Photo courtesy The Hill.
The Hill, Capitol Hill’s influential political newspaper, published an opinion piece this week that endorsing public banks, putting them squarely in the national political spotlight. Eric Heath, senior policy counsel for the Northeast-Midwest Institute, details how state public banks will both deliver affordable green investment and improve states’ financial health:
“[T]his public interest-orientation can allow a state bank to extend financing to projects that other banks would not consider. This is not because green investments are unprofitable, but because their profits slowly accumulate and are widely shared across a community. Furthermore, because members of the community affected by these investments will be the ones governing the bank, there will be a greater impetus to address the pressing environmental concerns of the community.”
“Additionally, the activity of the state bank – which will prioritize investing state assets and extending credit within the state for the benefit of the state – will improve the state economy. … These economic gains will flow back to the state through increased revenues, which can then be reinvested into essential environmental projects. …
“In short, a state bank will free the financial resources needed to fund vital investments in the planet’s future.”