The Minority Mindset Show The Year That Changed Money Forever
Dec 26, 2024
Unravel the economic secrets of 1913, a year that shifted America's financial landscape forever. Explore how the creation of the Federal Reserve and the introduction of federal income tax fundamentally changed wealth accumulation. Delve into the complexities of modern tax rates compared to the past. Discover the truth about fractional reserve banking and hidden government spending. This enlightening conversation highlights the importance of understanding our economic system to build wealth in today's world.
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1913: A Pivotal Year for Money
- The year 1913 significantly changed the US monetary system.
- This was due to the creation of the Federal Reserve and the introduction of federal income tax.
Evolution of Federal Income Tax
- In 1913, federal income tax was simple, with rates of 1% over $3,000 and 6% over $500,000.
- Adjusted for 2024 inflation, these thresholds are $95,000 and $15.9 million, highlighting the difference.
Fractional Reserve Banking and Panics
- Fractional reserve banking involves banks lending out a portion of deposited funds.
- This creates a system vulnerable to panics if depositors withdraw en masse.