Most Popular Choices
Share on Facebook 130 Printer Friendly Page More Sharing
Exclusive to OpEd News:
General News    H1'ed 2/26/16

A Public Bank in Philadelphia

By       (Page 1 of 2 pages)   4 comments
Follow Me on Twitter     Message Mike Krauss
Become a Fan
  (8 fans)


(Image by Public Banking Institute)   Details   DMCA

A new idea, a big idea was set in motion on Monday for the City of Philadelphia. Following a unanimous vote by City Council on a resolution introduced by Council members Curtis Jones, Jr., Derek Green and Helen Gym, a hearing was held to begin the process of forming a public bank for the city, modeled on the hugely successful Bank of North Dakota (BND).

The City Council resolution said in part:

"The creation of a public bank offers the possibility of achieving multiple policy objectives, including stimulating economic development, spurring job creation, reducing municipal debt service, and expanding the tax base, through direct, long-term local lending at below-market rates."

Similar proposals are now being discussed in more than three dozen city councils, county commissions and state legislatures across the nation. Only weeks before, the city of Santa Fe, NM and an independent citizens committee each released a study affirming the benefits of such a bank and supporting its creation for that city.

The Philadelphia proposal is supported by a broad coalition of civic, business and neighborhood organizations whose members testified before City Council.

Anlin Wang, a recent graduate of the Temple University Fox School of Business, spoke of his perspective as a Millennial who now lives and works in Philadelphia, saying that a public bank "can provide the affordable credit to help start-ups, businesses and entrepreneurs; and the affordable credit for people to buy homes in their neighborhoods and not be priced out by the so-called 'gentrification'."

Wang warned that, "without serious action, Philadelphia risks becoming an 'Apartheid City,' that leaves countless Philadelphians locked out of the future of their own city."

Veteran bankers Jeffry D. Beck and Dr. Emma C. Chappell cited the loss of community banks in the city and pointed to the success of the Bank of North Dakota in strengthening the local banking industry in that state to compete with the mega banks of Wall Street.

They pointed out that a public bank partners with local financial institutions, working within their existing underwriting standards to increase the supply of affordable credit in the local economy, create jobs and build the tax base.

The City Council resolution also noted that from their profits, public banks provide an annual and sustainable source of non tax revenue to the general fund of the people whose government created the bank.

The Rev. Carol Duncan, speaking on behalf of the interfaith group, Philadelphians Organized to Witness, Empower and Rebuild (POWER) suggested one mission of the proposed bank should be to support the public schools with its annual profits.

Public banks have a low cost business model, different than commercial banks: no branches, tellers, mega salaries, ATMs or costly retail advertising. These saved cost, said Pennsylvania Project Director, Frank Nuessle, "Fall to the bottom line. Profits are substantial and will grow over time."

In one recent year alone, the BND contributed $94 million of non tax revenue to the state's general fund.

But an immediate impact of a public bank that many City Council members found attractive is the reduction of public debt and the resulting debt service paid by taxpayers, allowing more of municipal budgets to fund productive public purposes -- like schools, infrastructure, health and public security.

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

News 5   Inspiring 4   Must Read 3  
Rate It | View Ratings

Mike Krauss Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Author of the forthcoming novel "Pursuits of Happiness," a director of the Public Banking Institute and chairman of the Pennsylvania Project. Mike is an international transportation and logisics executive with broad experience in U.S. government (more...)
 

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Follow Me on Twitter     Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The crash of 2016: Wall Street gets ready

Pennsylvania: broke, unless you count the $91 billion

A Public Bank in Philadelphia

The Coming Crash

Lou Dobbs: Overpopulation threatens all that makes America great

Public Banks: helping workers by helping people

To View Comments or Join the Conversation:

Tell A Friend