State Bank of Ohio?
perhaps State Treasurer Mandel will address the budget deficit for which he was elected
Eric LaMont Gregory
There are so many misconceptions about the wisdom or otherwise of a state owned bank that one inevitably begins by stating what it is not.
A state owned bank does not mean the State is running the banking system!
The State merely approves Bank Charters for the independent businesses that run local banks. The State, not the federal government, audits the banks. The individual banks must comply with State laws, in the same way banks in the other 49 states must comply with federal laws, but they are independent privately owned businesses.
I say the other 49 States because one of the fifty, North Dakota owns its own banking system and has for nearly a century. And because, North Dakota owns its own banking system it has been able to fashion its loan programs to fit the needs of local borrowers. It has also been able to maintain control over its real estate markets and has escaped much of the foreclosure madness that is sweeping in the rest of the United States.
One advantage of a State Bank is that its profits go into the State Treasury, not the federal government. Therefore taxpayers’ money works within the State in which it is generated. Property taxes, state income taxes, sales taxes and all fees for services go to the State Bank.
At present our tax revenues from the State go into an account held by a private bank that makes money off of our taxes.
The State Bank of North Dakota keeps the money inside that State and the profits; the State Bank recently paid 30 percent of its income to the North Dakota State Treasury which helps reduce state tax burdens.
The profits from the bank are returned to its shareholders: the people of the State of North Dakota.
The citizens of Ohio now struggle with an eight-billion dollar budget deficit, and a structural debt of unknown proportions.
Perhaps, State Treasurer Mandel can take time from his on-again/off-again US Senate campaign and investigate the wisdom of a State Bank for Ohio and help address the budget deficit for which he was elected.
We are approaching one of the most important elections in recent American history; the need for an informed citizenry has never been as pressing.
A state bank is a proven way to ease the tax burden placed on an ageing population.