In the annals of American history, the mechanisms by which the government funded its initiatives have evolved dramatically, especially regarding war and infrastructure. A pivotal moment in this evolution was the establishment of the Federal Reserve in 1913. Prior to this, the U.S. government's capacity to engage in significant expenditures like warfare or major public works was directly tied to its ability to sell bonds to its citizens. This system placed a tangible check on governmental power, ensuring that any large-scale federal spending had the backing of the populace - essentially, it was a government of the people, by the people, for the people in a very literal financial sense. The Pre-Federal Reserve Era: Bonds and the Democratic Check In the days before the Federal Reserve, the U.S. government operated in a manner that might seem alien today. If the government wanted to go to war or build bridges, it needed to finance these endeavors by selling...
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