Andrew Jackson was America’s first populist president. In fact, Donald Trump’s “America First” platform is rooted in the Jacksonian legacy. Now, Republican Florida Gov. Ron DeSantis must take up the mantle and carry out his own “Bank War” on the Federal Reserve should he become president.
Jackson is perhaps best known for waging a “Bank War” against the Second Bank of The United States — an early precursor to today’s Federal Reserve. Proponents of the bank argued that it was a necessary stabilizing force for the national economy. But as a champion of the “common man,” Jackson believed that a centralized bank was ripe for corruption and prioritized the interests of the elite over average citizens. He boldly vetoed the bill to preemptively re-charter the bank in 1832 knowing he faced staunch opposition in the run up to his reelection. The power of the Second Bank ultimately went back to the state level until the Fed was created in 1913.
As he wrote on his decision, “the rich and powerful too often bend the acts of government to their selfish purposes.” The “artificial distinctions” of the Bank made “the rich richer” while the “humble members of society — the farmers, mechanics and laborers—who have neither the time nor the means of securing like favors to themselves” suffered “injustice.” Sound familiar?
The Declaration of Economic Independence announced by @RonDeSantis is spot on. He knows we must fight for the American family collapsing under an economy that no longer works for them as quality of life & economic security diminish. #WeWinTheyLose (1/4) #EconomicIndependence pic.twitter.com/SV9LtGA3YF
— Chip Roy (@chiproytx) July 31, 2023
While Donald Trump has brought economic populism back into vogue, DeSantis is expanding the pitch for “reining in the Federal Reserve.” As part of his Declaration of Economic Independence released at the end of July, DeSantis pledged to support “regional banks,” block “attempts to establish a Central Bank Digital Currency,” protect “new technologies” like Bitcoin from “central planners,” and appoint a Fed chair who will focus on “stable prices” over “social engineer[ing].”
DeSantis is taking a leaf out of Jackson’s playbook to help make this a winning issue in the 2024 campaign. The Fed — responsible for controlling inflation levels through interest rates — is historically an easy political target. With inflation still raging, and Biden’s approval rating severely underwater over his inability to handle it, the Fed, which plays a central role in inflation, is more vulnerable than ever. (RELATED: Jobs Market Cools Following Unexpectedly High Economic Growth)
DeSantis has used this opportunity to take aim at Trump-appointed Fed Chairman Jerome Powell, blasting his incompetence and elitism. Powell has been a “complete and total disaster,” he said in a campaign speech, “and people all across this country are paying for it.” Criticizing Trump through his appointees is a tactical move to implicitly hit the former president without alienating the conservative base.
👀📺 NEW VIDEO 📺👀
Economy ain’t workin for ya?
Tell Biden’s recession sidekick to take a hike. pic.twitter.com/nE11XsTOY6
— DeSantis War Room 🐊 (@DeSantisWarRoom) May 4, 2023
While the Fed is ostensibly independent from the president, given that it is not a government agency but an independent banking system owned by banks that make up the consortium, it is certainly not immune from political pressures and incentives of the moment. Unsurprisingly, the Fed under Powell has increased focus on “racial equity.”
Even under Trump, Powell announced a “broad-based and inclusive recovery plan,” using the powers of the Fed to eliminate racial “disparities in employment.” Upon taking office, Biden began further pushing the Fed to take race into account in its policy decisions while Democrats have re-introduced a bill to amend its mandate requiring it to do so.
So too, the transition to digital currency is framed in altruistic terms. It would “expand consumer access to the financial system” and take “key stakeholders” into account — a buzzword used to launder left-wing social priorities into financial valuations. While the Fed maintains it has made “no decision” on whether to implement, blanket denials from federal officials count for little these days.
A digital currency would do more to help those on the top than the bottom however, making financial transactions “faster and cheaper” for wealthy speculators to capitalize on. It would also give the Fed greater power than ever to surveil and control Americans through their finances. The commitment to “protect against criminal activity” serves as a dark omen given how the Biden administration increasingly seeks to criminalize dissent.
This was Jackson’s worst nightmare for a national bank. In the name of helping so-called marginalized Americans, the Fed is consolidating more power than ever over the economy. By choosing certain winners, the Fed is also choosing losers. Of course, the Fed’s racialized social engineering scheme will only impact the middle and working classes; those at the top will continue on just fine, regardless of their race or ethnicity. (RELATED: Will DeSantis’ New Economic Plan Give Him The Boost He So Desperately Needs?)
The solution is timeless: decentralization will always bring greater power back to the common man. Whether empowering state and regional banks or independent cryptocurrency like Bitcoin, elites will have less power to control the lives and fortunes of citizens.
Like Jackson, DeSantis is now taking the opportunity to make the Fed a major campaign issue. By pushing the re-charter vote before the election, Jackson’s opponent believed he could make the Bank a wedge issue. But it backfired as Jackson’s qualms resonated and he walked away with a landslide victory.
Jackson’s concerns about a powerful, central bank are even more salient today given the era of mind-boggling technology we now live in. All a fiery, populist rhetorician has to do is point it out.