A consideration of public banking
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
Where is your money? Well…okay…if you actually had some, where would you put it? Why? Wherever you store your monetary wealth, do you gain benefit from allowing that storage solution to reliably insure your financial security? Can you trust that solution to work in your best interest?
Economic Inequality: Part 3
In June of 2015, Citigroup, JPMorgan Chase, and Barclays, among other Libor-rigging giants, pleaded guilty to felony charges related to the [Libor] conspiracy and greed to pay more than $2.5 billion in criminal fines to U.S. regulators.
(AP Photo / Edouard H.R. Gluck)
Representing only a single instance of a commonplace practice played out the world over, this corporate criminality instigated the outage of Craig Brandt, an attorney from Oakland, California. He set out to enact an audacious plan. With other individuals, Mr. Brandt endeavored to have the Oakland City Council “take radical action to combat plutocracy, inequality and financial dislocation”. Mr. Brandt wanted to create a city-owned “public bank”.
Recent posts on this blog have explored economic inequality and its ramifications. The post this week continues this series, beginning to focus on potential solutions to what some see as a looming economic catastrophe. As Part 3 our Economic Inequality series, consider this article by Jimmy Tobias: “What if People Owned the Banks Instead of Wall Street?”
Economic Inequality: Part 2
Have you ever heard of a “GINI score”? This “score” is a statistical coefficient used in economics (don’t run away, this gets better). A GINI score measures wealth distribution in a designated area (like a country). Cutting to the chase, the score has been used to predict revolutions. Apples and oranges? Not really. The theory goes like this: the greater the GINI score operative in any given society (that is, the higher the measure of inequality), the greater the likelihood of a violent revolution occurring in that society. The United States has one of the highest GINI scores in the history of the world!
Economic Inequality: Part 1
“The triumph of globalization and market capitalism has improved living standard of billions [of people] while concentrating billions [of dollars] among the few.”
~Richard Freeman, Harvard Economist
Like most things, we maintain vastly differing views about economic inequality. Some of us believe such inequality is wrong (not “Good”), particularly since (as these folks believe) such disparity comes as a result of greed and unfairness. Other folks believe such inequality is inevitable and, therefore, assume nothing should be done to prevent it. Regardless of the cause or need for prevention, various research indicates that long term economic inequality in a society comes at a high cost. While the costs are many, they basically fall into two main categories: psycho-physical deterioration and sociopolitical upheaval.