Cancel Wall Street

Saqib Bhatti and Brittany Alston of the Action Center on Race & the Economy (ACRE) argue in a new report that the enormously expensive finance system our states and cities must use to raise money is irreparably broken by design. The report estimates the potential annual savings for a long list of municipalities and states if those expensive bond deals were replaced with 0% loans from the Federal Reserve. The authors continue:

“Full recovery requires robust public investment in our public goods and services. Instead of making more cuts to critical services in our public budgets, it’s time we look to cutting the exorbitant profits Wall Street makes from our municipalities. … Interest payments on municipal debt transfer more than $160 billion every year from taxpayers to wealthy investors and banks on Wall Street. … The Federal Reserve should offer state and local governments long-term, zero-cost loans.”

[Read the report]