Federal Reserve: Good or Bad

When the Federal Reserve was first created it did seem like a very reasonable idea. The idea of having a centralized banking system was to control money circulation and limit the amount of inflation in our economy. In 1913 however, when the Reserve was created, from that day on any privately owned banks loaned money from the Federal Reserve, so although they are private their resources are still coming from the governments own reserves. Today, many people believe that the Federal Reserve is against the idea of a free enterprise system and also a market economy. A market economy has five many points; freedom of choice, the ability to own private property, competition, a system of markets and prices and lastly, limited government interference (Council for Economic Education). Basically, it refines the point that the economy should be left alone and kind of just go with the flow. Many studies show that when the Federal Reserve steps in too much they end up destroying every aspect of their main goals in the first place. In 1929 after the stock market had crashed many had no idea it was due to the Federal Reserve's aggressive and hasty decisions. When everything was going well during the roaring twenties, unemployment was at an all time low, Americans had more money than they knew what to do with and the dollar cold buy the world. This is when the Federal Reserve thought it wold be a good idea to put more money into circulation, thinking it would benefit the already growing economy. Boy were they wrong. The stock market crashed because everyone has spent their money on loans and put the money into the stock market. With the ridiculous amount of shares and trades going on the stock market slowly started to collapse. At first the shares were losing value, causing everyone to trad. When everyone realized what was going on they tried to get rid of their trades but were stuck with them. Later, in 2002, way after the whole incident, a former member or the Federal Reserve Board of Governors, Ben Bernanke exclaimed,"Regarding the Great Depression, … we did it. We’re very sorry. … We won’t do it again.", at Milton Friedman's 90th Birthday Party(Gary Richardson, federalreservehistory.org). So, in conclusion, I believe the Federal Reserve always had their thoughts in the right place, they never tried to do the wrong thing and screw up the economy. But overall they need to realize that you cant predict the economy and you cant predict when where and how consumers will by goods or even invest. There are thousands of possibilities of events that occur in the economy, whether they lead to inflation, deflation, stagflation or hyperinflation; but they cannot be predicted. 

PS: this is me at my 8th birthday party, if that face isn't cute enough to get me out of a final then i don't know what is