u/FacetiousOwl

States should generally finance the policies they choose to implement. Federal taxation should fund genuinely federal responsibilities rather than serve as a permanent mechanism for transferring resources among states. When states can shift the costs of their political decisions onto taxpayers elsewhere, federalism loses one of its most important disciplines: responsibility for the consequences of one's own policies.

The First and Second Banks of the United States were chartered for 20 years.

When Wilson signed the Federal Reserve Act, it was given the exact same lifespan. It was supposed to die in 1934.

Then the McFadden Act comes along. Signed by Silent Cal on February 25, 1927, despite his otherwise Constitutionalist and non-interventionist policies, the act rechartered the Fed banks indefinitely. It also greatly eased restrictions on the shenanigans that member banks could get involved in - like speculating in real estate - and these shenanigans may have contributed to the Great Depression.

https://www.federalreservehistory.org/essays/mcfadden-act

I just learned this today.

I believe the housing affordability crisis is real, but I reject the idea that it represents a failure of the free market or that it can simply be explained as a nationwide “housing shortage.” The term shortage is too often used as a convenient justification for further government intervention without examining whether there is actually a physical shortage of housing in a particular market or whether housing has simply become unaffordable at current prices. Zoning restrictions, permitting requirements, density limits, subsidies, favorable mortgage policies, artificially low interest rates, and government efforts to protect property values have distorted both supply and demand and contributed to inflated housing prices. When affordability deteriorates, the government often responds with still more subsidies and intervention rather than allowing prices to correct. I believe market corrections, including falling home values, are a necessary part of a functioning market because they bring prices back in line with what buyers can actually afford. We cannot simultaneously demand continuously rising property values for existing homeowners and affordable housing for future buyers. The solution is not to continually manufacture or subsidize demand under the banner of a “housing shortage,” but to remove unnecessary government barriers and allow supply, demand, interest rates, rents, and property values to adjust naturally.

A free market requires allowing markets to correct. If policymakers repeatedly intervene to prevent falling asset prices, they encourage ever-greater risk-taking, larger bubbles, and ultimately more severe corrections. Protecting investors from losses while ordinary people bear the costs of inflation undermines both market discipline and equality before the law

At a deeper level, many Americans increasingly appear to be operating from divergent moral foundations, and, just as importantly, they increasingly believe their political opponents lack any coherent moral foundation at all. Research we recently conducted at SNF Agora found that over 50% of partisans believe that members of the opposite political party are not just bad for politics, but downright evil. This dynamic helps explain the intensity of affective polarization throughout the country. It also presents a deeper challenge for liberal pluralism: how can democratic institutions earn legitimacy among citizens who judge them according to fundamentally different moral standards?

"In just a matter of months, 18 law enforcement officers in the Peach State have been arrested for misusing Flock Safety camera data in what seems to be a deeply concerning trend, highlighting the need for stricter oversight of mass surveillance technologies."

Years of artificially low interest rates have encouraged unsustainable economic expansion by making capital unusually cheap and encouraging excessive borrowing and speculation. While this monetary policy has inflated asset prices, the benefits have not been shared evenly. Many workers have experienced stagnant real wages as the rising costs of housing and other assets have outpaced income growth, making it harder to build wealth despite economic growth on paper.

The 2013 "taper tantrum" illustrates how dependent financial markets had become on exceptionally accommodative monetary policy. When the Federal Reserve merely suggested slowing the pace of its asset purchases, investors reacted sharply, driving volatility across equity and bond markets. The episode demonstrated that many market participants had come to expect continued monetary support and were unwilling to tolerate even the prospect of a normalization of policy.

Inflation and prolonged monetary accommodation distort the price signals that free markets rely upon. Rather than allowing interest rates to reflect the true supply and demand for capital, artificially suppressed rates encourage the misallocation of resources and delay necessary market corrections. If the United States hopes to restore a healthier economy, the Federal Reserve must be willing to raise interest rates when inflation demands it, even if doing so slows growth or lowers asset prices in the short term. Sound money is a cornerstone of a free-market economy because it allows prices, including the price of credit, to accurately reflect underlying economic conditions rather than persistent monetary intervention.

Sources:

Understanding the 2013 Taper Tantrum: Causes and Market Impact

Fed may need to hike rates if inflation does not ease soon, Jefferson says | Reuters

"Private property enables individuals to pursue happiness through their own free choices. It also shields our individual and institutional projects from arbitrary power."

Should the right to vote and political representation be completely independent of tax contributions, or does a healthy republic require a stronger connection between those who fund government and those who direct its spending? How would classical liberal principles of individual rights, equality before the law, and limited government address this question?

"Zoning represented a step back to collective security from individual opportunity. New immigrants and black migrants would not have the same opportunities. New Deal programs to promote homeownership reinforced the zoning regime (the “redlining” practices that we hear so much about). The Supreme Court held racially restrictive covenants to be unconstitutional in 1948, but zoning regulations continue to have their effect. In 2021, the city of Berkeley, California, repealed its single-family zoning restriction. As a local activist put it, “We’re known for our progressive history, but we have a couple of skeletons in our closet.”

"For American consumers, higher aluminum costs flow into the retail prices of food, beverages, foil, appliances, and more. For US manufacturers, the steep premium means higher costs and reduced competitiveness. Aluminum is a critical input for both advanced manufacturing – automotive, aerospace, defense, etc. – and less capital-intensive industries like food production. Today, American firms pay much more for the metal than do their overseas competitors."

About a year ago, I posted on this sub looking for advice because I was worried my criminal record would prevent me from getting into accounting. I’m happy to say things turned out much better than I expected.

I took this sub’s advice and focused on applying to smaller firms and gaining experience wherever I could. I started in A/P doing nonprofit accounting, then doubled up on jobs and took a seasonal tax prep position during tax season. That experience helped me build skills, meet people in the profession, and eventually led to a referral to my current position as a tax associate at a small firm.

I’m now preparing to take my first CPA Exam section.

I wanted to share this because when I first started, it honestly felt like my career options were extremely limited. If anyone else is in a similar situation, don’t underestimate the value of small firms, seasonal work, networking, and simply continuing to build experience step by step.

Things can improve a lot faster than you think.