doom loop

New on Substack | Ellen Brown on Tackling California’s Budget Crisis: Raise Taxes, Cut Programs, or Form a Bank?

We’ve cross-posted the latest article from PBI Co-Chair Ellen Brown on our Substack. As the state’s budget deadline of June 15 looms, Ellen examines an alternative solution to California’s potentially catastrophic “Doom Loop” $73 billion deficit:

“In 2022, the state of California celebrated a record budget surplus of $97.5 billion. Two years later, according to the Legislative Analyst’s Office, this surplus has plummeted to a record budget deficit of $73 billion. Balancing the budget will be challenging. … The usual solutions are to cut programs or raise taxes, but both approaches are facing an uphill battle. …

“A third possibility might be to increase the income tax base and state income by stimulating the economy with a state-owned depository bank. … California has an Infrastructure and Development Bank, which is already capitalized and has an established track record of prudent and productive lending, but it is not a depository bank and its reach is small. Transforming it into a depository bank would be fairly uncomplicated and could substantially increase its reach.”

[Read this latest Substack]

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