Keep Our Sights on the Monetary Target
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In the midst of a presidential campaign, it’s easy to get sucked into such mundane discussions about which presidential candidate will be better at managing and running the welfare-warfare state and managed-economy way of life under which we live. We libertarians must instead keep our vision focused on the target — the prerequisites for a genuinely free society rather than a better-managed serfdom.
Consider monetary policy. It’s easy to get embroiled into a discussion regarding the Federal Reserve’s interest-rate policy. Did the Fed raise interest rates too rapidly. Did it cause a recession? Has a recession already occurred or is it still on the horizon” Did the Fed lower interest rates too soon? Should it have lowered rates by a quarter point rather than half a point? When should the Fed lower rates again?
All those questions, of course, assume the continued existence of the paper-money system and the Federal Reserve System, which is also known as a central bank. Its job is to manage the quantity of paper money in the economy. It is the Fed, through its decades-long policy of printing vast quantities of money to cover ever-increasing federal expenditures, that is responsible for the decades-long debasement of the U.S. currency.
Thus, a popular mantra among libertarians is “End the Fed.” But ending the Fed is not sufficient because it still leaves a paper-money system intact and the federal government in charge of monetary policy. A necessary prerequisite to achieving a free society is ending all government involvement in money. In other words, a total free-market monetary system. No central bank. No government-established paper money. No legal-tender laws. A complete separation of money and the state, just like the separation of church and state.
Obviously, that is not the type of monetary system we have today. We have a monetary system in which the federal government has designated, through its “legal-tender” laws, paper money to be the nation’s official money. It is also a system in which the Federal Reserve — a central bank — is in charge of managing this paper-money system. It is this system
Article from The Future of Freedom Foundation
The Future of Freedom Foundation (FFF) is a leading voice in libertarian thought, tirelessly advocating for individual liberty, free markets, and limited government. Established in 1989, the FFF is more than just a think tank; it’s a hub for intellectual exploration and policy advocacy that draws on the classical liberal tradition and Austrian economics. Through insightful articles, videos, and events featuring top libertarian minds, the organization provides a robust critique of mainstream politics and policies, championing instead the principles that underlie a truly free society. For anyone seeking a principled stand for freedom and limited government, the Future of Freedom Foundation serves as an invaluable resource and an inspiring beacon.
