More elected officials every week are seeing the potential of public banking to address budgetary woes. The latest is Connecticut State Representative Josh Elliott, who writes in the CT Mirror of how the century old Bank of North Dakota has “spun off $300 million in revenue to the state over the last decade alone [now $360 million since 2005] while also providing some significant functions. ...
“We need to implement a public bank in Connecticut because it allows for consistent and cheap lending. It works both for the state as an institution, and it works for its residents.”
Rep. Elliott continues:
“One big problem we experienced during the Great Recession was large banks buying up smaller banks with the public money that bailed them out. Instead of increasing lending, they cemented their hold on the banking system. Small business had a hard time getting short term, low interest loans to weather the storm and went out of business.
“The mission of a Connecticut public bank would be to help small business and keep local economies humming, even in a downturn. With the addition of providing short-term micro loans – or business development grants – we would have a way to help citizens grow independent wealth – something we are sorely missing in Connecticut as our middle class gets gutted. …
“We should be continuously investing every spare dollar in ourselves, no matter if the economy is up or down. It is the only way to truly bounce back from the last recession and begin growing our economy again.”
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