History of Banking in the US

The history of the United States has always been the history of the people

versus banking.

And schools will teach all about the Sugar Act, the Tea Act, the Stamp Act,

but they just

gloss over the reason for all those taxes.

At King George in England, we're in 183 million dollars of debt to the banks.

And you don't even hear about the Currency Act and restrictions on American banking.

By 1791, Alexander Hamilton

was pushing for an American central bank.

And isn't it convenient that today they make plays to glorify him.

But by 1811, Congress realized that central bank thing was a bad idea.

And they didn't renew the charter of the first bank of the United States.

But then the War of 1812 happened. Remember the war? You need money.

And in 1816, the second bank of the United States was chartered.

But 20 years later, Andrew Jackson would go to war with them.

Famously saying that the bank was trying to take him out,

but he would take them out. And he did.

Canceling the charter of the second bank of the United States.

And yes, he was correct.

They literally tried to take him out.

But the assassin missed and Jackson beat him with his cane.

And after that, the craziest thing happened.

Mainstream historians will tell you, America went into a depression.

And it did for about four years.

But after that, the price of land had dropped 80

in many places. Places like Chicago.

Because the crash wiped out speculators and eastern elites.

But cleared the way for ordinary people to settle west.

As Jackson hated concentrated financial power.

And in the long run,

taking out the bank really empowered ordinary Americans.

And did I mention that

Jackson is the only president in US history to fully pay off America's debt?

And he did it with no federal income tax. He did it with tariffs.

And with the central bank gone.

And a tax policy of American protectionism.

Tariffs were as high as 50

under President William McKinley. And America just boomed.

He had the most prosperous middle class in the history of the world.

American steel. American oil. American automotive.

But then in 1913,

Congress passed the Federal Reserve Act.

And America once again had a central bank.

They also passed the federal income tax.

And since then, it's all been downhill for the middle class.

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