Econintersect: In a part of a recent broadcast of Ellen Brown’s Progressive Radio Network program “It’s Our Money”, a provocative data point was presented. Following a discussion by Ellen of recent news about the nature of banking and an interview by Ellen of Laura Wells (starting at 7:30), Green Party Candidate for California State Treasurer, co-host Walt McRee interviewed (starting at 52:00) progressive political activist Lauren Steiner about the banking expenses of Los Angeles. Audio is available at end of this article.
Lauren Steiner cites a report prepared by the Fix LA Coalition (an organization of labor unions) which revealed that fees paid by Los Angeles to banks exceed the amount spent on the streets.
The report also says that LA has more than $100 million a year flowing through financial institutions which essentially allows those firms to benefit from the “float” between time of deposits and time of expenditures.
From the Comprehensive Annual Financial Report (City of Los Angeles, Fiscal Year Ended 30 June 2013) it is estimated that the debt service interest paid by the city and all its independent departments is approximately $780 million per year. That comprises about 19% of the total expenditures for the city itself.
Adding the $200 million in fees paid annually, the private sector is compensated by the City of Los Angeles by almost $1 trillion for financial services and debt service interest, much of which could be provided by a public bank, saving dollars now going to the financial sector of the private economy. This could produce a combination of a reduction in taxes and improvement in infrastructure and services for the city.
- It’s Our Money with Ellen Brown: An Electoral Lock-Out of Political Challengers Helps Guarantee Wall Street Profits – 05/07/14 (Progressive Radio Network)
- LA Spends More on Wall Street than Our Streets (Fix LA Coalition, 24 March 2014)
- Comprehensive Annual Financial Report (Los Angeles Unified School District, Fiscal Year Ended June 30, 2013)
- Adopted Annual Budget, Fiscal Year 2013-2014 (City of Los Angeles Harbor Department, 06 June 2013)
- Comprehensive Annual Financial Report (City of Los Angeles, Fiscal Year Ended 30 June 2013)