Nathan Newman builds the case for public banks: regulation is necessary, but a better solution is to provide alternatives that better support local businesses and communities.
“Los Angeles is considering setting up a local bank and projects that it would save local governments $100 million per year just in banking fees and interest paid by the government itself. As the graphic below highlights, the City has billions it could use to capitalize a local bank and use to support local businesses and communities, while actually generating revenue.
Public banking advocates also focus on the fact that public banking could radically cut the financing costs of borrowing money to build infrastructure projects like mass transit. Analysts estimate public banking could reduce 50% of those financing costs, which could eliminate an estimated $161 billion in annual interest payments that might otherwise substantially be going to infrastructure and human needs.
While the Bank of North Dakota does not encourage individuals to bank with it, California passed AB 1777 in 2021 to develop a plan to offer direct retail banking, including debt cards and direct deposit, through the public banks being established to support the unbanked around the state.”
Continue reading the article at nathannewman.substack.com.