CMV: The fact that we have a FED controlled economy is why the US has the highest standard of living even though it doesn't pay the highest wages.

ESSENTIAL: A FED controlled economy doesn't mean we don't have free market capitalism, it just means we have a stable financial system that prevents the economy from going into full-blown capitalist mode (think 1929) and have govt control over monetary policy.<br><br>I (22) M from India here, in our country wages are extremely low (my sister works a software engineer job, which is quite high paying for us, for 17k a year) yet people are sceptical about moving to the US because the cost of living is so high. Also, the price for essentials is definitely higher in the US. <br><br>Now I have been in the US for 4 months for college, I have a 25hr/week job and I make about 2k a month while paying 500 in rent. I don't have any expensive hobbies or anything other than eating out once a month. I have been able to save 10k in my US bank account. I literally don't have to worry about money at all.<br><br>I am a middle-class Indian, and there is no way I would have been able to save money in my own country.<br><br>Here are my arguments as to why the FED is responsible for the high standard of living:<br><br>1. FED is basically a 'Price/Value Standard' - Most people believe the USD is just a FIAT currency that can be arbitrarily printed and has no value. The USD is actually pegged to the US economy which is a good measure of value. The US has a very adaptable economy that can adjust to changes in the global economy, having a central bank ensures that such changes do not cause hyperinflation that would have been seen in other countries, eg. India, Brazil, Argentina, etc. <br><br>2. Economic Fluctuations are controlled to a great extent. - This stable financial system has the power to adapt to market changes, and hence ensure that the market doesn't go into a free fall. This prevents hyperinflation and ensures smooth transition to a more service-based economy. <br><br>3. Unrestrained Printing of Currency - The FED is also able to print currency without a standard as a last resort when the economy is in turmoil. Even if it causes inflation, it won't go into hyperinflation and people's entire savings will still remain valuable. <br><br>Now I'm not saying the FED is perfect, but if we go for a completely free market economy, the standard of living will go down. I would love to be proved wrong tho.<br><br>EDIT: It's funny that you guys are more interested in criticising India and its people than making an actual argument. I'm not from the US, I can't be expected to know everything about its economy.<br><br>Please drop the 'You don't know about the economy' bomb and make a real argument on why the FED is not responsible for the high standard of living.