2020 has made us all think hard about our current reality. With the coronavirus pandemic and serious social unrest in the USA, alongside a looming election which is making people on all sides pretty nervous, it’s not exactly been an easy year for anyone. Financially, the world is turbulent at present; the pandemic has sent global economics into a total spin, with factories, farms, courts, travel and stores all closed for business for a period of months. This has led to a significant drop in many people’s personal financial viability, with over 40 million Americans alone registering for unemployment. It is truly a stressful time for all.
So what does this have to do with American banking history? After all, America’s bank is not even 300 years old; this country is younger than most of us realize. Yet all the way back in 1791, the continental congress could not have envisioned their system working for the next three hundred years – or could they? Our awareness, or lack thereof, of the current system allows
America’s banking system was begun in 1791 by Alexander Hamilton, the first US Treasury Secretary. Alongside the founding fathers, Hamilton wrote the financial system of the USA into existence, assuming the debt owed to France after the Revolutionary War, and establishing America in the global economy. This allowed America’s wealth to build and our currency to gain value, putting us on the map and helping us gain power and status.
So how does this apply to you? Well, one subject which has haunted many Americans is debt. Debt accumulation has ruined people’s lives, forced them from their homes, and even in some extreme circumstances caused people’s deaths. A staggering 78% of American workers live paycheck to paycheck, some of the highest numbers in the developed world. These people often have debt to pay, and exist in a constant cycle of debt repayment and further financial struggle due to the responsibility of debt payment.
America’s financial system was built upon the foundations of debt. America was born in debt, technically speaking, due to the fact that Hamilton’s conception of our banking system was as a means to repay war debts incurred during the revolution. The very fact that America’s financial system is propped up on war debt suggests its fragility; our current criticisms of capitalism, debt, and the quality of life of the American people are not unfounded. So what can you do about it?
Firstly, get educated. Understanding and being conscious of your own financial situation, and the national financial situation, significantly enhances your understanding of why society is the way it is. Secondly, being aware of the laws and your own rights which were written many moons ago back in 1791 will further aid your progression and help you overcome your own financial issues such as debt. Want to be free of your debts and be financially successful? Learn more about American banking history at www.DTSS.us.
