Earlier this week, as two of my sons were in the orthodontist’s chair, I was sitting in the waiting area reading Time magazine. I read an article about the financially healthy state of North Dakota.
With all the bad financial news across the globe, it’s easy to believe that everyone is suffering in the economic crisis. Not so. North Dakota is doing quite well, thank you.
But I was disappointed because, while the article was full of anecdotes about North Dakota’s enviable economic boom, it skimmed over the reason why the state is doing so well.
A few months earlier, I had read an article by Ellen Brown, author of Web of Debt. Brown was the first to introduce me to the economy of North Dakota. Her blog features an article that talks about this very topic.
I think it’s a fascinating read, well worth three minutes of your time — especially if you live in one of the 46 states in America that aren’t doing as well…and facing possible bankruptcy.
With today’s news of higher-than-expected unemployment figures, America is still far from economic recovery. But I think it’s worth considering North Dakota’s example. Perhaps we need to rethink our current belief that the financial wealth of our individual states must first pass through Wall Street before it is returned to us.
July 3, 2009 at 9:01 pm |
Cindy,
I saw a TV news spot a few wks ago on this very topic. It is amazing, isn’t it, when you think of North Dakota, of all places? I do agree they are onto something with their own bank. I also think — and this is just me — that rural communities have stronger values and family/community ties. They are more grounded in reality (not in Hollywood’s vision of prosperity) and that might well be an unspoken factor in North Dakota’s “success.”
Off topic — thanks for listening the interview Cindy! I didn’t realize it had been archived yet. Not sure if I will listen to it, as I always feel weird hearing my own voice….
July 5, 2009 at 2:28 am |
Interesting read but I don’t believe the fact that North Dakota has a state bank is the telling difference in ND’s economy. Had California or New York had state banks not only would those states still have economic problems but they would probably be even worse. State banks in Cali and NY would be run on very liberal policies of social engineering such as sub-prime loans and the failure of state owned banks would exacerbate anf financial downturn.
The key to ND’s economy is not that they owned a state bank but the regulations and the core philosophy by which the bank is run. A conservative philosophy of strict loan policies and business practices are what leads to a strong and stable economy.
July 5, 2009 at 2:48 am |
A friend of mine just returned from visiting her family in ND. I look forward to talking to her about this news about her home state.
July 5, 2009 at 5:53 pm |
Jim, I’m linking now to an article in Mother Jones magazine http://www.motherjones.com/mojo/2009/03/how-nation%E2%80%99s-only-state-owned-bank-became-envy-wall-street that also talks about this. According to the ND banker who was interviewed, some of this does depend on the conservative philosophy of the bank. But the ND banker said that ND banks also weathered the dot-com bubble pretty well a decade ago, so I think there’s more to it than just following conservative home-lending principles. Also, the MJ article talked about the irony of what some would call “socialism” in a traditionally red state.
Sharon, please let me know what your friend has to say after visiting her family in ND. I will be very interested.
July 6, 2009 at 1:42 am |
I’m gonna show my bias and say that having a state run bank rather than depending on nationals or the Federal Reserve system is actually a great example of states rights and not socialism. . . .
July 6, 2009 at 1:27 pm |
I was playing Devil’s advocate by using the word “socialism” here. I don’t consider it socialism, either. Also, from what I’ve read, the Bank of North Dakota works cooperatively with private banks in the state. And based on what’s been happening with the financial industry at the national and international level, I think the example of North Dakota is well worth considering. I’ll be happy to learn more about it after Sharon talks with her friend.