Public banking goes to pot

Americans don’t save enough - in 2005, Americans’ personal savings rate was negative for the first time since the Great Depression ─ instead of piling up savings, we are piling up debt. Two behavioral economics columns on how switching signup for a 401K plan from opt-in (say yes to be enrolled) to opt-out (say no to be un-enrolled) dramatically raises enrollment rates.

In many poor countries, counterfeit medicines are an enormous problem. A quarter-million malaria deaths each year might be prevented if the patients were treated with real drugs instead of fake ones.

In the wake of Hurricane Sandy, necessity has bred an interesting kind of financial invention for the New York MTA: the world’s first “catastrophe” bond - a reinsurance for the insurer - designed to protect public transportation infrastructure, specifically against storm surge. These bonds privatize risk for public gain, creating a kind of tool that may protect economic development against all kinds of natural and man-made disasters around the world.

In Uruguay, illegality and stigma surrounding abortions resulted in problems with maternal mortality rates. Utilizing a unique solution, a medical protocol was created to provide initial information and followup care to women seeking abortions.

Too often socially useful businesses end up failing because they get ahead of themselves and end up not being profitable. Companies now can select from an 'opportunity map' of ventures that serve the poorest individuals, and are more likely to be profitable and sustainable.

An increasingly popular way to attract foreign direct investment is to let the world’s wealthiest trade cash and property investments for citizenship. The $2 billion-a-year industry allows the ultra-rich to buy passports that permit visa-free travel to nearly the entire world, often with no residency requirements. Highly controversial, the industry is marked by a lack of transparency and concerns about what happens to civic ties when citizenship can be bought and sold.

A collaborative funding organization called the Runway Project gives loans to primarily Black entrepreneurs in the Oakland area. The initiative aims to address racial disparities in startup capital by reducing the financial risk of starting a business. The program also includes personalized support as a "wrap around" approach to the lending process.

A solar workgroup in Virginia is inviting developers to present information on the best ways to build solar and battery storage projects for the region; a new approach they are taking after previous failures in getting solar projects off the ground. Despite a lack of funding and local developers in the area, solar advocates are hopeful that the passage of a new energy law in the Commonwealth could be an economic incentive for commercial-scale solar projects.

Black banks have been held up by leaders and celebrities in the community as a way to end Black poverty. Previous efforts have been made in the 1960s when Black banks gave loans to community members after being denied home loans from white banks. But those loans lost money when housing values declined as a result of redlining policies that damaged public schools. Black banking therefore was not the answer to ending Black poverty and bridging the gap between white and black wealth. One law professor believes the answer lies in public banking which is funded by tax revenue and acts as a public utility.

Este reportaje cuenta y explica la solución energética de Ticino, un pueblo de la provincia argentina de Córdoba. Quemando biomasa (cáscara de maní), la manicera de la localidad, que es también la empresa más grande del lugar, genera energía eléctrica que vende al Estado para abastecer al pueblo y a zonas vecinas. Esta solución beneficia a cientos de familias y permitió que durante el gran apagón nacional de 2019, Ticino continuara con luz.