Chatting with ChatGPT about Public Banking

Artificial Intelligence & AI & Machine Learning
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AI can provide useful insights into a great many things of importance to human beings. Here, partly at the request of leaders from the Public Banking Institute (PBI), is a discussion I had with ChatGPT, the currently best known natural language AI engine. It has been slightly edited for clarity:

SB: What have been the advantages to North Dakota in having a Public Bank?

ChatGPT: North Dakota is the only state in the US to have a state-owned public bank, known as the Bank of North Dakota (BND). Some of the advantages of having a public bank in North Dakota include:

1. Increased financial stability: BND provides low-cost loans to local governments and financial institutions, helping to stabilize the state's economy and reducing the risk of financial crisis.
2. Economic development: BND invests in local businesses and infrastructure projects, supporting economic growth and job creation in the state.
3. Better public services: By keeping state funds in a public bank, North Dakota is able to better control the use of its financial resources, prioritize public services and projects, and avoid paying fees and taxes to Wall Street banks.
4. Increased transparency and accountability: BND is subject to greater transparency and accountability requirements than private banks, ensuring that public funds are used responsibly and effectively.

Overall, the Bank of North Dakota has provided several advantages to the state of North Dakota and its residents by supporting the local economy, providing stability, and promoting transparency and accountability.

SB: Cite specific examples of each of your 4 examples

ChatGPT: Here are specific examples to support each of the four advantages of having a public bank in North Dakota:

1. Increased financial stability: During the 2008 financial crisis, North Dakota's economy remained relatively stable due to the presence of the Bank of North Dakota. BND provided low-cost loans to local financial institutions, helping them weather the storm and avoid failures that would have further destabilized the economy.
2. Economic development: The Bank of North Dakota has invested in a number of initiatives aimed at boosting the state's economy, including local businesses and infrastructure projects. For example, BND provided financing to build a new airport in Williston, North Dakota, which has helped to support the state's growing energy sector.
3. Better public services: By keeping state funds in a public bank, North Dakota is able to better control the use of its financial resources and prioritize public services and projects. For example, BND has provided financing for the construction of new schools, roads, and other public infrastructure projects.
4. Increased transparency and accountability: As a state-owned bank, the Bank of North Dakota is subject to greater transparency and accountability requirements than private banks. For example, BND's financial statements and activities are subject to regular audits, and the bank's operations are subject to oversight by the state legislature. This helps to ensure that public funds are used responsibly and effectively.

SB: Compare and contrast the advantages of North Dakota's having a Public Bank vs. South Dakota, which does not have a Public Bank.

ChatGPT: North Dakota and South Dakota are neighboring states in the US, with North Dakota being the only state in the country to have a state-owned public bank, the Bank of North Dakota (BND). South Dakota, on the other hand, does not have a public bank. Here are some of the key differences in the advantages between the two states in this regard:

1. Financial stability: North Dakota has a history of greater financial stability due to the presence of BND, which provides low-cost loans to local governments and financial institutions during times of economic stress. South Dakota, in contrast, has relied on private banks for financial services, which may be subject to greater market risks and fluctuations.
2. Economic development: BND has invested in local businesses and infrastructure projects in North Dakota, helping to spur economic growth and job creation in the state. South Dakota has also experienced economic growth, but it has largely relied on private banks and other financial institutions to provide financing for local businesses and projects.
3. Better public services: By keeping state funds in BND, North Dakota is able to better control the use of its financial resources and prioritize public services and projects. South Dakota, on the other hand, may have less control over the use of its public funds and may be subject to fees and taxes imposed by Wall Street banks.
4. Transparency and accountability: As a state-owned bank, BND is subject to greater transparency and accountability requirements than private banks. South Dakota, by relying on private banks, may have less control over its financial resources and may be subject to fewer transparency and accountability requirements.

In summary, North Dakota's public bank provides several advantages over South Dakota's reliance on private banks, including greater financial stability, more targeted investment in local businesses and infrastructure, better control over public funds, and greater transparency and accountability.

SB: Draw a graph showing the difference over the last 50 years in GDP growth in both states.

ChatGPT: I'm sorry, I am a text-based language model and do not have the capability to generate graphs. However, I can provide information on the GDP growth of North Dakota and South Dakota over the last 50 years. According to data from the Bureau of Economic Analysis, North Dakota and South Dakota have both experienced steady economic growth over the last 50 years, with some fluctuations due to changes in the energy and agriculture sectors, which are major drivers of the economies in both states. On average, North Dakota's GDP has grown faster than the national average, due in part to the state's energy boom in the 2000s and 2010s. South Dakota's GDP has also grown, but at a slower pace compared to North Dakota. Overall, both states have been relatively stable and have avoided the major recessions that have affected other parts of the US.

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