Posted by:
John Duda
New report proposes community-focused overhaul of US financial system
The New Economy Working Group, a network of policy activists and organizations convened by DC’s Institute for Policy Studies has just published a comprehensive report advocating for a far-reaching transformation of the American financial system. The report, How to Liberate America from Wall Street Rule, examines the operation of the traditional banking system in the United States in the wake of the financial crisis that began in 2008, and argues that a reorientation of the financial system towards local communities, local businesses, and local needs—Main Street instead of Wall Street—is increasingly necessary.
The kinds of new financial institutions the report calls for are key components of any broad community wealth building strategy. It mentions a few examples, including the Evergreen Cooperative Development Fund, which we helped establish alongside the Cleveland Foundation in order to finance the growing network of worker owned green businesses that make up the Evergreen Cooperatives. For a more comprehensive examination of existing models and best practices for building a community-oriented financial system, check out our collection of resources on Community Development Financial Institutions (CDFIs) and on state and local investment strategies Another relevant resource is the Public Banking Institute site, which tracks the growing movement to replicate successful projects like the Bank of North Dakota.
Read the report online | More information about the report | Blog post by the report’s principal author, David Korten