If the Fed were disbanded, they would all have to seek other work, perhaps leading to prosperity. Under the present institutional arrangements, they undermine the economy. On the other hand, this is an empirical issue. Presumably, many of them would obtain faculty positions, on the basis of which they would be inculcating their charges with the same voodoo economics with which they ruin the economy.

Why? How so? That is because one of their present roles is to determine, among other things, the interest rate. Thus, this job of theirs is "beneath contempt." From whence did this phrase spring? It comes to us courtesy of an economist who has been accurately characterized as a "national treasure." Here is the quote from Thomas Sowell (from Sowell's textbook, Basic Economics) to which he refers:

"Another reason for public support for protectionism is that many economists do not bother to answer either the special interests or those who oppose free trade for ideological reasons. The arguments of both have essentially been refuted centuries ago and are now regarded by the economics profession as beneath contempt."

Well, so it is for price controls, and, as interest rates are a price, just like that of imports, so too is controlling them via the Fed's central planning "beneath contempt."

Moreover, if there is anything we have learned both from theory and practice, it is that price controls create economic disarray.

Have we learned nothing from the almost perfectly controlled experiments of East and West Germany, North and South Korea, a true rarity not only in economics, but in all of social science? Presumably not, otherwise the Fed would never have lasted as long as it so far has.

Central planning never works and never will work. Prices, market prices, free market prices, are the eyes and ears of the economy. Without them, we would not know whether it is economically better to use platinum or steel for railroad lines. The former can do a better job. But its market price is so high we may do no such thing, if we want to allocated resources productively. Its relatively high price indicated that this metal should be used for more important purposes elsewhere in the economy, and lower-priced steel for this use.