Ep. 757 DEBATE: Is Fractional Reserve Banking Economically Benign?
The Tom Woods Show
Tom Woods
4.8 • 3.3K Ratings
🗓️ 12 October 2016
⏱️ 46 minutes
🧾️ Download transcript
Summary
When I recently (episode 745) spoke to Professor Jeffrey Herbener about the economic effects of fractional-reserve banking, I recalled that John Tamny and I had had a disagreement on the subject. So for this episode I’ve invited both of these gentlemen for a formal debate on the subject. I think you’ll find the result enlightening.
Transcript
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| 0:00.0 | The Tom Woods Show, episode 757. |
| 0:03.5 | Prepare to set fire to the index card of allowable opinion. |
| 0:08.3 | Your daily dose of liberty education starts here, the Tom Woods Show. |
| 0:14.3 | Folks, I've just released another free e-book, this one called Education Without the State. |
| 0:26.5 | Grab your copy at no-stateeducation.com or by texting the word educate to 33444. Hey everybody, Tom Woods here. It's another one of our debate episodes. I love these. |
| 0:34.5 | And this one is coming up because in a recent episode I did with Jeff Herbiner, |
| 0:39.1 | when we were talking about the economics of fractional reserve banking, I thought to myself, |
| 0:42.7 | wait a minute, I had a little bit of a dispute with John Tamney about this. |
| 0:45.7 | Why don't we bring him on and have the two of these guys have a discussion? |
| 0:49.8 | So that's what we're doing. John Tamney is editor over at Real Clear Markets.com. He's also |
| 0:55.6 | political economy editor at Forbes. Jeff Herbiner is a senior fellow of the Mezes Institute, |
| 1:01.8 | Department Chairman of Economics at Grove City College, and associate editor of the quarterly |
| 1:06.8 | Journal of Austrian Economics. Gentlemen, welcome to the show. Thanks, Tom. Great to be here. |
| 1:12.2 | Great to be here. I'm so glad, John, that you agreed to do this because I just thought of it |
| 1:17.3 | spontaneously while I was talking to Jeff, and here you are doing it. That's good. You know, I tell you, |
| 1:22.7 | and I say this, and everybody knows that you and I have a disagreement on this, I'm giving you |
| 1:27.0 | credit for doing it because I think most people would have just refused. I really do. I think most people this, and everybody knows that you and I have a disagreement on this, I'm giving you credit |
| 1:27.5 | for doing it because I think most people would have just refused. I really do. I think |
| 1:31.3 | most people would refuse it. Whereas you jumped at the chance. So I thought that's great. We're |
| 1:34.4 | going to have some fun doing this. So we're going to do this in the same format, which I've done |
| 1:38.6 | other exchanges on the show. So I'll give each of you an opportunity to have an opening statement. |
| 1:49.0 | And basically, it doesn't have to be anything formal that you planned out. But just summarize what your position is on fractional reserve banking. And then we'll go into responses to what each of you |
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