Welcome to the Deep Dive. Our mission is always
the same. Take a complex topic armed with a stack
of thorough source material and extract the concentrated
insights you need to be well -informed fast.
And today we're venturing into a state that is,
well, it's arguably one of the most misunderstood
in the union, South Dakota. Yeah, I think for
most people, their knowledge starts and ends
with its nickname, the Mount Rushmore State.
Right. That and maybe its official motto, which
is, you know, brilliantly ambitious. Under God,
the people rule. But as we were digging into
the history, the geography, the economy, one
fact just became inescapable. This is a state
that is fundamentally at war with itself. Exactly.
Our sources define the state by this profound
central fault line. South Dakota isn't really
one single entity. No. It's geographically, socially,
politically, and economically split. right in
half by the Missouri River. We're really talking
about two distinct worlds that barely seem to
recognize each other. They call them East River
and West River. And the difference between them
is just massive. It covers everything from the
climate in which you can grow to the culture
and, of course, the political leanings. So we
have assembled a really comprehensive collection
of resources. We're looking at South Dakota's
history, its hidden wealth, its persistent poverty,
and its pretty surprising modern role in... global
finance it's a fascinating story so our promise
to you the learner is to unpack this powerful
duality we're going to move past the famous faces
carved in granite and reveal the crucial contrasting
facts that define the real south dakota so let's
start right at the beginning how this deeply
divided territory was first settled and ultimately
claimed human history here goes way back and
it's marked by constant change and frankly a
lot of conflict it is if we look at the timeline
from the sources the earth Earliest evidence
we have points to Paleo -Indian hunter -gatherers.
But they actually, you know, they disappear from
the archaeological record around 5000 BC. So
there is this huge long period where human presence
was either sparse or just migratory. What happens
next? Well, we have to jump forward quite a bit
to between 500 and 800 AD. Right. That's when
we see the arrival of the semi -nomadic mound
builders. They were operating mostly in central
and eastern South Dakota. So this region right
around the big river systems has always been
an area of transition. And often immense conflict.
That history is immediately underscored by this
one really chilling historical event that happened
right near that critical dividing line, the Missouri
River. You're talking about the Crow Creek Massacre?
Yeah, in the 14th century. It's a tragic detail.
At a fortified village near the Missouri, archaeological
evidence suggests several hundred people, men,
women, and children were violently killed. It's
a stark reminder that long before Europeans even
arrived, the Missouri River Valley was this incredibly
strategic and contested area. Absolutely. Vital
for trade, for agriculture. So by the 1500s,
another major group had settled the valley, the
Arikara, who are also known as the Ree. And they
established these large sort of semi -permanent
villages right along the water, and they dominated
the trade networks. Their dominance, however,
it started to wane by the early 19th century.
That's when the Sioux tribes... the Lakota, Dakota,
and Dakota, they became ascendant. And the Sioux
were primarily nomadic buffalo hunters, right?
Following the great herds across the plains.
That's right. And they eventually lent their
name to the state we're talking about today.
So while the Sioux were establishing their power
base, the European claims arrived surprisingly
early. Who exactly planted the first flag? That
credit goes to the French. In 1743, the Lavrandi
brothers explored the region and formally claimed
it for France. That's part of the Louisiana Territory.
Exactly. And they did this wonderful symbolic
thing. They buried a lead plate near the site
of what is now modern -day Pierre, the state
capital, to physically mark that claim. Burying
a plate near the future capital? That's a pretty
potent historical image. But French control was,
I mean, it was notoriously fickle in the middle
of the continent, right? It was fleeting. The
region was transferred to Spain in 1762, becoming
part of Spanish Louisiana, only to be handed
back to France in 1802. So this constant shifting
of colonial claims really shows just how lightly
populated and remotely governed the area was.
Yeah, it was just a political pawn in European
struggles. Yeah. Until the next great power arrived
on the scene. And that power, of course, was
the United States, which arrived in a big way
with the 1803 Louisiana Purchase. Which encompassed
most of what would become South Dakota. And almost
immediately, President Thomas Jefferson commissioned
the Lewis and Clark Expedition to go out and
map this enormous new territory. And their detailed
accounts, you know, they laid the practical groundwork
for American expansion westward. So when does
American settlement really begin? Continuous
American settlement is generally dated from 1817
with the establishment of a really critical fur
trading post at present -day Fort Pierre. Strategically
located right on the Missouri River. But the
acquisition of land from the indigenous inhabitants,
that was the real accelerant. And the critical
turning point in that was the 1858 Treaty. Correct.
In that treaty, the Yankton Sioux ceded a massive
amount of territory, most of what is now eastern
South Dakota to the United States. And that strategic
move opened up the fertile East River region
to development. And land speculators did not
waste any time. The sources tell us Sioux Falls
was founded in 1856 and Yankton in 1859. So these
settlements really demonstrated the intent to
develop the eastern plains aggressively. This
momentum led directly to the establishment of
the Dakota Territory in 1861, which was initially
huge. It had parts of modern -day Montana and
Wyoming in it. But what truly supercharged the
population was, well, it was infrastructure and
federal incentive. You're talking about the Dakota
boom. Exactly. What were the key ingredients
that made that boom possible? Well, the first
was the federal government's policy of the Homestead
Acts, offering free land to settlers who were
willing to work it. And the second was the arrival
of the railway. A vital eastern railway link
reached Yankton in 1873. So now you had this
influx of settlers, mostly German and Scandinavian,
pouring into the East River region because they
could farm the land and then ship their produce
to eastern markets. It sounds like the East River
identity agricultural. connected to the Midwest,
was literally forged by that railway spike and
the Homestead Act. It was. But as that boom pushed
west toward the mountains, the historical trajectory
became tragic. This is the moment where we have
to confront the central historical wound of the
state. Right. In 1874, a military expedition
led by George A. Custer confirmed the presence
of gold in the Black Hills. And Custer's expedition
wasn't just a simple exploration, was it? It
was a direct and really a deliberate violation
of an existing solemn treaty. Absolutely. We
have to emphasize the gravity of the 1868 Treaty
of Laramie. That treaty explicitly guaranteed
the entire western half of present -day South
Dakota to the Lakota people. So the Great Sioux
Reservation, including the Sacred Black Hills?
Everything. Custer's presence, which was authorized
by the U .S. government, was a blatant violation
of that agreement. And what happened when Custer
confirmed there was gold? An immediate uncontrolled
land invasion. Thousands of miners and prospectors
flooded into the Sacred Black Hills, completely
ignoring the treaty rights. And when the Sioux,
quite reasonably, declined to sell or grant mining
rights to the U .S. government? War broke out.
So the U .S. broke its own treaty. sparked a
conflict to protect illegal settlers. And when
the U .S. military ultimately prevailed, they
just dissolved the Great Sioux Reservation. That's
the bitter truth. The reservation was broken
up into five smaller much less desirable reservations,
forcing the Lakota onto marginal lands. And the
consequences of this action aren't just historical
footnotes. They are very much alive today. Absolutely.
Especially when you look at the 1980 Supreme
Court ruling. Many people might not understand
the significance of the Lakota's reaction to
that ruling. So in 1980, the Supreme Court ruled
that the U .S. government had illegally seized
the Black Hills and Congress and the court ordered
that compensation be paid. Critically, the Lakota
nation still refuses to accept that money. Why
refuse what has now grown into a multi -billion
dollar payment? Because accepting the money would
legally extinguish their claim to the Black Hills.
From the perspective of the Lakota, accepting
compensation would be like legalizing the theft
of their sacred ancestral land. So they insist
on the return of the land itself, not a cash
payout. Exactly. It's one of the longest running,
deepest cultural and political conflicts in modern
American history. It just demonstrates that the
wounds of 1874 are still wide open. That level
of principled resistance really speaks volumes
about the value that land holds. And this chapter
of intense conflict tragically concludes in the
19th century with the Wounded Knee Massacre.
Yeah. On December 29, 1890, On the Pine Ridge
Indian Reservation, the conflict reached its
horrific climax. The U .S. Army killed at least
146 Sioux, including many women and children,
alongside 31 U .S. soldiers. This event is cited
as the last major armed conflict between the
U .S. and the Lakota Sioux Nation. And it left
an indelible mark on the state's relationship
with its indigenous population. So moving from
the battlefield to the political arena, by the
late 1880s, the huge Dakota Territory was pushing
for statehood, but internal friction demanded
it be divided. And the political dissatisfaction
was primarily geographic. Right. The southern
half was more populated and had different agricultural
interests than the north. But there was also
a powerful political motivation at play back
in Washington. What was the political incentive
for splitting one territory into two? Well, creating
four new Republican senators instead of just
two from one large territory. Since the Dakota
Territory was reliably Republican at the time,
this was a clear advantage for the party controlling
Congress. So they rushed the creation of two
states, even while ignoring the... You know,
the awkward fact that the issue of tribal land
rights in the West River area was far from resolved.
Precisely. After territory residents voted for
the division, Congress authorized the creation
of the two Dakotas, plus Montana and Washington.
And the moment of official statehood arrived
on November 2, 1889. Which brings us to that
marvelous piece of political theater. Right.
South Dakota and North Dakota entered the union
simultaneously, becoming the 39th and 40th states.
And to prevent anyone from claiming superiority
or political precedence, President Benjamin Harrison,
a Republican, famously shuffled the two statehood
papers before signing them. So he signed both,
but the order was unrecorded. No one knows to
this day which one was first. It's a fantastic
historical detail, but it really symbolizes something
deeper than just a political game. It represents
a state born out of a strategic political decision,
a rushed, pragmatic move that cemented its dual
identity right from day one. That political and
historical division is so deeply rooted in the
physical reality of the land. Now that we understand
the foundations, let's dive into the geographical
facts that maintain this deep East River -West
River split. We really can't overstate the Missouri
River's role here. It's the spine of the state,
but it effectively bisects South Dakota into
two geographically and socially distinct halves.
And this leads to something of an identity crisis.
The U .S. Census Bureau considers South Dakota
part of the Midwest based on... the East River's
identity. But when you cross the Missouri, West
River culture, the economy, the landscape, it
all aligns far more closely with the West. Yeah,
with ranching, resource extraction, and those
rugged, arid plains. And we're talking about
a massive land area, the 17th largest state in
the country. Yet. It ranks as the fifth least
populous and the fifth least densely populated.
Vocation, not population, really dictates the
politics and the culture here. That's a great
way to put it. The state is vast and sparsely
populated. For a tangible sense of that, the
center of this sparse population is an unincorporated
community. Gann Valley. Which is the county seat
of Buffalo County. That just confirms that even
the political centers lean heavily into the remote
reality of the Great Plains. Absolutely. So let's
look at why these two halves are so fundamentally
different, starting with the area east of the
river. Ace River, South Dakota is defined by
the legacy of glaciation. It's generally characterized
by higher precipitation and lower, more rolling
topography than the West. And that shaping force
was quite recent, geologically speaking. The
landscape here is covered by the youngest rock
layers and sediments in the state. Right, deposited
during successive periods of glaciation in the
Pleistocene Epoch. Which lasted until about 12
,000 years ago. When those massive ice sheets
retreated, they scraped and dropped what geologists
call till a rich, fertile mix of rock and soil.
So the glaciers weren't just destructive, they
were also highly beneficial, creating this agricultural
heartland. Exactly. And within this East River
area, we find these distinct geographical provinces.
First, you have the Coteau de Prairie, which
is a high, elevated plateau that escaped the
latest glaciation. Creating excellent drainage.
Right. Then there's the dissected Till Plains,
which has those rolling hills and the incredibly
fertile soil, making it prime for crop production.
And finally, the James River Valley, which is
a low, flat stretch. Yeah, and it's highly eroded
and often marshy. The James River flows really
sluggishly south. So East River is this mosaic
of fertile, glacially modified landscapes, perfect
for the major crops we'll discuss later, corn
and soybeans. Now cross the Missouri and you
encounter what feels like a physical wall that
separates the state. West of the river, we are
firmly on the Great Plains. The landscape shifts
immediately. It is noticeably more arid, more
rugged, and defined by erosion. You find vast
rolling hills, sweeping plains, deep ravines,
and the iconic buttes. Those steep, flat -topped
hills that just characterize the American West.
And the sources single out the Badlands as a
prime example of this environment. What makes
the Badlands so geologically spectacular? Well,
the Badlands are spectacular because they are
a visible record of deep time. They are, of course,
formed by intense erosion of clay and sand layers.
But those layers contain marine skeletons from
an ancient shallow sea that covered the entire
region millions of years ago. And it's mixed
with volcanic ash carried by wind from Western
eruptions. So a visitor is essentially walking
through a record of ancient oceans and distant
volcanoes, all exposed by modern weather. It's
a harsh environment. Difficult for large scale
agriculture. Which explains why the West River
economy is historically centered on ranching
rather than cropping. Exactly. But standing apart
from the rugged badlands are the Black Hills,
a massive island like mountain range in the southwest
corner. They may be low mountains, but their
significance historically, culturally and geographically
is immense. Culturally, they are sacred lands
to the Sioux. Geographically, they represent
a continental high point. Black Elk Peak. which
was long known as Harney Peak, stands at 7 ,242
feet. This makes it the highest point in the
United States east of the Rocky Mountains. That
is an enormous geographic marker that few people
associate with South Dakota. And how old is the
geological structure of the Black Hills compared
to the rest of the state? Oh, they're ancient.
While the East River is covered in young glacial
till, The central core of the Black Hills is
formed of 2 billion -year -old Precambrian formations.
The absolute oldest, deepest rocks in the entire
state. That's a staggering age difference. And
the outer ring is composed of Paleozoic formations,
primarily limestone. Which were deposited when
the area was the shoreline of that ancient inland
sea. Essentially, the Black Hills are a huge
geological dome where the oldest rocks were pushed
up, and the younger, though still ancient, layers
were deposited around the edges. This clash of
landscapes, glaciated plains, arid plains, and
mountains, it just guarantees a volatile climate.
It does. South Dakota experiences a temperate
continental climate. But the operative word here
is definitely extremes. The temperature swings
are extraordinary because there are no large
bodies of water to moderate them. Exactly. Winters
are famously cold and dry, with January lows
averaging close to 10 degrees Fahrenheit. Summers,
conversely, are warm and semi -humid, with average
highs around 90. But the record book is shocking.
We've gone from a high of 120 degrees Fahrenheit
at Oosta to a low of knackers 58 at McIntosh.
178 degrees Fahrenheit. swing. That's not just
weather. That's environmental hostility. It demands
resilience from everything living there. And
those extremes bring constant hazards. Eastern
South Dakota sits firmly in Tornado Alley. It
averages about 30 tornadoes every year. And conversely,
in the winter, the state is battered by severe
blizzards and ice storms. So let's talk about
life in this challenging environment. The dominant
biome is temperate grassland. Right. Outside
of the Black Hills, you have this vast landscape
of grasses and crops with deciduous trees, cottonwood,
elm clinging to the river valleys. And it's the
classic Great Plains fauna. Herds of bison, whitetail
deer, pronghorn, prairie dogs, and coyotes. And
the state bird, the ring -necked pheasant. That's
an introduced species, isn't it? Yes. It was
introduced from China and has adapted spectacularly.
It's become central to the state's culture and
economy, especially in the East River area. And
inside the Missouri River itself, you find a
truly ancient species. The prehistoric paddlefish,
a living relic swimming right through the heart
of the state. Now contrast that life with the
Black Hills. The Black Hills are an ecological
island. Their higher elevation and heavier precipitation
support dense pine forests, ponderosa. lodgepole
and spruce. And the wildlife shifts to large
mammals like elk, bighorn sheep and the elusive
mountain lion. The shift in elevation completely
changes the entire ecosystem. And this geographical
split between East River and West River directly
informs the state's demographics and its most
striking socioeconomic paradoxes. It is a place
of deep cultural roots and deep inequality. So
let's establish the baseline. South Dakota is
small by population. estimated at about 924 ,669
in 2024. That puts it 46th in the U .S. And the
density is tiny, only 11 .5 people per square
mile. Yet within those sparse numbers, there's
a remarkable public health statistic that stands
out immediately. South Dakota boasts the lowest
drug overdose death rate in the U .S. In 2022,
it was 11 .3 per 100 ,000. That is a critical
data point. Despite the isolation and the economic
hardships faced in certain regions, which often
correlate with higher rates of substance abuse,
South Dakota maintains a significantly lower
rate than the national average. It speaks to
either strong community support or lower prescription
rates or some other protective factors. Now let's
look at the cultural composition. The overall
racial breakdown shows the majority is white.
at 84 .2%, but the American Indian and Alaskan
Native population is substantial at 8 .5%. And
that 8 .5 % is misleadingly uniform. When you
look at ancestry, the East River's heritage is
stark. It is. 40 .7 % German ancestry and 15
.3 % Norwegian. These German -Americans dominate
the cultural and political landscape east of
the Missouri. But the closer you get to the Black
Hills, the demographics just flip, confirming
the duality. Absolutely. The Lakota, Dakota,
and Lakota Sioux are predominant in several West
River counties, where they can make up 20 % of
the entire West River population. Nationally,
South Dakota has the third highest proportion
of Native Americans, behind only Alaska and New
Mexico. It's a profoundly important cultural
center for the Sioux Nation. And we also find
a very specific and unique cultural pocket in
South Dakota. The Hutterites. Right. South Dakota
actually has the nation's largest population
of Hutterites. A communal Anabaptist group. They
emigrated in 1874 from German -speaking parts
of the Russian Empire and maintained these self
-sufficient communal farm colonies. So a deeply
private, distinct cultural group that contributes
uniquely to the state's German heritage, but
stands apart because of their communal lifestyle.
We have to move now into the core of the socioeconomic
paradox. Five counties in South Dakota exist
wholly within the boundaries of sovereign Indian
reservations. And the economic situation on these
lands is one of systemic, profound poverty. The
isolation and the marginal quality of the land
allocated to the reservations after the breakup
of the Great Sioux Reservation. It created a
perfect storm for economic hardship. The sources
illustrate this with devastating clarity. Can
you give us a sense of the scale of the struggle?
Well, consider Zimbabwe County. home to part
of the Cheyenne River Reservation. In 2009, it
was officially the poorest county in the entire
nation. The poorest county in the U .S. And the
unemployment rate in specific communities, like
Fort Thompson on the Crow Creek Reservation,
can soar up to 70%. 70%. That's higher than what
many nations experienced during their worst economic
depressions. It speaks to a severe lack of viable
economic infrastructure. And the hardship extends
to basic necessities. According to documentation,
21 % of households lack basic plumbing or functional
kitchen appliances. And what about connectivity?
Well, a 1995 study showed that 58 % of homes
on the Kindridge Indian Reservation didn't even
have a telephone. While technology has obviously
changed, the challenge of connectivity and infrastructure
remains immense. And this structural hardship
affects their ability to leverage potential economic
drivers, like gaming. Precisely. Unlike tribes
in states closer to major metropolitan areas,
South Dakota's tribes are highly isolated. This
makes it really difficult to generate significant
revenue from casinos. They just don't have the
population centers nearby to draw from. Right.
The profound economic disparity between the reservations
and the booming urban centers like Sioux Falls
is the single greatest social challenge facing
the state. How does this dual demographic reality
manifest in the state's approach to language?
Historically, a 1995 law established English
as the common language of the state. Okay. However,
recognizing the deep cultural importance of the
indigenous population, the state made a critical
legal shift in 2019. And what was that change?
Since 2019, the language of the Great Sioux Nation
the Dakota, Lakota, and Makota dialects, has
been recognized as the state's official indigenous
language. Which is a profound affirmation of
cultural survival and identity, giving the indigenous
languages a unique legal status. It is. The sheer
proportion of people speaking an indigenous language
actually surpasses the number of Spanish speakers
in the state. Which highlights the strength and
continuity of the Native American population.
Now, South Dakota encapsulates the classic Great
Plains demographic struggle. The battle against
rural flight. Right. Mechanization and consolidation
of agriculture mean fewer people are needed to
farm huge tracts of land. And the result is a
massive decline in rural populations. 30 counties
experienced population loss between 1990 and
2000 alone. And this has a direct impact on the
demographic profile of those remaining counties.
You see rising median ages. In 24 counties, over
20 % of the population is age 65 or older. The
young people have to move to find employment.
But this flight isn't universal. We see areas
of explosive growth that almost cancel out the
rural losses. Growth is heavily concentrated
in the Sioux Falls area. Lincoln County became
one of the fastest growing counties nationally
in 2010. The Black Hills area around Rabbit City
also sees significant development. And interestingly,
many Indian reservations are also seeing population
increases. Why the growth on the reservations?
As the reservations assert greater sovereignty
and cultural identity, many Sioux are returning
from urban areas, reversing previous migration
trends. It's a movement seeking to rebuild and
strengthen the sovereign nations. And now for
the absolutely brilliant, surprising detail that
defines South Dakota's unique approach to legal
identity. The RV residency loophole. This is
a perfect example of the state leveraging its
low tax and low density environment for economic
gain. The mechanism is simple. but revolutionary.
A one -night stay in South Dakota is the minimum
required to legally establish residency. A single
night. For full -time travelers, people who live
in RVs, or even those who live internationally
but need a stable U .S. address, South Dakota
offers unbeatable advantages. No personal income
tax and no state inheritance tax. So someone
can drive in, stay one night, get a mailbox,
register their vehicles, and immediately claim
the legal and financial benefits of South Dakota
residency without any long -term physical commitment
to the place. It effectively turns the state's
low -density and favorable tax climate into a
high -value service for highly mobile individuals.
It's a mechanism for establishing legal identity
with minimal commitment to the physical place.
A very modern and surprising economic engine
for a Great Plains state. The economic story
of South Dakota is the greatest paradox of all.
It's a state known for cattle and corn, yet its
most powerful economic engine today is global
high finance. Yeah, a massive hidden tax haven.
Traditionally, the economic output of the state
has been modest. In 2010, the gross state product
was $39 .8 billion. Which made it the fifth smallest
state output. Per capita income is also squarely
in the middle, around 25th nationally. But those
overall numbers mask incredible efficiency and
strategic governance. In 2010, for instance,
CNBC ranked South Dakota the seventh best state
in the nation for business. And unemployment
rates are consistently low, often running below
the national average. The state runs lean and
is extremely business friendly. Thanks in large
part to the low tax environment. But the real
story isn't the efficiency of traditional industry.
It's the strategic capture of the financial services
sector. The largest contributor to the modern
South Dakota economy is the service industry,
health care, retail, and above all, finance.
But how did Sioux Falls, a city on the plains,
become a global financial hub? It all traces
back to one brilliant strategic legislative maneuver
in 1981. The Citibank move. At the time, New
York had strict caps on the interest rates banks
could charge credit card holders usury laws.
And New York banks were starting to feel pinched
by inflation and competition. Precisely. In 1981,
South Dakota became the first state in the nation
to completely eliminate those caps on interest
rates. This legislative act was revolutionary.
It created a legal environment where credit card
issuers could charge whatever interest they wanted
nationwide. So Citibank, seeking to escape New
York's restrictive laws, immediately moved its
credit card operations to Sioux Falls. And this
wasn't just a move of a few desks. No, this was
the relocation of a massive, critical business
function. And many other financial companies
followed suit, transforming Sioux Falls into
a major data processing and financial services
hub almost overnight. But the financial capture
didn't stop there. It extended into the shadowy
world of trust funds. Right. South Dakota has
some of the most favorable trust laws in the
United States, allowing wealthy individuals,
foreign and domestic, to create perpetual trusts.
These trusts can manage assets indefinitely,
often shielding hundreds of billions of dollars
from future taxation, creditors and legal claims.
So while parts of West River struggle with poverty.
East River Sioux Falls manages hundreds of billions
of dollars of global wealth, largely because
of the state's decision to dismantle banking
regulations decades ago. It is the ultimate paradox.
The state is simultaneously host to some of the
nation's deepest economic hardship and a secretive,
powerful nexus of international wealth management.
And this sector provides high paying jobs in
the east, which just solidifies the economic
disparity across the river. Despite the high
-tech finance industry, we can't ignore the historical
and cultural heart of South Dakota, agriculture.
Agriculture is still vital. It defines the rural
landscape and culture. But here, too, the East
River, West River division holds true. East River,
with its photoglacial till, is the crop, heartland
corn, soybeans, and wheat. While West River is
the land of ranching, it's dominated by vast
cattle and hog operations. And what about energy?
The state is a major player in agricultural processing.
It ranks as the sixth leading ethanol -producing
state, utilizing its vast corn output. And beyond
agribusiness, the government sector itself is
critical. Government spending accounts for over
10 % of the gross state product. And the military
plays a key role, particularly in the West River
economy. Ellsworth Air Force Base near Rapid
City is the state's second largest single employer.
Defense spending provides essential stability
to the West River economy, which lacks the dense
financial presence of Sioux Falls. Moving to
another crucial sector, tourism has grown into
a major economic pillar, providing roughly 33
,000 jobs and generating billions annually. And
the gravitational pull is undoubtedly the Black
Hills. The monumental draws are world famous.
You have Mount Rushmore, of course, and nearby
the ongoing, privately funded Crazy Horse Memorial,
which is designed to dwarf Rushmore in scale.
And besides the monuments, the area offers incredible
natural beauty. Absolutely. Historic Deadwood,
famous for its gold rush history. You also have
protected natural areas like Wind Cave National
Park. Which protects both an immense cave system
and one of the largest free -roaming bison herds
in North America. And the Badlands National Park.
We also have to mention the Minuteman Missile
National Historic Site, which preserves a decommissioned
nuclear missile silo. A sobering reminder of
the Cold War history played out on the Great
Plains. Another fascinating site is the Mammoth
Site near Hot Springs, a vast paleontological
dig where a sinkhole trapped and preserved one
of the world's largest concentrations of mammoth
remains. But culturally, nothing compares to
the annual Sturgis motorcycle rally. We need
to put the sheer scale of this event into context
for you. Sturgis is staggering. It's a massive
five -day event every August. In 2015, it drew
over 739 ,000 attendees. Now consider this. The
state's total population at the time was only
about 850 ,000. So for a week, the population
of South Dakota effectively doubles, all concentrated
in the West River region. It creates a massive
logistical challenge and I'm sure a significant
economic windfall for the local communities in
the Black Hills. It's a dramatic, highly concentrated
cultural phenomenon. Shifting to governance,
the economic strategy is inseparable from the
political philosophy. A deep commitment to low
taxes. Our data shows that South Dakota had the
lowest per capita total state tax rate in the
U .S. as of 2005. They achieved this through
a highly restrictive tax structure. The state
levies no personal income taxes, no corporate
income taxes, and no inheritance taxes. Which
creates an attractive environment for both residents,
like the RV travelers, and businesses, like the
financial trust sector. But that means the state
must rely heavily on sales tax. Precisely. The
state sales tax rate is 4 .2%, a critical funding
mechanism. And we saw the vulnerability of that
model when the state faced a structural education
crisis. Right. The sales tax was actually increased
from 4 percent to 4 .5 percent, specifically
to generate funds to finance an increase in teacher
pay. It starkly illustrates the budgetary tightness
imposed by having no income tax. Politically,
South Dakota is overwhelmingly conservative.
It has reliably backed the Republican presidential
candidate in the last 14 elections. And maintains
super majorities in the state legislature. However,
the Native American voting bloc, though geographically
concentrated, holds immense political power in
close races. How significant is that vote? Look
at the 2002 U .S. Senate election. Democratic
Senator Tim Johnson won by a razor thin margin
of only 532 votes. And when you analyze the results,
it was clear that the high turnout and strong
support from voters living on the reservations
provided that margin of victory. So even though
the political environment appears monolithic,
the concentration and mobilization of Native
American voters in West River gives them a critical,
decisive role in statewide elections. It highlights
the internal power dynamics of the state. So
to wrap up, let's look at how South Dakota maintains
connectivity across its vast empty spaces and
how it is defining its cultural future through
education and identity. Connectivity relies heavily
on the interstates, which generally track the
major historical routes. Interstate 90 provides
the crucial east -west link. And Interstate 29
runs north -south, entirely in the eastern portion
of the state. It is the critical economic corridor.
The I -29 corridor, running near Sioux Falls
and Brookings, is consistently linked to higher
rates of population and economic growth. The
history of rail, however, is one of decline.
Massive decline. In the late 19th century, over
400 miles of track were laid. But today, only
1 ,839 active miles remain. predominantly freight
lines and this decline leads to a striking infrastructural
fact south dakota is one of only two contiguous
states that lack amtrak service and it's unique
in one regard according to records it is the
only contiguous state that has never had amtrak
service that just underscores its isolated position
cut off from the national passenger rail network
but for those who embrace the road The state
offers incredibly scenic routes, like the Peter
Norbeck National Scenic Byway in the Black Hills.
And the Native American Scenic Byway, which runs
along the Missouri River and showcases the tribal
lands. Now on education, South Dakota seems committed
to local access. It boasts the highest number
of schools per capita in the United States. But
that commitment to local access comes at a staggering
financial cost for the educators themselves.
In 2008, the average public school teacher salary
was $36 ,674. The lowest in the entire nation.
That is a structural problem that must lead to
retention crises and brain drain. It does. That
is precisely why the state was forced to increase
the sales tax rate, to generate dedicated revenue
to raise teacher pay. It was a direct political
acknowledgement of a failing compensation structure.
Despite the financial struggles, there has been
a powerful mandate for cultural awareness in
education. Right. In 2007, legislation was passed
requiring that all public schools, from preschool
through college, mandate education about Native
American tribal history, culture, and heritage.
Which is a crucial step for cultural understanding,
ensuring every resident learns about the Sioux
history and legacy that defines West River. And
where do students go for higher education? The
largest public university is South Dakota State
University in Brookings. The oldest is the University
of South Dakota in Vermillion, which has the
state's only law school and medical school. And
as a final note on governance, the state capital,
Pierre, is the second smallest state capital
in the U .S., with a population of about 14 ,000.
The culture of South Dakota is a reflection of
its foundational roots, a mix of Indian, rural,
Western, and European influences. You see this
in community celebrations like Check Days and
Tabor, alongside the annual powwows held on the
reservations. And two literary figures stand
out, perfectly capturing the state's duality.
First... Representing the frontier and immigrant
experience is Laura Ingalls Wilder. Her semi
-autobiographical novels, especially The Long
Winter, are foundational texts about growing
up on a homestead near DeSmet. And representing
the deep indigenous cultural voice, we have Black
Elk. He was a medicine man of the Oglala Lakota.
His life story, published as Black Elk Speaks,
is recognized globally as a foundational text
for understanding the 19th century Indian Wars
and Lakota spiritual practice. Together, those
two voices illustrate the contrasting human experiences
that define South Dakota's past. The state has
also produced a surprising number of recognizable
media personalities like Tom Brokaw, Bob Barker
and Mary Hart. Due to its low population, South
Dakota doesn't host major league games, but it
has a robust minor and independent league sports
scene. And historically, the state was late to
join the highest tier of college athletics. It
was. South Dakota was one of the only states
that, for decades, did not have an NCAA Division
I team. That finally changed when South Dakota
State made the shift in 2007, followed by the
University of South Dakota in 2011. A huge cultural
step for the state. But it has produced phenomenal
athletes, especially those tied to the indigenous
culture. we have to highlight Billy Mills. Billy
Mills, a Lakota from the Pine Ridge Indian Reservation,
accomplished one of the greatest upsets in Olympic
history. He won the gold medal in the 10 ,000
-meter event at the 1964 Summer Olympics. To
this day, he is the only American male to ever
win that event. And finally, let's appreciate
the economic and cultural impact of outdoor recreation.
It is massive. Fishing contributes over $224
million and hunting contributes over $303 million
annually. The state bird, the pheasant, is the
most popular target, bringing hunters from all
over the country. And for recreational fitness
enthusiasts, there's the incredible George S.
Mickelson Trail. A 109 -mile rail trail running
through the Black Hills. It's used for cycling,
hiking, and marathons. And its elevation is key.
The entire course runs at an elevation of over
4 ,000 feet, providing a unique challenge and
showcasing the beauty of the sacred mountains.
So, this deep dive into South Dakota reveals
that the state is truly a land of magnificent
and often painful contrasts. The entire narrative
is built on that East River -West River duality,
which separates glaciated farmland from arid
ranching plains and German -Norwegian heritage
from the Sioux Nation. We've seen the extraordinary
historical... depth of the Black Hills conflict,
where the Lakota still refused compensation for
a legal seizure demanding the land's return.
And we learned about the striking contemporary
paradox, systemic crippling poverty on sovereign
reservations existing right alongside a massive
hidden global finance and trust fund industry
in Sioux Falls. And we discovered that the very
identity of the state, its low population and
no income tax policy, has been weaponized not
just to attract business, but to attract residents
who maintain only the most minimal physical commitment
to the place. So as we conclude this deep dive,
consider this. South Dakota's strategy relies
on its low population density and its unique
ability to allow full -time travelers, people
whose identity is defined by mobility, to establish
legal residency with a single overnight stay.
Given the immense economic challenges of maintaining
rural life versus the centralized growth in places
like Sioux Falls, how does the ability to claim
a physical place with virtually no physical commitment
reflect broader modern shifts in identity, mobility,
and community. It leaves us with a provocative
question about the future of place itself in
the American heartland. What is the real definition
of citizenship and commitment in the Mount Rushmore
State today? That's certainly something to ponder
long after this deep dive is done. Thank you
for joining us. Be well and keep learning.