A public bank would be risky, expensive and a potential waste of tax dollars
Editorial in the Los Angeles Times, May 27, 2019
“Proponents of public banks are certainly persistent. Study after study has thrown cold water on the idea of establishing a government-owned banking system that, in theory, would let public agencies lend out taxpayer dollars at lower interest rates than commercial banks and yield greater benefit for their communities.
But in practice, no state or local government has established a public bank in 100 years, despite the recent surge of interest and dissatisfaction with commercial banks after the financial crisis a decade ago. Feasibility studies have repeatedly found that a public bank would be too expensive for government agencies and too risky for taxpayers, while also delivering questionable value to the community. Around the country, they’ve been tried — and in almost every case, they’ve failed or shut down.”
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