Anonymous asked in Business & FinanceOther - Business & Finance · 1 decade ago

Why shouldn't the USA have a national bank?

Up until President Andrew Jackson killed it, the country had a national bank. If we had one now, interest collected on investments could pay off the national debt, shore up Social Security, and so on. Why would economists object to a national bank? England has one and it has been very successful

2 Answers

  • 1 decade ago
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    England also has private banks.

    The US has a national bank - the Federal Reserve - but they operate as regulators, not as a traditional bank.

    There are tons of benefits to free-market banking:

    1. You don't like your bank, go elsewhere!

    2. Banks compete for highest interest rates on CDs and lowest on mortgages.

    3. Fees vary between banks.

    4. Banks tailor different packages and offer many different options.

    Hope this helps!

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  • 1 decade ago

    in a capitalist country like USA, the belief statement is " It is not business of government to do business" Then, if govt. competes it can put private players in difficult time as govt. can loose a lot and still survive in business.

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