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The Federal Reserve, which was established in 1913 by the Federal Reserve Act, is a shared government and private owned bank which is the central banking system in the United States. The Federal Reserve regulates the economy to prevent recession; this is done by the amount of money the Federal Reserve Bank loans to private banks, which in turn gives loans to entrepreneurs and individuals. In Lawrence Stratton’s article “The Economics of the Great Depression,” he blames the decline of the American economy and the eventual stock market crash on the Federal Reserve. Stratton states the Federal Reserve “collapsed purchasing power and forced twenty-five percent of the workforce into unemployment...
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