By: David Krikorian
The global ﬁnancial crisis continues to inﬂict economic damage to the State of Ohio. Despite massive monetary inﬂation by the Federal Reserve via the money-center banking system, our economy continues to stagnate. The decline in overall lending by money-center banks is a major drag on economic activity, particularly in the small business sector.
When credit started drying up in 2008, many larger Ohio banks called in their loans and lines of credit with companies they had been lending to for years. The resulting loss of credit, despite historically low interest rates, culminated in lower tax revenues and higher unemployment, straining state and local ﬁnances.
A Public Bank of Ohio (PBO) would alleviate the squeeze on credit, greasing the gears of capitalism for small business, the engine of economic growth. Tax receipts would increase, without raising tax rates, while unemployment would decrease. Businesses would feel conﬁdent in hiring workers if they had reliable access to credit from a banking system that won’t put the squeeze on them again in the future.
A Public Bank would generate substantial income for the state and help insulate Ohio’s economy from global ﬁnancial volatility and Wall Street greed.
PBO Proposal- Read on