Economics is defined as the wealth-producing segment of society. Wealth is defined as the total produce of agriculture and manufacturing. Without products there can be no wealth. Money is not wealth, but a means of exchange and may be called the economic equivalent of wealth. Economics exists because all human beings have needs and desires. The needs of humans are all the same: food, clothing, and shelter. Society is defined as a group of persons regarded as forming a single community. The needs of a society are satisfied by the production of goods society's wealth. The many nonproductive goods, though, they do not create wealth, purchase wealth. Economists such as John Maynard Keynes, Adam and Smith did their best to describe the workings of a market economy, the division of labor in production, the nature of wealth in relation to money, and the difference of productive and nonproductive spending. Both men helped lay out a foundation for which our most famous present da!.
y economist, Alan Greenspan, leads the American Monetary System, The Federal Reserve System.
Banking in the America of 1863 was far from easy or dependable. The First Bank (1791-1811) and Second Bank (1816-1836) of the United States were the only official representatives of the U.S. Treasury - the only sources that issued and backed official U.S. money. All other banks were operated under state charter, or by private parties. Each bank issued its own individual, "banknotes." All of the state and private banks competed with each other and the two U.S. Banks to make sure that their notes were redeemable for full face value. As you traveled around the country, you never knew exactly what kind of money you would get from the local banks. With America's population growing in size, mobility, and economic activity, this multiplicity of banks and kinds of money soon grew chaotic.
In 1863, Congress passed the first National Bank Act providing for a supervised system of "National Banks.
