Public Banking Works
Public banks serve people, not corporate predators.
by Stephen Lendman
Publicly-owned banks work as intended. Colonial America had them for 25 years. Tax and inflation-free prosperity followed.
Money created produced economic growth. It ended when Bank of England scoundrels regained control.
Public banks aren't predatory profiteers. They're not beholden to Wall Street, shareholders, or greedy corporate executives. They serve communities, states or nations responsibly. It works the same way everywhere they exist.
North Dakota is America's only public banking state. It's 100% state owned. It was established in 1919. It partners responsibly with private banks. Instead of cutting back like other states, North Dakota experiences growth. It passes on benefits to residents.
It has the nation's lowest unemployment rate. In September 2012, the Bureau of Labor Statistics ranked it number one at 3.0%. During the height of the 2008 economic crisis, North Dakota had its largest budget surplus in state history. Benefits were shared with residents.
Other states are struggling to manage. North Dakota alone prospers. Imagine if all states were run the same way. Hiring instead of firing would be policy. Economic hardships would be minimized or avoided.
It works the same way everywhere. Federal, state and local debt could be substantially reduced or eliminated. Taxes could be minimized. Economic growth would be prioritized. So would job creation.
Social programs could be funded inflation-free. Universal healthcare and education to the highest levels would be possible. Home foreclosures would end. Everyone would have access to low-interest rate loans.
Vital infrastructure could be rebuilt and protected against disasters like Sandy. Booms and busts would end. Ordinary people would be helped like rich ones. Private pensions, savings, and investments would be secure.
Ellen Brown heads the Public Banking Institute (PBI). It's an idea whose time has come.
Public banks differ from private ones. They're mandated to serve the public interest. They're not beholden to shareholders and corporate executives. Profits and personal gain aren't prioritized.
In 1997, the Bank of North Dakota (BND) saved Grand Forks. It acted responsibly after massive Red River flooding. More on that below.