Private Banks Profit from Pandemic Measures in the U.S. and Canada

Paying the Big Banks to Do Government Work

During the economic crisis and even during "normal" times governments are paying the big banks to do public sector work as a matter of course. The banks and other financial institutions and their rich owners profit handsomely from fees for administering government borrowing and other tasks. None of the work they do for governments, including the lending to them of money, could rightly be considered something in the realm of private enterprise but rather "legal" corruption to pay the rich which is in fact criminal in nature.

In the imperialist world, powerful private interests have usurped the state and profit at the expense of the people. Governments are used by these powerful private interests to borrow from the rich to pay the rich and in the process the private banks of the rich seize the role of administering the scams for which they are paid fat fees by the very same governments that borrow from the rich to pay the rich.

Paying the big private banks to do work that in fact should belong in the public service is a major problem facing the people and their society. It is a call for the people to organize for renewal and set a new direction for the economy. Private banks have long since seized functions that belong in the public sector. They escape the control of a public authority which no longer exists, including when it comes to the issuing of new money and deciding which projects merit investments.

The private financial institutions expropriate interest profit from the economy greatly weakening any development that favours the people and blocking a path forward to a new pro-social direction for the economy and governance. They take money out of the economy and invest it globally according to their narrow private interests. No social or natural problem can be resolved when the public finances are robbed in this manner.

In the modern era, banking itself should be a public service organized for the betterment of all and nation-building not parasitic private expropriation of social wealth the working people produce and need. Functions such as banking and investing in development projects, infrastructure and in the basic sectors should be under public control, with new forms that allow the people to decide the direction of the economy and to participate in making the decisions on major investments and development and other matters of concern related to the well-being of the people and nation-building. The necessity has arisen to bring public finances under the control of the people and accountable to the public.

This article was published in

Volume 50 Number 27 - July 25, 2020

Article Link:
Private Banks Profit from Pandemic Measures in the U.S. and Canada: Paying the Big Banks to Do Government Work


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