How would a publicly-owned bank be different from a privately-owned one?

First, the mission of the publicly-owned bank is to serve the public interest, while that of the privately-owned bank is to serve its shareholders by delivering profits.

Second, the profits of the publicly-owned bank would be returned to the public, with the benefit of increased public services and reduced taxes. Conversely, privately-owned banks increase taxpayer costs through compounding interest, and the loss of other benefits that would be derived if the publicly owned bank were leveraging public funds for local needs, such as the effect such projects have on the economy’s of local communities.

Third, the employees of a publicly-owned bank are public servants earning civil service wages, versus the millions in salaries and bonuses paid at private banks; so, with publicly owned banks, the public interest is not sacrificed to short term gains of a few.

Enhanced by Zemanta
This entry was posted in Public Banking Institute and tagged , , , . Bookmark the permalink.