Public banks could allocate resources as effectively as private banks without the rampant speculation that has crashed this economy three times in twenty years:Because there are no equities to turbocharge with massive fictitious capital, finance becomes delightfully boring—and stable.
Well that's true, that if you destroy the banking system, the banking system won't have any problems. I agree with that.
But that would also ignore the fact that you will harm the reallocation of resources. Meaning, that one thing banks do, is move resources from investors to producers.
Overthrow the Speculators
"Speculators at megabanks or investment firms such as Goldman Sachs are not, in a strict sense, capitalists.
"They do not make money from the means of production.
"Rather, they ignore or rewrite the law — ostensibly put in place to protect the vulnerable from the powerful — to steal from everyone, including their shareholders.
"They are parasites.
"They feed off the carcass of industrial capitalism.
"They produce nothing.
"They make nothing.
"They just manipulate money.
"Speculation in the 17th century was a crime.
"Speculators were hanged.
"We can wrest back control of our economy, and finally our political system, from corporate speculators only by building local movements that decentralize economic power through the creation of hundreds of publicly owned state, county and city banks."
Public banks could allocate resources as effectively as private banks without the rampant speculation that has crashed this economy three times in twenty years:
Exactly!
Just imagine how great a Public Bank of Chicago would do......
There wouldn't be any speculation as far as the politically connected loans with taxpayer dollars that would occur. These loans would default at a massive rate. No chance for these loans to inflate a speculative bubble leading to a crash.
"Speculation in the 17th century was a crime.
And in the Soviet Union much more recently. How'd that work out
for the Soviet Union. Their economy bigger than ours yet?
"We can wrest back control of our economy, and finally our political system, from corporate speculators
Right! Political speculators are much better than corporate speculators. DURR.
local movements that decentralize economic power through the creation of hundreds of publicly owned state, county and city banks."
If at first you don't succeed, fail, fail, fail, fail, fail, fail again.