Public Bank Implementation Board Testimony 4/5/2022
NJ needs to focus its public bank efforts on equity and racial justice
My testimony to the Public Bank Implementation Board at their first public hearing on created a Public Bank of New Jersey. Below is my written testimony which mostly reflects my 2 minutes of verbal testimony with a few more details added and the Tweet those stats were pulled from.
Good afternoon, thank you to the board and those working on this project, and thank you for hosting this forum.
My name is Matt Dragon, I live in West Orange, and I’m a Co-Chair of the Our Revolution Essex County chapter.
Governor Murphy stated that he wanted a bank that is owned by the citizens of the state of New Jersey That’s what we want too. We are concerned with an incremental and intermediate step of a bridge bank or social impact fund because it would not actually fundamentally change the financial calculus for counties, municipalities, or residents. A bridge bank, or social impact fund would not be as well equipped to deal with the racial disparities that have created New Jersey’s extreme inequity in both individual and household wealth.
Black and Latino families in New Jersey have median net wealth of less than $30,000. White families median net wealth is over ten times that. Specifically, median net wealth is $322,500 for white families, $26,100 for Latino families, and only $17,700 for Black families. To say that another way, it would take the wealth of 18 Black families to reach the wealth of one white family.
That speaks to the racist history of our country, and our state. The history of slavery runs through New Jersey and the Wall Street banks that underwrote that inhumane system, exploiting Black and brown bodies for profit, still hold our deposits today.
We have an opportunity to sever those ties. To work with Community Banks and Credit Unions to better serve their customers, our residents, and improve the financial health and invest in New Jersey and our counties and cities. Please ensure that you represent the desire of residents to have a real, North Dakota style, State Bank.
It’s what Governor Murphy campaigned on and it’s what New Jersey needs to address our racial and economic equity crisis.
Thank you.
Newsletter image by Hannes Wolf on Unsplash