BY ELLEN BROWN
uring the bank’s five-year start-up phase, the time projected to achieve a full lending portfolio. The authors concluded:
“In just its five-year start-up phase, a New York City public bank has the potential to create thousands of jobs, while constructing and renovating nearly 20,000 units of affordable housing, directing over a billion dollars to climate infrastructure investments, and expanding the capacity of the city’s CDFI community banks and credit unions to meet the needs of low- and middle-income New Yorkers. …
“By partnering with CDFI banks and credit unions and other responsible lenders, the public bank could enable these institutions to increase their lending by over $5.8 billion. Besides financing affordable housing and community development and climate infrastructure, the public bank’s loans would allow CDFIs to increase their capacity with respect to mortgage and consumer lending. … Loans for mortgages and small businesses will build wealth and ensure that a larger share of the City’s money keeps circulating in New York’s working-class communities. Public bank lending of $4.55 billion is estimated to create approximately 70,600 jobs in its start-up phase.”
Other states pursuing legislation in 2023 involving the establishment of public banks include California, Oregon, Washington State, New Mexico, Massachusetts, Pennsylvania and New Hampshire. At the federal level, a much needed solution to the infrastructure crisis is a national infrastructure bank, proposed in HR 4052. We have faced these crises before and have come out the stronger for them. Alexander Hamilton dealt with what appeared to be an insurmountable sovereign debt crisis by establishing the First Bank of the United States as an infrastructure and development bank in 1791. That model was followed by Roosevelt’s government in pulling the country out of the 1930s Great Depression, and it can help put our economy on a more solid footing today.
This article was first posted on ScheerPost.
Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling Web of Debt. Her latest book, The Public Bank Solution, explores successful public banking models historically and globally. Her 300+ blog articles are at EllenBrown.com.
