Even a 5-year-old knows something is wrong with fractional-reserve banking

by Stephan Kinsella on August 3, 2009

I was writing a check the other day, and my then-5 year old asked how checks worked. When I explained to him he asked how the banks made money, so I explained that they loaned it out to other people and got interest on it, and paid us some of it. He immediately freaked out and got paranoid–so I pulled out the camera and shot this. A natural born Rothbardian!

{ 2 comments… add one }

Todd Andrew Barnett August 5, 2009, 4:45 pm

Very well done, Stephan. I like the fact that at least you’re teaching your son about the banking system, which is a good intro to the evils of government finances. It’s also a great way to teach Ethan about the shamful nature of the monetary policy and the way checks are cut. Some great stuff you’ve got here.

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Dean Wilson May 17, 2012, 1:36 pm

This was my reaction when I learned about fraction reserve banking and I was 20. It’s definitely THAT unjust.

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