From USA Today! Economic struggles spur calls for public banking

Tracy Loew • usatoday.com • December 25, 2011

Spurred by the recession, bank bailouts and the difficulty consumers are having getting loans, members of the Occupy movement and others are stepping up calls for a public banking option.

North Dakota currently has the nation’s only state-run bank. Supporters point out that the state is the only one to have had a budget surplus since the economic crisis began, and has an unemployment rate below 4%.

“People are becoming more aware that our existing banking system isn’t serving us,” said Ellen Brown, one of the founders of the Public Banking Institute, a non-profit formed in January to advocate for public banking.

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One Response

  1. Failure of the financial sector is apparent in this period of economic contraction. It was designed to use the private sector to move idle money and savings into investments and loans; sitting on cash defeats the circular flow model and leads to excessive unemployment, lower incomes, and so forth. Market failures prompt governments, NGOs, and nonprofits to fill the gap. As a member of a federal credit union, I am looking forward to the day in which the for profit banking system is known to be an element in a bygone era; hoping Ohio will follow the lead other states are making.

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