Sen. Elizabeth Warren Doesn’t Understand Free Banking!

Abstract

In recent times, the comparison of crypto currencies to the 'wildcat' banking system of 18th century America has been an increasingly popular comparison, Elizabeth Warren is yet another proponent of this historical revisionism. The ordinary taught for the purposes of smearing private enterprise, and laissez-faire systems continue to live on. However, such revisionism, even if socially drilled into the heads of the increasingly interventionist and socialistic youth is utter nonsense and I set out in this article to prove that. Contrary to so many claims, the 'wildcat' period of banking in the history of the US was not either common, nor was it any fault of laissez-faire or free banking systems. Quite the contrary, it was caused by regulations on these banks that weakened them, and by endogenous conditions such as the Civil War which no rational person could possibly expect to come out of unscathed from. These free banks in places such as Illinois for example, were successful for a period in minimising losses for depositors, and would have been stable had it not been for an interventionist government claiming it was creating 'stability.'