Why are California Cities Developing Municipal Banks When the State has So Much Money?
Depending on who and when you ask, the State of California has the 5th or 6th largest economy in the world.
And emerging from the Great Recession, Governor Jerry Brown has managed to combine brilliance with amazing luck to create a massive budget surplus of $6.1 Billion.
In 2018, into this massive economy that's operating comfortably in the black jumps the newly legalized cannabis industry (well, the medicinal side was legalized 20 years ago and the recreational side just came online in 2018, but you knew that) that industry titan ArcView predicts will reach $5.8 billion in revenues by 2021.
Small hiccup coming... due to the federal prohibition of cannabis, and the resulting allergy to cannabis funds by banks (let's let the British explain this nonsense) it is conceivable that California's cannabis industry boon will lead to $5.8 Billion IN CASH MONEY floating around our fair streets. How's that for public safety?
When we became alarmed by the enormity of this issue a few years ago, Fiona Ma was already on the case as early as 2015. (We feel strongly that Ma's vision and leadership of and solution to the billions-in-cannabis-cash issue must be acknowledged loudly and clearly as others try to take the lead).
Given all the money in California and all the intellectual firepower the state can bring, why are cities going it alone on creating a public bank? We are asking because San Francisco, Los Angeles, Oakland have all invested time and money to develop them.
We at the American Cannabis Report are becoming increasingly concerned about the lack of focus on the potentially massive and positive cannabis industry in the City of Los Angeles. But on the issue of a public bank as a solution to the cash problem, it's time for the State to step it up.
We need State of California to show leadership, plain and simple. Let's get it together, people.