Green Party of New Brunswick Policy Proposal: Public Banking
Provincial fiscal management under the current NB Liberal government is advancing on two broad fronts: cutting expenses and increasing tax revenue. With the election of a Liberal federal government, a third approach now appears likely – increased federal money coming to NB through direct allocation to government and through infrastructure investment.
None of these approaches offer a long-term solution to the problem of the province’s structural debt and deficit spending. Neither cutting expenditures nor increasing tax revenue can be employed on a scale that is likely to eliminate, or even reduce, government debt. New federal money will be helpful but temporary. At most, the deficit may be reduced. The debt will remain.
What about growing the NB economy to the extent that increased tax revenue will effectively solve the deficit and debt problem? Despite all the hopeful talk that has gone on for decades about an economic boom in one form or another, there is no good reason to think such a thing is likely to happen, not with the direction in which global commodity markets are now trending.
Read more - PDF format