North Dakota’s Economic Miracle – it’s not Oil

Published on Web of Dept, by Ellen Brown, August 31, 2011.

North Dakota has had the nation’s lowest unemployment ever since the economy tanked. What’s its secret? In an article in The New York Times on August 19th titled “The North Dakota Miracle,” Catherine Rampell writes:

  • Forget the Texas Miracle. Let’s instead take a look at North Dakota, which has the lowest unemployment rate and the fastest job growth rate in the country. 
  • According to new data released by the Bureau of Labor Statistics today, North Dakota had an unemployment rate of just 3.3 percent in July—that’s just over a third of the national rate (9.1 percent), and about a quarter of the rate of the state with the highest joblessness (Nevada, at 12.9 percent).
  • North Dakota has had the lowest unemployment in the country (or was tied for the lowest unemployment rate in the country) every single month since July 2008.
  • Its healthy job market is also reflected in its payroll growth numbers. . . . [Y]ear over year, its payrolls grew by 5.2 percent. Texas came in second, with an increase of 2.6 percent.
  • Why is North Dakota doing so well? For one of the same reasons that Texas has been doing well: oil.

Oil is certainly a factor, but it is not what has put North Dakota over the top. Alaska has roughly the same population as North Dakota and produces nearly twice as much oil, North Dakota has had the nation’s lowest unemployment ever since the economy tanked. What’s its secret? … //

… Not all states have oil, of course (and it’s hardly a sustainable economic basis), but all could learn from the state-owned bank that allows North Dakota to capitalize on its resources to full advantage. States that deposit their revenues and invest their capital in large Wall Street banks are giving this economic opportunity away. (full text).

Links:

Interactive Map: What States, Counties, Industries Have Job Growth? Sept. 2, 2011;

Greater fool theory on en.wikipedia, and on £moneyterms.co.uk;

Bagholder on en.wikipedia;

The Dollar Vigilante;

HoweStreet.

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