We have learned that spending is more important than saving money when countries are poor – it is the productivity that needs to increase, you can not take the last piece of bread from a hungry man, you need to help him become able to get more bread. Public banks risk public money but don’t lend enough of it and when the shit hits the fan it is again public money that bails them out. However, when business is good, public does not get any dividends.
Public banks should raise the minimum wage in countries by directly transferring a certain amount of money to those with jobs and minimal income. They should raise the minimum income directly. The cost/benefit would be great because if we wanted to have the government do that somehow, any country, this is guaranteed, would have spend at least twice more because they would have to finance their people to do it. And their people either don’t have the time or don’t know how to do it. That’s why the banks should.
This would help boost SME’s and private expenditures much faster and much more efficiently than any loans, grants ect..