Public banking would help speed the economic recovery from COVID-19
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A public bank, capitalized with the deposits that cities now park in Wall Street banks, will be a ready source of funds to help people and businesses sustain themselves through these hard times and rebuild. Public banks, like all banks, are able to multiply the impact of their capital by leveraging it up to ten times in loans. They provide the most efficient means for expeditiously deploying funds quickly to help recovery efforts, such as the low-interest loans to small- and medium-sized businesses to help them get back on their feet.
Imagine the difference it will make when a network of public banks exists to partner with the Small Business Administration to help execute the Paycheck Protection Program authorized by Congress. Instead of small businesses being frustrated trying to work with the commercial banks to obtain the loans, and having no place to turn when the agency announced the program ran out of funds on April 16, public banks would be there to stand in the gap.
Rescue funds from the Federal Reserve Bank would be distributed through them, focused on rebuilding communities rather than rebuilding astronomical profits of Wall Street banks. When the loans are repaid, those funds remain in our communities to fund future projects, rather than being siphoned off to financial industry CEOs, shareholders and banking executives. Public banks will invest these funds into making communities more resilient to disasters. They will be obligated to fund affordable housing, minimizing the number of unhoused who are most vulnerable. They will be responsive to community demands for capital improvements for hospitals and community clinics to provide accessible healthcare for daily needs, as well as for disaster preparedness. They can help usher in a cleaner, environmentally responsible future by funding local Green New Deal projects.
The ripple effects of the COVID-19 crisis are likely to last for years, bringing about profound changes to our society. While many may wish for a rapid return to “normal,” let us remember what has been “normal” in the past: People drowning in debt to pay medical bills, fund college educations and simply survive; Global climate crisis glaring at us with rapidly melting glaciers, fires, droughts and tumultuous floods; Rampant numbers of unhoused living on the streets; Thousands at risk of losing their homes to evictions and foreclosures; 40 million Americans living below the poverty line, with 40 percent unable to weather a $400 financial emergency.
Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction
May 16, 2020 at 6:45 PM #316118Ohio BarbarianModerator
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All we have to do is look to North Dakota to see how effective this populist, and fiscally conservative, institution can be.
It is better to vote for what you want and not get it than to vote for what you don't want and get it.--Eugene Debs
If Democrats don’t stand for the people, why should people stand for them?--Jim Hightower
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