75% of Americans Favor Auditing the Fed

The latest Rasmussen Report shows that 75% of Americans favor auditing the Fed. We have come a long ways indeed!

One interesting statistic: 41% “think the previous Fed chairman, Alan Greenspan, did a better job.”

This particular statistic illustrates a lack of understanding of the Federal Reserve. After all, it was artificially low interest rates, which were set by Alan Greenspan, that fueled the housing bubble. How then can 41% of Americans believe Alan Greenspan did a better job?

The only answer I can think of is that many people believe Alan Greenspan rescued the economy in the early 2000s, which Ben Bernanke has been unsuccessful in doing thus far. Also, Bernanke’s actions have been much more publicized. Bailing out “too big to fail” financial institutions is unpopular with the public; therefore, it’s understandable his popularity would suffer.

But what the American people need to realize is that artificially lowering interest rates is essentially the same as bailing out financial institutions. After all, financial institutions are the first to place their hands on the newly created money, which benefits them the most.

In my opinion, what this polling shows is that we have much more work to do in educating the public about the Federal Reserve and its role in the current financial crisis. While we’ve come a long way, we certainly have more work to do.

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