Gillman 'betrays his own ignorance'
Jason Gillman, Jr.’s column “Exploiting Ignorance,” in the April 7 issue opposes gubernatorial candidate Virg Bernero’s call for a state-owned bank.
But Gillman betrays his own ignorance when he states that “If a bank thinks it won’t benefit from making a loan . . . , the loan won’t be written.”
This is a nice theory, but has no relation to reality.
What is the current worldwide recession due to but banks making ruinous loans that wrecked both the banks and the economy, however much they may have benefitted individual bankers?
Moreover, there are times when loans should be made for the public good, even if they will not be financially beneficial, and this almost always requires either a publicly owned bank or the equivalent.
Also, the trend toward mergers and buyouts of many local banks means that there is no guarantee that local funds will be locally banked unless the bank is publicly owned and not subject to a takeover.
There are legitimate arguments against a state-owned bank, however, including the possibility that the bank will make loans neither for profit nor for the general public good, but for the benefit of politically well-connected narrow special interests.
Gillman’s column is an example of how legitimate political debate has become almost impossible in this country.
Mark Herman Mount Pleasant resident
