State-owned Banks Are A Win-win For All

You need to know this. In 2014, the state Bank of North Dakota was more profitable than Goldman Sachs and J.P. Morgan Chase. And, that's why every state should own their own depository institution.

Most people attributed the Bank of North Dakota's success with the oil boom in that region, but their latest report shows that last year was their most profitable year ever, despite the fact that their state's oil boom has become an oil bust.

In fact, for each of the last 12 years, the Bank of North Dakota has outperformed each previous year, and their return on investment last year topped 18 percent.

While the rest of the banking industry was dealing with the turmoil of the last financial crash, the state-owned depository bank was propping up their economy.

And, once again, as North Dakota's economy suffers because of the decline in oil prices, their state-owned bank has helped fund 300 new local businesses, which means a ton of local jobs.

If other states had their own banks, they could help stimulate their own local economies when times get tough, and they can do so without handing over millions in profit to Wall Street.

For example, if the state of California created their own state bank, they could save billions on fees and interest currently going to the big banks.

And, they could better protect state pension funds and finance modern infrastructure projects like a bullet train or new green energy.

Rather than simply throwing money away in the form of interest and fees, states could protect depositors, boost local economies, and fund the new infrastructure needed for the modern era.

North Dakota has proven that state-owned banks are a win-win for all of us, and more states should follow their example.

Comments

dtodd560's picture
dtodd560 6 years 28 weeks ago
#1

What is going to be the best way to get Illinois to do this?

Johnnie Dorman's picture
Johnnie Dorman 6 years 28 weeks ago
#2

I've been saying for months that the states where cannabis has been legalized need to have their own state banks in order to avoid the problem of cannabis businesses not being able to bank thier profits because of the ill begotten federal schedule 1 cannabis classification.

So I totally agree with the proposisition of state owned banks. It is one good way to keep banks from becoming too big and also for more competition to exist where banks are concerned.

Ratnab's picture
Ratnab 6 years 28 weeks ago
#3

I agree there should be state owned banks and the United States should have a federal bank which is actually run by the federal government. I grew up in North Dakota, a great place to live. as long as you can handle the winters.

heirloomerfarm's picture
heirloomerfarm 6 years 28 weeks ago
#4

Sounds like a great idea to me, Thom

cccccttttt 6 years 28 weeks ago
#5

More information on Public Banks at

http://www.publicbankinginstitute.org/

ct

bhuhner's picture
bhuhner 6 years 28 weeks ago
#6

I was born and raised in ND and lived there for 70 years. The Bank was created by the NPL (non-partisan league) in response private bank abuse of farmers after the crash of 1929. I guess today it would be called "socialism". They also created The State Mill and Elevator to provide a market for their grain. They have both been succesfull which to me proves that private companies cannot always do things better than the government. Eg: Medicare, Social Security.

Thom's Blog Is On the Move

Hello All

Today, we are closing Thom's blog in this space and moving to a new home.

Please follow us across to hartmannreport.com - this will be the only place going forward to read Thom's blog posts and articles.

From The Thom Hartmann Reader:
"Thom Hartmann seeks out interesting subjects from such disparate outposts of curiosity that you have to wonder whether or not he uncovered them or they selected him."
Leonardo DiCaprio, actor, producer, and environmental activist
From Unequal Protection, 2nd Edition:
"Beneath the success and rise of American enterprise is an untold history that is antithetical to every value Americans hold dear. This is a seminal work, a godsend really, a clear message to every citizen about the need to reform our country, laws, and companies."
Paul Hawken, coauthor of Natural Capitalism and author of The Ecology of Commerce
From Screwed:
"Thom Hartmann’s book explains in simple language and with concrete research the details of the Neo-con’s war against the American middle class. It proves what many have intuited and serves to remind us that without a healthy, employed, and vital middle class, America is no more than the richest Third World country on the planet."
Peter Coyote, Actor and author of Sleeping Where I Fall