I am an avid reader of George Will. He is one of the few journalists that seems to advocate free market ideals and limited government. However, he penned an article recently that really upset me. He actually defends the Fed and argues they should not be audited. Below is an email I sent to papa George. We will see if he responds.
George,
I was disappointed in your recent article discussing the Fed. I usually side with your thoughtful discourse, but I am surprised that you see the Fed as necessary and, even worse, the savior of the economy. You imply that we have democratic measures in place to minimize the gusts of public passion so the Fed should be protected as well. I wholeheartedly disagree. If Congress were somehow in charge of printing our money, as the Constitution mandates, the public passion would probably rise up and vote out the representatives after a mess like 2008. And, that would be the appropriate measure since the mess would more than likely be caused by a loose monetary policy. The Fed, on the other hand, creates the conditions for a 2008 and will escape any punishment. Oddly enough, people applaud the Fed for putting out the very fire they created. Of course, they probably established the tinder for the next blaze in their corrective actions. Of course, we will never know because they won’t tell us what they did. I guess we will find out the hard way. But, I fear the blame will be placed elsewhere, especially if market oriented journalists defend this banking organization.
For someone who claims to believe in free markets, you are ignoring a key factor that makes markets work: transparency. Aren’t all parties involved in the economy suppose to make decisions based on all available information. The Fed controls an enormous part of the economy, yet that information is not disseminated to the free markets, except by their official statements. But, I am sure they would never try to mislead the markets even though they are not held to account. Finally, the very fact that you believe a small fraction of the free market, regardless of the degrees attained, can control interest rates and money supply better than the markets is disappointing.
I will still read your work with great enthusiasm and tune into the Sunday morning show with the host from Good Morning America, but I was sorely disappointed in your piece on Fed bashers.