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US68 - A Financial Public Option
| For each state institute a state operated bank with the main purpose of providing investment in local citizens | |
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Description
Similar to the Bank of North Dakota, extended to all states. That way citizens can put their money in the state bank and the fractional reserve loans can be issued for local projects and businesses insofar as it increases the general welfare of the populace. Of course the state and state employees would be required to use the state bank, that way any tax revenue and or job supported by the state indirectly supports state projects.
I would have it run by elected officials, with only one term allowed lasting two years. They must consult with experts and if a loan is placed that could cripple the bank, it must be brought to a general population vote. In the event that the federal economy crashes, the local state bank will begin to issue its own currency of which the quantity control mechanism will be controlled by a unspecified mechanism (personally I like making the quantity tied to population x minimum_livable_wage and a progressive tax system to amortize incomes).
Arguments
Give your money to a institution charged with improving the general welfare of your state that is controlled by an elected board with limited terms... or you can give it a profit seeking corporation, controlled by a CEO with no responsibility to the people.
The Bank of North Dakota has given our state innovative programs that have helped small businesses get the capital they need to grow and hire workers. I will work to replicate those programs on the national stage and build on their success so our small businesses can expand — such as finding ways to enhance access to loan guarantees through the SBA, and programs at the Bank of North Dakota where we wrote down interest rates for expanding businesses (PACE). I will also work to make sure our small town banks and credit unions can compete by working to reform banking rules so that local community banks and credit unions are not “too small to succeed.”
Source: heidifornorthdakota.com
- This would likely happen if Social Security were to be abolished because currently, that's the only program that is standing in the way of the People being in charge of their retirement and investments. The States can't do a thing with this program still in effect the way it is.
4 Topics
Discussion
started
by GregOrr
on Jul 17
Mother Jones interview with Bank of North Dakota president
Interview
"Our funding model, our deposit model is really what is unique as the engine that drives that bank. And that is we are the depository for all state tax collections and fees. And so we have a captive deposit base, we pay a competitive rate to the state treasurer ... We take those funds and then, really what separates us is that we plow those deposits back into the state of North Dakota in the form of loans. We invest back into the state in economic development type of activities. We grow our state through that mechanism."
"We have specifically designed programs to spur certain elements of the economy. Whether it’s agriculture or economic development programs that are deemed necessary in the state or energy, which now seems to be a huge play in the state. And education—we do a lot of student loan financing. So that’s our model. We have a specific mission that was given to us when we were created 90 years ago and it guides us throughout our history."
started
by saritap
on May 17
Is your bank profit-making?
Would the bank you suggest seek to make profits, through interest on loans? Like, could people expect a return on their investment? I think having the state use the bank is a good idea, but I'm concerned about individual investors -- it might end up being difficult both to use bank funds to improve the general welfare and to encourage investment by individual investors hoping to get a return on their investment.
started
by saritap
on May 17
What do you suggest?
I'm not really sure what Social Security has to do with this. You're saying that rather than paying into the Social Security system, people should have to pay into the state banks/retirement programs? Or are you saying that people would just have more money to put into things like a state bank if they didn't have to pay into Social Security?
Why don't you add a separate idea about Social Security? I'm interested to see what you have in mind.
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