What state does not have a jobs problem? North Dakota. Its unemployment rate in July was 3.3%, a rate this country hasn't seen in the 21st century yet. It has had the lowest rate in the country every month for the past three years. Last year it had the greatest increase in payroll (5.2%) in the country.
What state is in very good financial shape? North Dakota. It has had a budget surplus since 2008. It has been able to reduce "individual income taxes and property taxes by a combined $400 million, and is debating further cuts. It also has the lowest foreclosure rate and lowest credit card default rate in the country, and it has had NO bank failures in at least the last decade."
Some people think that oil is the reason why North Dakota has done so well. Ellen Brown thinks it's because the state has a state-owned bank. Brown cites several oil states where the unemployment rate is in the 7%+ range.
The Bank of North Dakota is something like a mini-Federal-Reserve. It partners with banks in the state with loans and guarantees. It offers towns a loan program which enables towns to help residents borrow for such key items as jobs retention, technology creation, retail, small business, and essential community services.
The bank makes money; last year it earned 19% on equity. Basically how it makes money and is able to support other banks in the state is due to the fact that the state deposits its tax revenues in the bank. It does not place the funds with private banks that may be located all over the country. So, North Dakota money stays in North Dakota and benefits the residents. Sounds like a pretty good idea to me.
2 comments:
hey AL,
good to see you are not under hurricane irene water. we are good here on paradise island. norman and celeste
i dont know why this is here did i post a reply or not
Post a Comment