State bank would help solve Alaska’s fiscal problems, prepare for crises

Naknek Lake, Katmai National Park, Alaska

Naknek Lake, Katmai National Park, Alaska. Photo by Paxson Woelber

 

Alaska lawmakers and advocates continue their work on legislation introduced last year to create the Alaska State Bank. Advocate Charles Duncan writes an excellent opinion piece in Anchorage Daily News challenging the customary assumptions of political leaders to explain how a publicly-owned state bank would give the state the solution for current budget problems and the expected crises to come:

“State income taxes are not the solution to our budgetary problem for the same reasons that cutting the Permanent Fund dividend is a bad idea. Income taxes and PFD cuts suppress the volume of money circulating in Alaska’s economy, do not address the root of our economic problem and do not prepare us for the next financial crisis.”

“Understanding some of the basics of monetary policy opens up the discussion to include new workable solutions that shift many investments that are currently in the state budget to the more efficient loan leveraging and loan origination potential of a state bank.”

[Read the full article]

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