Week 1 Discussions: Money And The Financial System

Week 1 Discussions "Money and the Financial System" Please respond to the following

Please respond to the following: 4 short but fascinating videos on President Andrew Jackson, as well as various U.S. founding fathers, on fearing the actions and corruptions of big bankers!!! Sound familiar to today!! 1 President Andrew Jackson and Big Banks--sounds like today!!!) --(from History Channel)- 2 (Also Thomas Jefferson) --- and 3 4 ( from HBO film mini series on President John Adams-- (Watch at the dinner table--George Washington, Thomas Jefferson- who had just returned from Paris, Alexander Hamilton, our first Secretary of the Treasury, and John Adams) "Quantitative Easing" cartoon video 5 million hits on You Tube This You Tube Cartoon video has had over 5 million hits!!!!

Fortune magazine even had an entire article on it--where they discussed people were learning economics by cartoon. Quantitative Easing ("printing money" of Treasury/Fed) Printing Money and "How Fed works" cartoon video

Paper For Above instruction

The financial system of the United States has a long history marked by concerns over the power and influence of banking institutions in shaping economic policy and protecting or endangering the interests of the public. The recurring theme of suspicion and criticism toward big banks, prominent among the U.S. founding fathers and presidents, resonates even today amidst debates on monetary policy and financial regulation. This continuity over centuries highlights the enduring struggle between governmental authority, banking interests, and the public good.

Key figures such as President Andrew Jackson and Thomas Jefferson exemplify this skepticism. Jackson, renowned for his populist approach, famously opposed the Second Bank of the United States, which he believed wielded undue influence and threatened the democratic fabric of the nascent nation. Jackson’s veto of the renewal of the bank’s charter in 1832 is a vivid illustration of his distrust of concentrated financial power and his efforts to curb what he saw as predatory and corrupt banking practices (Remini, 1984). Similarly, Jefferson’s writings reveal a cautious view of centralized banking, which he believed could undermine democracy and favor monied interests over the common citizen (Maier, 2010). These historical perspectives demonstrate a consistent concern about financial oligarchies overriding democratic processes.

The portrayal of these historical figures in popular media, such as documentaries and dramatizations, further emphasizes the ongoing debate. The History Channel and HBO mini-series have dramatized discussions and debates at the founding era and early presidency about the potential dangers posed by powerful banking interests. These portrayals serve to educate modern audiences about the roots of American economic skepticism and the importance of financial checks and balances.

Fast forward to the 21st century, the concept of "Quantitative Easing" (QE), often described as "printing money," has sparked similar concerns among the public. A widely viewed cartoon on YouTube explains QE as the Federal Reserve and Treasury pumping money into the economy, aiming to stimulate growth during economic downturns. With over 5 million views, this cartoon has become a popular educational tool for understanding complex monetary policies visually (Mishkin, 2015). Fortune magazine and other financial commentators have acknowledged that many learners grasp economic principles through such engaging and accessible media (Bernanke, 2013).

The historical skepticism about banking and the contemporary debates over monetary policy have similar themes: fears of overreach by financial elites, inflation, and economic instability. The hyperinflation in Weimar Germany in 1923 and the inflationary experiences in Argentina serve as cautionary tales of what can happen when monetary policy spirals out of control. These episodes underscore the importance of prudent regulation and democratic oversight of the financial system (Bresciani-Turroni, 1937; Falkenberg & Brown, 2002). When the public perceives that banks or governments are engaging in reckless money printing, distrust escalates, leading to economic chaos.

The recent banking crises reported in the USA Today article also echo these historical and contemporary concerns, revealing that the same issues—bank runs, liquidity crises, and risky financial practices—continue to threaten economic stability (U.S. Department of the Treasury, 2023). This persistent pattern indicates that lessons from history, if learned at all, must inform current regulation and policy-making to avoid repeating past mistakes.

In conclusion, the fears expressed by America's founding fathers and early presidents about banking power remain relevant today. Media portrayals and educational cartoons serve as effective tools to inform the public about complex monetary policies, fostering understanding and skepticism. Recognizing these historical patterns is essential for informed debate and policy choices aimed at safeguarding the financial system's integrity and serving the broader public interest.

References

• Bernanke, B. S. (2013). The Courage to Act: A Memoir of a Crisis and Its Aftermath. W. W. Norton & Company.
• Bresciani-Turroni, C. (1937). The Economics of Inflation. Allen & Unwin.
• Falkenberg, B., & Brown, G. (2002). Monetary Policy and Public Confidence: The Role of Credibility. Journal of Economic Perspectives, 16(4), 47-66.
• Maier, C. S. (2010). Once Within Borders: The US Empire and Its Hidden Legacies. Harvard University Press.
• Remini, R. V. (1984). Andrew Jackson: The Man. Basic Books.
• Mishkin, F. S. (2015). The Economics of Money, Banking, and Financial Markets. Pearson.
• U.S. Department of the Treasury. (2023). Banking Crisis Report. https://home.treasury.gov/news/press-releases