Advantages of Public Banking
How to Ease City or State Budget Crises: Own a Bank
Instead of theorizing about possible advantages we want to present a concrete example. It is from the almost 100 years of consistently successful performance of the public Bank of North Dakota. Briefly, from this we can conclude that a public bank can:
Private Banks are pressed by the owners to focus on rapid generation of profit, which often leads to more or less hazardous gambling with money that could have promoted the economic growth of the state and nation.
The public bank, on the other hand, is required by its owners - you, the people - to act so as to promote the economy of the state in the best possible way by providing credit for growth and prosperity.
North Dakota is an excellent example, being the only state in the US with a flowering economy and low unemployment in the midst of the more or less severe crisis of all the other states.
The experience from North Dakota indicates the following advantages:
If modeled on the successful Bank of North Dakota (presented further below), Partnership Banks in other states would:
Experiences from the successful public Bank of North Dakota (BND):
State-owned banks could be a win-win for virtually everyone. Objections are usually based on misconceptions or a lack of information. Proponents stress that:
Source: Marc Armstrong, President Commonomics USA.