Economist Farid A. Khavari, Democratic candidate for Florida Governor, announced his economic plan to revitalize Florida’s economy, replace over 700,000 lost jobs, stabilize the housing market, and regain over $50 billion in losses suffered by the State Board of Administration (SBA) in the past two years, without higher taxes. “This plan will put hundreds of thousands of people back to work as fast as possible,” said Khavari.
A key part of Khavari’s plan is creating The Bank of the State of Florida (BSF). “Using the fractional reserve regulations that govern all banks, we can earn billions per year for Florida’s treasury, while saving thousands of dollars per year for Florida homeowners,” Khavari said. “After we cover the $50 billion in SBA losses, we can reduce taxes.”
“For $100 in deposits, a bank can create $900 in new money by making loans,” Khavari said. “So, the BSF can pay 6% for CDs, and make mortgage loans at 2%. For $6 per year in interest paid out, the BSF can earn $18 by lending $900 at 2% for mortgages.
“The BSF can be started at no cost to taxpayers, and will be a permanent engine driving Florida’s economy,” Khavari said. “We can refinance state and local projects at 3%, saving taxpayers billions and balancing state and local budgets without higher taxes. We can make Florida immune to future recessions.”
The state would earn $15,000 per $100,000 of mortgage, at a cost of about $1,700, while the homeowner would save $88,000 in interest and pay for the home 15 years sooner, according to Khavari. “Earnings on credit cards with 6% interest would be much greater, while consumers would pay off debt years sooner with big savings,” Khavari added.
“Our bank will save people about seven years of their pay over the course of 30 years, just on interest costs,” Khavari said. “We should work to support ourselves and our families, not the banks. Creating this bank is not Socialism, it is General Capitalism, which benefits everyone. What we have now, Elite Capitalism, makes everyone work for a few greedy fat cats.”
Currently, North Dakota is the only state that owns a bank. North Dakota has a growing economy and a budget surplus, in stark contrast to Florida and most other states.
Farid A. Khavari, Ph.D., is the author of several books, including Environomics: The Economics of Environmentally Safe Prosperity. His latest book, Toward a Zero-Cost Economy, is available for free download at the website. This is his first run for any office. “I’m an economist, not a politician,” Khavari said. “Politicians caused the mess we are in, along with banks and Wall Street. This election is not about politics, it’s about economics.”
Details of Khavari’s plan are here.