America urgently needs "Economic Literacy"
Trump’s visit to the Fed signals a necessary awakening for every American...
For too long, economic policy has been the domain of a select few—elites in suits, cloistered in boardrooms, wielding terms like “monetary policy,” “M2” and “trade tariffs” as if they were arcane spells decipherable only by the initiated. Interest rates, trade deals, and central bank decisions shape the lives of every American, yet the “Average Joe” has been excluded (one could argue intentionally) from knowing the full details being discussed by making them overly complicated with little in the way of explanation.
While financial literacy—knowing how to budget, save, or invest—is undeniably important, it pales in comparison to the urgent need for economic literacy. The decisions made by institutions like the Federal Reserve have a far greater impact on our lives than almost any personal financial choice, and it’s time we demand access to this opaque world. President Donald Trump’s historic visit to the Federal Reserve on July 24, 2025, marks a symbolic first step in breaking down those walls, signaling a moment when the public might finally claim a stake in the economic forces that govern us.
Financial literacy is a practical necessity. It teaches us to balance checkbooks, avoid predatory loans, and plan for retirement—skills that empower individuals to navigate their personal finances. But this knowledge operates within a larger, often invisible framework. Interest rates set by the Federal Reserve dictate the cost of borrowing for homes, cars, and businesses. Trade policies, like the tariffs Trump has championed, influence the price of groceries, clothing, and electronics. These macroeconomic forces ripple through every paycheck, every mortgage, every job prospect, dwarfing the impact of any single budgeting decision.
Studies from the National Financial Educators Council among others have routinely found that while a solid percentage of Americans feel confident in managing personal finances (although that is dropping), a much smaller amount understand basic economic concepts like inflation or monetary policy. This gap is no accident; it’s the result of a system that has long “gatekept” economic knowledge as the province of elites. There is perhaps no better example of this than the famous “bubble bath” scene featuring Ryan Gosling and Margot Robbie from the 2015 movie “The Big Short.”
The Federal Reserve, often shrouded in mystique, exemplifies this exclusion. Its decisions on interest rates can make or break economic opportunities for millions, yet its inner workings remain largely incomprehensible to the public.
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When the Fed holds rates steady at 4.3%, as it is in 2025 amid Trump’s tariff policies, it affects mortgage rates, credit card debt, and small business loans. When it chooses not to cut rates, as Trump has repeatedly demanded, it can slow economic growth, impacting jobs and wages. These are not abstract concerns—they determine whether families can afford homes or businesses can hire. Yet, the Fed’s decision making is conducted in a language of jargon, with terms like “quantitative easing” or “FOMC meetings” that alienate the layperson. This barrier of understanding has allowed elites—economists, policymakers, and Wall Street insiders—to maintain control over a system that shapes every American’s life.
President Trump’s visit to the Federal Reserve headquarters, the first by a sitting president since 2006, is a provocative challenge to this status quo. Accompanied by allies like White House budget director Russell Vought and Federal Housing Finance Agency Director Bill Pulte, Trump toured the Fed’s $2.5 billion renovation project, spotlighting what he and his team call fiscal mismanagement.
The visit was less about construction costs and more about signaling a broader intent: to pull back the curtain on an institution that has operated with little public scrutiny. Critics may argue that Trump’s focus on the Fed’s renovation is a distraction from his push for lower interest rates, but the symbolism is undeniable. By stepping into the Fed’s sanctum, Trump brought a spotlight to a place where decisions affecting every American are made, often without their input or understanding.
This moment underscores why economic literacy is vital. If Americans understood how the Fed’s decisions ripple through their lives, they might demand greater accountability. For instance, Trump’s tariffs, which Powell claimed could drive inflation by raising the cost of everyday goods and cited as a reason for him holding rates steady. Without economic literacy, the public is left to suffer the consequences of that decision without grasping their root causes or who is actually responsible for sky high mortgage rates.
Similarly, when House Speaker Mike Johnson suggested revisiting the 1913 Federal Reserve Act, it sparked debate about the Fed’s independence—a debate most Americans are ill-equipped to engage in. Economic literacy would empower citizens to question whether the Fed’s autonomy serves the public or shields it from necessary oversight.
This is a power dynamic. Elites benefit from a public that doesn’t question trade deals or interest rate policies because they are unaware of what is being discussed. When Trump allies like Vought argue that the Fed’s renovation is out of compliance with approved plans, they’re tapping into a broader frustration: the sense that institutions like the Fed operate above the fray, unaccountable to the people they serve. Whether or not the renovation costs—pegged at $2.5 billion with reported overruns—are justified, the public’s inability to engage with such questions highlights a deeper issue. We’re taught to balance our budgets but not to question the systems that dictate our economic reality.
Breaking this cycle requires a cultural shift. Schools, which hardly even emphasize personal finance, rarely teach the mechanics of monetary policy or trade. Media outlets, even those covering Trump’s Fed visit, often frame economic stories in ways that assume prior knowledge, leaving the average reader bewildered. We need accessible education—podcasts, community workshops, or simplified explainers—that demystifies these concepts. Imagine a world where Americans can debate the Fed’s dual mandate of price stability and maximum employment with the same fluency they discuss their 401(k)s?
Trump’s visit, while controversial, is a crack in the wall of economic exclusion. It’s a reminder that the decisions shaping our lives—made in marble-clad buildings like the Fed’s headquarters—aren’t beyond our reach. Economic literacy isn’t just about understanding numbers; it’s about reclaiming agency in a world where elites have long held the reins. By stepping into the Fed, Trump, for all his polarizing rhetoric, has invited Americans to demand a seat at the table. The next step is equipping them with the knowledge to claim it.
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