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posted: 10/7/2012 4:43 AM

Federal government is hardly evil

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Federal government is hardly evil

The enormous efforts of the Federal Reserve and its chairman, Ben Bernanke, in working to improve national employment have been reason for numerous news reports lately.

Because of the many strategies which Mr. Bernanke has utilized to increase the rate of GDP growth, I felt it necessary for me to learn something of the history of the formation of the Federal Reserve as a major function of the central government in the U.S. Did you know that prior to the Fed's existence there were thousands of currencies issued by the many state banks in the nation? The U.S. had spent a century with a dysfunctional decentralized banking system which stunted economic growth in the country. After studying central banks in other countries, Congress designed legislation to correct the dysfunction and passed the Federal Reserve Act in 1913.

Although the Fed has made mistakes in controlling the money supply and the availability of credit in the country, its centralized control has contributed tremendously to the economic success which we enjoy. I got to thinking of the ugly criticisms which many politicians have thrown at our federal government and it has made me cringe with disgust. The central bank of the federal government, which is the reason for us to take for granted that our savings are safe, is only one of several central government functions which have increased our economic well-being and the general welfare of all American citizens.

Before you cast your vote this fall, pause to think how many ways the federal government has provided services where the private sector has failed or cannot meet the demands of a modern society. Then vote for those electorates who will strengthen the central government, not destroy it.

Tom Teune


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