By Greg Wendt
An excellent article was just written called “Reviving Main Street – A Call for Public Banks” highlighting the opportunity states across America have to restore a healthy economy – simply by creating a state bank.
Surprisingly, North Dakota is the only state in the union which has created its own bank.
The article highlights work of thought leader Ellen Brown , and the Public Banking Institute which educates policymakers about the opportunities from the straightforward process of forming a state owned bank.
Her site shares that:
Public Banks are…
- Viable solutions to the present economic crises in US states.
- Potentially available to any-sized government or community able to meet the requirements for setting up a bank.
- Owned by the people of a state or community.
- Economically sustainable, because they operate transparently according to applicable banking regulations
- Able to offset pressures for tax increases with returned credit income to the community.
- Ready sources of affordable credit for local governments, eliminating the need for large “rainy day” funds.
- Required to promote the public interest, as defined in their charters.
- Constitutional, as ruled by the U.S. Supreme Court
…and are not
- Operated by politicians; rather, they are run by professional bankers.
- Boondoggles for bank executives; rather, their employees are salaried public servants (paid by the state, with a transparent pay structure) who would likely not earn bonuses, commissions or fees for generating loans.
- Speculative ventures that maximize profits in the short term, without regard to the long-term interests of the public.