How California Could Get Its Money Out of Wall Street
The world’s fifth largest economy could keep the money in a state-owned bank to fund local infrastructure.
California’s pools of idle funds can’t be spent because they must be saved for a “rainy day” or for future pension fund payouts; but they could be deposited or invested in a publicly owned bank, where they could form the deposit base for infrastructure loans. California is now the fifth largest economy in the world, trailing only Germany, Japan, China, and the United States. Germany, China, and other Asian countries are addressing their infrastructure challenges through public infrastructure banks that leverage pools of funds into loans for needed construction.
