The yokels who populate the Bossier Parish Police Jury got sucked in, and maybe more of Louisiana’s local government will follow their lead in endorsing a deal that’s good for politicians but bad for taxpayers.
Last week, the Jury resolved, unanimously with one juror absent, to urge creation of a national infrastructure bank by Congress. The idea can trace its roots to the controversial Bank of the United States nearly two centuries ago, and the idea has kicked around Congress in earnest since the start of the century.
This institution, following recent legislation and as pitched by its leading interest group backer, would be a creation of Congress with directors appointed by it and $5 trillion to lend. Its capital would involve swapping $500 billion in Treasury debt with the private sector for equity in the bank, the proceeds from then would be loaned to state and local governments at low interest rates. Interest payments would pay off the equity dividends and create a reserve for bad loans, plus administrative expenses. The principal would be loaned again and again.