SD trusts provide less construction overhead and lack local economic stimulus power – Dakota Free Press
Here’s another reason South Dakota’s trust industry is not the big engine of economic development claimed by the Republican lawyer / banker clique.
New businesses are good for the local economy because, among other benefits, they have overhead costs. A business generally needs a place to do business: a store, an office, a workshop, a studio. New businesses rent and repair downtown storefronts, or they buy land and build new buildings. Independent contractors buy more tools and trucks than their garage can hold, so they buy lots and set up steel barns. Even people doing business from home contribute to construction activity: Our local lumber yards have experienced a pandemic boom because many remote workers have added offices to their homes or garden sheds converted into remote work modules.
But a lot of approved trust companies listed by the Division of Banking are just simple paper tigers, occupying no building space, paintable and maintainable. According to the listed addresses of the trusts, these 102 licensed cashiers occupy only 39 separate buildings. Here are the most popular locations with the number of trusts housed in various lockers:
- 212 South Main Avenue, Sioux Falls: 36
- 401 East 8th Street, Sioux Falls: 11
- 201 Phillips Avenue South, Sioux Falls: 5
- 101 Reid Street South, Sioux Falls: 4
- 140 North Phillips Avenue, Sioux Falls: 3
- 300 North Dakota Avenue, Sioux Falls: 3
These trusts don’t build new buildings or even keep large offices occupied with lots of people in need of lots of desks and closets, break rooms, and dabblers. they occupy most empty spaces providing little economic benefit that we get from real companies making real things and spending real money on real overheads. These are literal shells serving only to help the wealthy continue to accumulate their wealth, with a handful of delicate avocados foaming foam from above.