For months now San Diego Mayor Kevin Faulconer has begged for the ending of privately owned utilities—wanting government to run it—like a socialist/communist nation. Due to this I continue to call him the Socialist GOP Mayor of San Diego. Now we find he also wants government to own the banks.
“None of the council’s Republican members have endorsed the idea, but Republican Mayor Kevin Faulconer sent the city’s lobbyist to Sacramento to advocate for AB 857.
He used public tax dollars to end private banks. How does that happen? Private banks pay corporate taxes—government banks do not. Private banks have their own pension systems—government banks use public pension systems—with the tax dollars of families paying the freight.
Faulconer has another chance to say no to Socialism—The Democrats on the city council want a $250,000 expenditure to “study” the use of tax dollars to end privately owned banks. He decision could forever cause his political party to be the same as Bernie Sanders—no, not Democrat, Sanders is a member of the Socialist Party in Vermont.
State legislation prompts San Diego to explore creating a city-owned ‘public bank’
Proposal could generate revenue, boost community investment; but critics say there are risks
By David Garrick, San Diego Union Tribune, 2/2/20 h
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New state legislation allowing cities to establish government-run “public banks” has prompted San Diego officials to begin exploring the idea, including four City Council members who want to spend $250,000 on a feasibility study.
San Diego would join Los Angeles, Oakland and several other cities that have begun analyzing the pros and cons of public banks, which aim to boost city revenue and direct more capital to priorities like affordable housing.
If approved, San Diego would launch its public bank, which could happen as soon as next year, using hundreds of millions of dollars from city reserves that it now keeps at Bank of America.
By cutting out a commercial bank as the middle man, the city could replace the small interest payments it receives from B of A — currently about 1 percent — with interest revenue as high as 20 percent from loans it would make, supporters say.
Just like a traditional bank, the city’s public bank could lend money in the form of property mortgages, capital needed for housing developments or loans to nonprofits and other businesses.
“There’s really something for everyone in this,” said Jeff Olson, a North Park resident spearheading the effort as head of a new organization called PublicBankSD. “We’re going to make a ton of money out of thin air.”
Critics say previous efforts to launch public banks across the nation have been plagued by large start-up costs, profits that don’t materialize for decades and even complete failures in some cases.
They also say public banks get mired in politics, with decisions on loans becoming political debates instead of sound financial evaluations.
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