Commonomics USA - Cities, counties, and states can
build a firewall against the incoming administration’s threats, and
create long-term fiscal stability in the chaotic years ahead, by opening
public banks. By lending at low interest and paying that interest
directly back to treasuries, public banks provide governments with both a
source of financing and a regular source of revenue. A city-owned
public bank could turn a profit for the city in its first year by using
the bank to fund its infrastructure with public credit. Not only would
the city avoid the costs of the municipal bond market and the risks of
Wall Street losing its savings in a bad debt swap or other chicanery,
but investment could target the services, economic sectors, or
infrastructure upgrades the city needs most.
Even if public banks didn’t offset losses of federal funding
dollar-for-dollar, they would help sanctuary cities build additional
value-generating and budget-saving projects resulting in long-term
immunity from federal fiscal blackmail.
No comments:
Post a Comment