The "Midnight Law" of 1913: How They Changed The Dollar While You Slept

December 23, 1913. Two days before Christmas. While most of Congress had left Washington for the holidays, President Woodrow Wilson signed a law that would fundamentally change the American dollar forever. This is the story of the Federal Reserve Act—the midnight law that transformed the U.S. monetary system.

In this video, we explore the documented historical events surrounding one of the most significant pieces of legislation in American history. From the Panic of 1907 that exposed the fragility of the banking system, to the secret Jekyll Island meeting where bankers drafted the initial plan, to the intense congressional debates and the final vote on that December evening—this is the complete story of how the Federal Reserve came to be.

We examine the world before the Federal Reserve, when wildcat banking and financial panics were regular occurrences. We look at how JP Morgan personally organized the rescue during the 1907 crisis, and why Americans decided they needed something more permanent than relying on one man's goodwill. We dive into the legislative battle that consumed Congress throughout 1913, the compromises made to pass the bill, and what the Federal Reserve Act actually created.

But this isn't just history. We trace the dollar's purchasing power from 1913 to today, examining how a dollar that could buy 30 Hershey bars in 1913 now struggles to buy one. We explore the Federal Reserve's role through major economic events—World War I, the Great Depression, the stagflation of the 1970s, the 2008 financial crisis, and the COVID-19 pandemic response.

The video presents multiple perspectives on the Federal Reserve's impact. Supporters argue it has provided economic stability and prevented catastrophic collapses. Critics point to boom-bust cycles, wealth inequality, and the 97 percent decline in the dollar's purchasing power. We examine both viewpoints using documented historical data and economic analysis.

This is an educational exploration of monetary history, central banking, and how the decisions made over a century ago continue to affect your money today. Whether you're interested in economics, history, or understanding how the financial system works, this video provides a comprehensive look at one of the most debated institutions in American history.

All information presented is based on historical records, public documents, economic data, and established historical scholarship. This video focuses on documented facts and provides context for viewers to understand this complex topic and form their own informed opinions.

DISCLAIMER: This video is for educational and informational purposes only. It is not financial advice, investment advice, or a recommendation to buy or sell any financial instruments. The content presents historical facts and multiple perspectives on economic policy. Viewers should conduct their own research and consult with qualified financial professionals before making any financial decisions. The views expressed in this video regarding historical events and economic policies are presented for educational discussion and do not constitute professional financial, legal, or investment advice. Past economic performance is not indicative of future results. All data and statistics mentioned are based on publicly available historical records and research current as of the video's publication date.

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