David Fitzwilliam – US Monetary & Economic Policies since 1900
Before 1913 the Federal Government was limited and revenue was from tariffs. After 1913 Government expanded, progressive income tax (16th Amendment) was passed, and the Federal Reserve was established. From 1860 to 1913 The US economy grew from 1/3rd to 180% of the British economy. Both were on the gold standard. In 1907 there was a banking crisis which led to the Federal Reserve passage. In 1930 the Brits went off the gold standard and pushed the US recession into a depression. After 6,000 banks closed, President FDR forced private gold to be sold to the government for $21 and later raised the price of gold to $35 where it staid until 1971. As the result of the banking crisis of 2008, TARP was passed and the Fred started QE1,QE2,and QE3 ( expanding the US $’s by 400%).