Understanding Public Banking for Vermont's Economy
Explore the concept and history of public banking in Vermont, with a focus on the benefits it can bring to the local economy through increased investments and job creation. Learn about the State Bank, its impact on various sectors like business, education, and housing, and the potential economic growth it can generate for the state. Discover the origins of public banking in the U.S. and how it has evolved over time to support community development and financial stability.
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Presentation Transcript
Vermonters for a New Economy presents Public Banking for Vermont
State Bank Public Bank We have a State Bank already. Loans and investment are made for business, students, housing, and municipal infrastructure. VEDA VSAC VHFA Bond Bank Source of income for State of Vermont. Keep Vermont s money in Vermont.
If VEDA were a real bank Capital could be leveraged 10 to 1. Compare this to a revolving fund, where $100 can be lent only once and then must be repaid before relending. $100 invested as capital in a bank can back $1,000 in loans.
The original U.S. public bank model was in colonial Pennsylvania in Benjamin Franklin s day. Source: Ellen Brown, Public Banking Institute
In 1806, the Vermont legislature crated a State Bank Governor Tichenor was initially opposed to the idea of a bank in VT and let the legislature know his feelings about banks: Banks, by facilitating enterprises both hazardous and unjustifiable, are natural sources of all that class of vices which arise from the gambling system and which cannot fail to act as sure and fatal, though slow, poisons to the republic in which they exist.
Economic Impacts If deposits of state cash funds were used for VEDA and VHFA loans, $236.2 million in public bank lending could result in: 2,535 new jobs $192 million in value added (Gross State Product) $342 million increase in state output
