Letter: The case for a public Bank of Alaska

Last October, the good folks in the Kenai Borough approved creation of two new pieces of paper called a bond for infrastructure projects.

 

One bond issuance for a new cell at the Central Peninsula Landfill and the other a new heating, ventilation and air conditioning system at South Peninsula Hospital (borough owned) in Homer.

Once issued, the bond will be sold to a private bank which will create new money called debt. As always, debt brings interest and the people pay and pay and pay again. Taxes lost to useless interest payments.

If we the people want to build infrastructure and can create a bond, why don’t we create new money called credit. Interest free money for improvements in our community.

One year ago, the city of Santa Fe did a study on just that idea. They found they could save $24 million over seven years. Millions in savings and a reduction in taxes.

As Juneau politicians fight over taxes, let’s give them some direction. Washington has expanded debt in the trillions of dollars and the people pay. Newly created debt money, little of which was directed to the productive part of our economy, infrastructure.

Money creation is not the problem. It is what the new money is used for. Let’s create a public Bank of Alaska and create the credit needed to expand our economy in productive ways. Creating jobs and reducing taxes.

A public Bank of Alaska for Alaska’s economic future.

Ray Southwell

Nikiski

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