The Federal Reserve Act of 1913 was political from the day Woodrow Wilson signed it. It has gotten more political ever since, increasingly becoming an instrument for robbing the poor—savers and pensioners—and giving to often profligate borrowers.
But let’s keep our focus on the topic of government-encouraged debt and how it contributes to economic instability.
It’s not just an issue of bad monetary policy. We also have a tax code that encourages companies to disproportionately utilize debt.
…one of the TCJA’s good points…limits that the legislation places on corporate interest deductibility, which…could change the way companies in the United States do business and make the U.S. economy more stable.