VIDEO: The impact of a Public Bank on NJ with Stockton professor, Dr. Deborah Figart

Former PBI Chair Walt McRee interviews Stockton University Distinguished Professor of Economics, Dr. Deborah Figart to discuss her recent study on the impact of a Public Bank for New Jersey. Dr. Figart also penned a related opinion piece this week for the NJ Star-Ledger.

Dr. Figart's basic message: a Public Bank gets NEW money into the economy; it doesn't just shift money from one pocket to another. She brings up that NJ has a great deal of money in various accounts in Wells Fargo, being used for loans that are not going to NJ. She says for every $1 spent on infrastructure, $2 in Gross State Product is created — it’s a standard econ formula.

Dr. Figart:

A Public Bank would contribute enormously to funding economic development needs throughout America and in the state of New Jersey. … It’s very difficult to borrow money for infrastructure and if states and municipalities could find a way to raise funds through a public bank and to borrow at lower interest rates than typically what Wall Street lends money for, I think that we could do a lot to generate state economic growth and municipal economic growth and redevelopment in the U.S.”

 

In a related article in the NJ Star-Ledger, Figart writes:

“In analyzing the economic impact of a public bank, the question is: How much new output and new earnings are created for every dollar of new lending in an economy? Any new lending from the public bank would have a multiplier effect. … It is about leveraging the power of a lending dollar. … The state also could save money in lower interest costs; a state bank might charge only half of what commercial financial institutions charge for state bonds and loans.”

[Watch video]

[Read the full article]


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