Tuesday, May 5, 2015

The Fed

       The Federal Reserve is not beneficial to the economy and the American people. The Fed has the power to create and destroy money, which is called monetary policy. They are not regulated to do this they can create as much as they want and destroy as much as they want. This can directly relate to inflation. The more dollars we have in the circulation, the less the currency is worth. Our money supply has rapidly increased over the past century due to the  Federal Reserve printing massive amounts of money like there is no tomorrow. Also, the Board of Governors at the Federal Reserve are not directly elected by the American people. This means that those who run the Federal Reserve are unaccountable to the people. The seven members of the Board ultimately decide the price or purchasing power of our money. That kind of central planning would never exist in a true free market economy. The Fed essentially can control the cycles of the economy which is not good. It bears significant responsibility for every financial crisis over the past century including the Great Depression, the stagflation of the 1970s and recent economic meltdown. The Federal Reserve lowers interest rates below the market rate which increases the supply of money. Throughout its 100-year history, it has always operated under a veil of secrecy. The Federal Reserve has never been fully audited by any outside source. Our elected representatives in Congress have very little oversight over the central bank. It has continually resisted any kind of congressional oversight claiming that it would endanger its “independence.” The policies of the Federal Reserve hurt the average American. It benefits the privileged few at the expense of the rest of us. The central bank serves big spending politicians, big bankers and their friends. The Federal Reserve acts as the lender of last resort. An audit of the Federal Reserve revealed $16 trillion in secret bailouts to corporations and banks around the world in less than three years. These bailouts happened without a single vote taking place in any chamber of Congress.

http://www.federalreserveonline.org/
http://www.cnbc.com/id/102469189
http://www.freedomworks.org/content/top-10-reasons-end-federal-reserve

Thursday, April 9, 2015

The Hidden Economy

      The underground economy involves the exchange of goods and services which are hidden from official view. Examples of such activities range from babysitting “off the books” to selling narcotics. To the worker it is beneficial because it is not on the books they do not have to pay taxes to the government and thus any money they make they get to keep. Also these people having essentially more money because it is not taxed can lead to an increase in the purchasing of goods and services thus stimulating the economy. This hidden economy can also be bad. The first is that it causes the government to loss money so they increase taxes to make up for the money lost in the hidden economy. Those who participate in the hidden economy don't receive social security and health benefits for the tasks they are doing.    

Net Neutrality

Net Neutrality is the freedom of speech for the internet. People can access anything they want and comment on whatever they want. Consumers have the freedom to say whatever they want on certain issues and give their two cents. If this is taken away that freedom is lost. Big businesses would own the internet and control what goes on it. These big businesses have the money to make their sites faster unlike the small free lance sites that don't have the money to do it and are also what keeps the internet open to everyone.  For consumers this would mean that only big companies would be able to have fast internet so little businesses would go bankrupt, thus limiting competition and increasing prices.  The FCC controls the neutrality of the internet because is in charge of all communications, including the internet, radio, and television.

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Merrit v. Spoils

     There are two systems in the American government over the years. The spoils system and the merit system. The spoils system is a way of awarding friends or rewarding people for something they did to help you get there. These people are usually not qualified for this job but get it because of their connections. The merit system gives people jobs that are qualified in that field and a good fit for the job. It is like a promotion for the person in their field. 
     Andrew Jackson's administration gives a good example of the spoils system. He defied the policies and hired close friends to his cabinet instead of people more qualified for the job. The merit system would then be created to stop the spoils system from plaguing the government. the Pendleton Civil Service Reform Act, which made the merit system common practice. The fitness of the candidate is determined by the ability to pass a written competitive examination, given by a commission of examiners. The answers submitted by candidates must be unsigned, so as to obviate the possibility of favoritism on the part of the examiners. It put more qualified people in office and kept politics a little more fair. The spoils system is still in use today. 
        The Washington Post's T.W. Farnam writes that Obama has doled out ambassadorships, at the same rate as the Bush administration (24 in total), despite all those promises by the former in 2008 to enact "the most sweeping ethics reform in history." That Obama handed out posts (47 administration jobs to top bundlers overall) shouldn't be surprising. Presidential candidates frequently break promises, especially if that candidate promises not to do something all his predecessors have done.