WEBVTT 00:00:00.000 --> 00:00:02.419 Welcome to the Deep Dive. Our mission is always 00:00:02.419 --> 00:00:05.580 the same. Take a complex topic armed with a stack 00:00:05.580 --> 00:00:08.320 of thorough source material and extract the concentrated 00:00:08.320 --> 00:00:10.560 insights you need to be well -informed fast. 00:00:11.019 --> 00:00:14.460 And today we're venturing into a state that is, 00:00:14.500 --> 00:00:16.980 well, it's arguably one of the most misunderstood 00:00:16.980 --> 00:00:20.559 in the union, South Dakota. Yeah, I think for 00:00:20.559 --> 00:00:23.120 most people, their knowledge starts and ends 00:00:23.120 --> 00:00:25.079 with its nickname, the Mount Rushmore State. 00:00:25.219 --> 00:00:27.620 Right. That and maybe its official motto, which 00:00:27.620 --> 00:00:30.019 is, you know, brilliantly ambitious. Under God, 00:00:30.179 --> 00:00:33.119 the people rule. But as we were digging into 00:00:33.119 --> 00:00:36.079 the history, the geography, the economy, one 00:00:36.079 --> 00:00:39.899 fact just became inescapable. This is a state 00:00:39.899 --> 00:00:42.340 that is fundamentally at war with itself. Exactly. 00:00:42.359 --> 00:00:44.939 Our sources define the state by this profound 00:00:44.939 --> 00:00:48.000 central fault line. South Dakota isn't really 00:00:48.000 --> 00:00:51.659 one single entity. No. It's geographically, socially, 00:00:51.880 --> 00:00:55.509 politically, and economically split. right in 00:00:55.509 --> 00:00:57.469 half by the Missouri River. We're really talking 00:00:57.469 --> 00:00:59.689 about two distinct worlds that barely seem to 00:00:59.689 --> 00:01:01.630 recognize each other. They call them East River 00:01:01.630 --> 00:01:04.530 and West River. And the difference between them 00:01:04.530 --> 00:01:07.090 is just massive. It covers everything from the 00:01:07.090 --> 00:01:09.409 climate in which you can grow to the culture 00:01:09.409 --> 00:01:11.969 and, of course, the political leanings. So we 00:01:11.969 --> 00:01:13.689 have assembled a really comprehensive collection 00:01:13.689 --> 00:01:16.209 of resources. We're looking at South Dakota's 00:01:16.209 --> 00:01:20.129 history, its hidden wealth, its persistent poverty, 00:01:20.250 --> 00:01:25.230 and its pretty surprising modern role in... global 00:01:25.230 --> 00:01:27.810 finance it's a fascinating story so our promise 00:01:27.810 --> 00:01:30.329 to you the learner is to unpack this powerful 00:01:30.329 --> 00:01:33.209 duality we're going to move past the famous faces 00:01:33.209 --> 00:01:37.010 carved in granite and reveal the crucial contrasting 00:01:37.010 --> 00:01:40.349 facts that define the real south dakota so let's 00:01:40.349 --> 00:01:42.510 start right at the beginning how this deeply 00:01:42.510 --> 00:01:45.629 divided territory was first settled and ultimately 00:01:45.629 --> 00:01:48.209 claimed human history here goes way back and 00:01:48.209 --> 00:01:50.409 it's marked by constant change and frankly a 00:01:50.409 --> 00:01:52.590 lot of conflict it is if we look at the timeline 00:01:52.590 --> 00:01:54.780 from the sources the earth Earliest evidence 00:01:54.780 --> 00:01:57.280 we have points to Paleo -Indian hunter -gatherers. 00:01:57.280 --> 00:01:59.340 But they actually, you know, they disappear from 00:01:59.340 --> 00:02:02.239 the archaeological record around 5000 BC. So 00:02:02.239 --> 00:02:04.980 there is this huge long period where human presence 00:02:04.980 --> 00:02:07.900 was either sparse or just migratory. What happens 00:02:07.900 --> 00:02:10.379 next? Well, we have to jump forward quite a bit 00:02:10.379 --> 00:02:13.520 to between 500 and 800 AD. Right. That's when 00:02:13.520 --> 00:02:16.219 we see the arrival of the semi -nomadic mound 00:02:16.219 --> 00:02:18.699 builders. They were operating mostly in central 00:02:18.699 --> 00:02:20.930 and eastern South Dakota. So this region right 00:02:20.930 --> 00:02:22.909 around the big river systems has always been 00:02:22.909 --> 00:02:25.990 an area of transition. And often immense conflict. 00:02:26.349 --> 00:02:29.389 That history is immediately underscored by this 00:02:29.389 --> 00:02:33.129 one really chilling historical event that happened 00:02:33.129 --> 00:02:35.750 right near that critical dividing line, the Missouri 00:02:35.750 --> 00:02:38.750 River. You're talking about the Crow Creek Massacre? 00:02:39.050 --> 00:02:41.449 Yeah, in the 14th century. It's a tragic detail. 00:02:41.669 --> 00:02:44.449 At a fortified village near the Missouri, archaeological 00:02:44.449 --> 00:02:47.389 evidence suggests several hundred people, men, 00:02:47.569 --> 00:02:50.349 women, and children were violently killed. It's 00:02:50.349 --> 00:02:53.110 a stark reminder that long before Europeans even 00:02:53.110 --> 00:02:55.930 arrived, the Missouri River Valley was this incredibly 00:02:55.930 --> 00:02:59.030 strategic and contested area. Absolutely. Vital 00:02:59.030 --> 00:03:02.050 for trade, for agriculture. So by the 1500s, 00:03:02.050 --> 00:03:04.530 another major group had settled the valley, the 00:03:04.530 --> 00:03:07.229 Arikara, who are also known as the Ree. And they 00:03:07.229 --> 00:03:09.830 established these large sort of semi -permanent 00:03:09.830 --> 00:03:12.069 villages right along the water, and they dominated 00:03:12.069 --> 00:03:14.310 the trade networks. Their dominance, however, 00:03:14.530 --> 00:03:17.090 it started to wane by the early 19th century. 00:03:17.430 --> 00:03:20.219 That's when the Sioux tribes... the Lakota, Dakota, 00:03:20.360 --> 00:03:23.379 and Dakota, they became ascendant. And the Sioux 00:03:23.379 --> 00:03:25.759 were primarily nomadic buffalo hunters, right? 00:03:25.879 --> 00:03:28.199 Following the great herds across the plains. 00:03:28.360 --> 00:03:29.879 That's right. And they eventually lent their 00:03:29.879 --> 00:03:31.539 name to the state we're talking about today. 00:03:31.759 --> 00:03:34.199 So while the Sioux were establishing their power 00:03:34.199 --> 00:03:36.800 base, the European claims arrived surprisingly 00:03:36.800 --> 00:03:40.259 early. Who exactly planted the first flag? That 00:03:40.259 --> 00:03:44.030 credit goes to the French. In 1743, the Lavrandi 00:03:44.030 --> 00:03:47.030 brothers explored the region and formally claimed 00:03:47.030 --> 00:03:49.370 it for France. That's part of the Louisiana Territory. 00:03:49.389 --> 00:03:51.330 Exactly. And they did this wonderful symbolic 00:03:51.330 --> 00:03:54.310 thing. They buried a lead plate near the site 00:03:54.310 --> 00:03:56.909 of what is now modern -day Pierre, the state 00:03:56.909 --> 00:03:59.949 capital, to physically mark that claim. Burying 00:03:59.949 --> 00:04:01.990 a plate near the future capital? That's a pretty 00:04:01.990 --> 00:04:04.430 potent historical image. But French control was, 00:04:04.569 --> 00:04:07.270 I mean, it was notoriously fickle in the middle 00:04:07.270 --> 00:04:10.039 of the continent, right? It was fleeting. The 00:04:10.039 --> 00:04:13.419 region was transferred to Spain in 1762, becoming 00:04:13.419 --> 00:04:16.040 part of Spanish Louisiana, only to be handed 00:04:16.040 --> 00:04:19.259 back to France in 1802. So this constant shifting 00:04:19.259 --> 00:04:22.300 of colonial claims really shows just how lightly 00:04:22.300 --> 00:04:24.920 populated and remotely governed the area was. 00:04:25.079 --> 00:04:27.139 Yeah, it was just a political pawn in European 00:04:27.139 --> 00:04:30.000 struggles. Yeah. Until the next great power arrived 00:04:30.000 --> 00:04:32.100 on the scene. And that power, of course, was 00:04:32.100 --> 00:04:34.620 the United States, which arrived in a big way 00:04:34.620 --> 00:04:37.699 with the 1803 Louisiana Purchase. Which encompassed 00:04:37.699 --> 00:04:40.240 most of what would become South Dakota. And almost 00:04:40.240 --> 00:04:42.680 immediately, President Thomas Jefferson commissioned 00:04:42.680 --> 00:04:45.420 the Lewis and Clark Expedition to go out and 00:04:45.420 --> 00:04:48.259 map this enormous new territory. And their detailed 00:04:48.259 --> 00:04:50.819 accounts, you know, they laid the practical groundwork 00:04:50.819 --> 00:04:53.680 for American expansion westward. So when does 00:04:53.680 --> 00:04:56.509 American settlement really begin? Continuous 00:04:56.509 --> 00:04:59.329 American settlement is generally dated from 1817 00:04:59.329 --> 00:05:02.009 with the establishment of a really critical fur 00:05:02.009 --> 00:05:04.889 trading post at present -day Fort Pierre. Strategically 00:05:04.889 --> 00:05:07.569 located right on the Missouri River. But the 00:05:07.569 --> 00:05:09.829 acquisition of land from the indigenous inhabitants, 00:05:10.170 --> 00:05:12.689 that was the real accelerant. And the critical 00:05:12.689 --> 00:05:15.589 turning point in that was the 1858 Treaty. Correct. 00:05:15.629 --> 00:05:18.870 In that treaty, the Yankton Sioux ceded a massive 00:05:18.870 --> 00:05:21.550 amount of territory, most of what is now eastern 00:05:21.550 --> 00:05:24.350 South Dakota to the United States. And that strategic 00:05:24.350 --> 00:05:27.009 move opened up the fertile East River region 00:05:27.009 --> 00:05:29.610 to development. And land speculators did not 00:05:29.610 --> 00:05:32.569 waste any time. The sources tell us Sioux Falls 00:05:32.569 --> 00:05:36.829 was founded in 1856 and Yankton in 1859. So these 00:05:36.829 --> 00:05:39.389 settlements really demonstrated the intent to 00:05:39.389 --> 00:05:42.180 develop the eastern plains aggressively. This 00:05:42.180 --> 00:05:44.500 momentum led directly to the establishment of 00:05:44.500 --> 00:05:47.600 the Dakota Territory in 1861, which was initially 00:05:47.600 --> 00:05:50.620 huge. It had parts of modern -day Montana and 00:05:50.620 --> 00:05:53.160 Wyoming in it. But what truly supercharged the 00:05:53.160 --> 00:05:55.879 population was, well, it was infrastructure and 00:05:55.879 --> 00:05:57.899 federal incentive. You're talking about the Dakota 00:05:57.899 --> 00:06:00.439 boom. Exactly. What were the key ingredients 00:06:00.439 --> 00:06:02.759 that made that boom possible? Well, the first 00:06:02.759 --> 00:06:04.899 was the federal government's policy of the Homestead 00:06:04.899 --> 00:06:07.339 Acts, offering free land to settlers who were 00:06:07.339 --> 00:06:09.459 willing to work it. And the second was the arrival 00:06:09.459 --> 00:06:12.000 of the railway. A vital eastern railway link 00:06:12.000 --> 00:06:15.439 reached Yankton in 1873. So now you had this 00:06:15.439 --> 00:06:18.139 influx of settlers, mostly German and Scandinavian, 00:06:18.279 --> 00:06:20.540 pouring into the East River region because they 00:06:20.540 --> 00:06:22.860 could farm the land and then ship their produce 00:06:22.860 --> 00:06:25.779 to eastern markets. It sounds like the East River 00:06:25.779 --> 00:06:28.579 identity agricultural. connected to the Midwest, 00:06:28.800 --> 00:06:31.220 was literally forged by that railway spike and 00:06:31.220 --> 00:06:34.699 the Homestead Act. It was. But as that boom pushed 00:06:34.699 --> 00:06:38.040 west toward the mountains, the historical trajectory 00:06:38.040 --> 00:06:42.180 became tragic. This is the moment where we have 00:06:42.180 --> 00:06:44.439 to confront the central historical wound of the 00:06:44.439 --> 00:06:48.000 state. Right. In 1874, a military expedition 00:06:48.000 --> 00:06:50.819 led by George A. Custer confirmed the presence 00:06:50.819 --> 00:06:53.579 of gold in the Black Hills. And Custer's expedition 00:06:53.579 --> 00:06:56.019 wasn't just a simple exploration, was it? It 00:06:56.019 --> 00:06:58.839 was a direct and really a deliberate violation 00:06:58.839 --> 00:07:02.379 of an existing solemn treaty. Absolutely. We 00:07:02.379 --> 00:07:04.839 have to emphasize the gravity of the 1868 Treaty 00:07:04.839 --> 00:07:07.519 of Laramie. That treaty explicitly guaranteed 00:07:07.519 --> 00:07:10.079 the entire western half of present -day South 00:07:10.079 --> 00:07:12.819 Dakota to the Lakota people. So the Great Sioux 00:07:12.819 --> 00:07:15.220 Reservation, including the Sacred Black Hills? 00:07:15.459 --> 00:07:17.699 Everything. Custer's presence, which was authorized 00:07:17.699 --> 00:07:19.639 by the U .S. government, was a blatant violation 00:07:19.639 --> 00:07:21.360 of that agreement. And what happened when Custer 00:07:21.360 --> 00:07:24.300 confirmed there was gold? An immediate uncontrolled 00:07:24.300 --> 00:07:27.300 land invasion. Thousands of miners and prospectors 00:07:27.300 --> 00:07:29.560 flooded into the Sacred Black Hills, completely 00:07:29.560 --> 00:07:32.240 ignoring the treaty rights. And when the Sioux, 00:07:32.339 --> 00:07:35.699 quite reasonably, declined to sell or grant mining 00:07:35.699 --> 00:07:37.860 rights to the U .S. government? War broke out. 00:07:37.959 --> 00:07:40.939 So the U .S. broke its own treaty. sparked a 00:07:40.939 --> 00:07:43.639 conflict to protect illegal settlers. And when 00:07:43.639 --> 00:07:46.079 the U .S. military ultimately prevailed, they 00:07:46.079 --> 00:07:48.560 just dissolved the Great Sioux Reservation. That's 00:07:48.560 --> 00:07:51.040 the bitter truth. The reservation was broken 00:07:51.040 --> 00:07:54.980 up into five smaller much less desirable reservations, 00:07:55.439 --> 00:07:58.839 forcing the Lakota onto marginal lands. And the 00:07:58.839 --> 00:08:01.000 consequences of this action aren't just historical 00:08:01.000 --> 00:08:03.800 footnotes. They are very much alive today. Absolutely. 00:08:03.959 --> 00:08:05.819 Especially when you look at the 1980 Supreme 00:08:05.819 --> 00:08:08.420 Court ruling. Many people might not understand 00:08:08.420 --> 00:08:10.779 the significance of the Lakota's reaction to 00:08:10.779 --> 00:08:13.759 that ruling. So in 1980, the Supreme Court ruled 00:08:13.759 --> 00:08:15.959 that the U .S. government had illegally seized 00:08:15.959 --> 00:08:18.759 the Black Hills and Congress and the court ordered 00:08:18.759 --> 00:08:21.649 that compensation be paid. Critically, the Lakota 00:08:21.649 --> 00:08:24.790 nation still refuses to accept that money. Why 00:08:24.790 --> 00:08:27.529 refuse what has now grown into a multi -billion 00:08:27.529 --> 00:08:29.769 dollar payment? Because accepting the money would 00:08:29.769 --> 00:08:32.190 legally extinguish their claim to the Black Hills. 00:08:32.350 --> 00:08:34.710 From the perspective of the Lakota, accepting 00:08:34.710 --> 00:08:37.230 compensation would be like legalizing the theft 00:08:37.230 --> 00:08:39.860 of their sacred ancestral land. So they insist 00:08:39.860 --> 00:08:42.019 on the return of the land itself, not a cash 00:08:42.019 --> 00:08:44.279 payout. Exactly. It's one of the longest running, 00:08:44.379 --> 00:08:47.100 deepest cultural and political conflicts in modern 00:08:47.100 --> 00:08:49.440 American history. It just demonstrates that the 00:08:49.440 --> 00:08:53.059 wounds of 1874 are still wide open. That level 00:08:53.059 --> 00:08:55.419 of principled resistance really speaks volumes 00:08:55.419 --> 00:08:58.639 about the value that land holds. And this chapter 00:08:58.639 --> 00:09:01.419 of intense conflict tragically concludes in the 00:09:01.419 --> 00:09:03.759 19th century with the Wounded Knee Massacre. 00:09:03.940 --> 00:09:07.519 Yeah. On December 29, 1890, On the Pine Ridge 00:09:07.519 --> 00:09:10.200 Indian Reservation, the conflict reached its 00:09:10.200 --> 00:09:13.000 horrific climax. The U .S. Army killed at least 00:09:13.000 --> 00:09:16.240 146 Sioux, including many women and children, 00:09:16.379 --> 00:09:19.639 alongside 31 U .S. soldiers. This event is cited 00:09:19.639 --> 00:09:21.779 as the last major armed conflict between the 00:09:21.779 --> 00:09:23.970 U .S. and the Lakota Sioux Nation. And it left 00:09:23.970 --> 00:09:25.889 an indelible mark on the state's relationship 00:09:25.889 --> 00:09:28.669 with its indigenous population. So moving from 00:09:28.669 --> 00:09:31.169 the battlefield to the political arena, by the 00:09:31.169 --> 00:09:34.009 late 1880s, the huge Dakota Territory was pushing 00:09:34.009 --> 00:09:36.570 for statehood, but internal friction demanded 00:09:36.570 --> 00:09:39.990 it be divided. And the political dissatisfaction 00:09:39.990 --> 00:09:43.250 was primarily geographic. Right. The southern 00:09:43.250 --> 00:09:45.830 half was more populated and had different agricultural 00:09:45.830 --> 00:09:48.289 interests than the north. But there was also 00:09:48.289 --> 00:09:51.210 a powerful political motivation at play back 00:09:51.210 --> 00:09:53.659 in Washington. What was the political incentive 00:09:53.659 --> 00:09:57.320 for splitting one territory into two? Well, creating 00:09:57.320 --> 00:09:59.820 four new Republican senators instead of just 00:09:59.820 --> 00:10:02.740 two from one large territory. Since the Dakota 00:10:02.740 --> 00:10:05.340 Territory was reliably Republican at the time, 00:10:05.460 --> 00:10:07.860 this was a clear advantage for the party controlling 00:10:07.860 --> 00:10:10.340 Congress. So they rushed the creation of two 00:10:10.340 --> 00:10:13.440 states, even while ignoring the... You know, 00:10:13.440 --> 00:10:16.000 the awkward fact that the issue of tribal land 00:10:16.000 --> 00:10:18.559 rights in the West River area was far from resolved. 00:10:18.779 --> 00:10:21.360 Precisely. After territory residents voted for 00:10:21.360 --> 00:10:23.460 the division, Congress authorized the creation 00:10:23.460 --> 00:10:26.279 of the two Dakotas, plus Montana and Washington. 00:10:26.519 --> 00:10:28.600 And the moment of official statehood arrived 00:10:28.600 --> 00:10:31.769 on November 2, 1889. Which brings us to that 00:10:31.769 --> 00:10:34.009 marvelous piece of political theater. Right. 00:10:34.129 --> 00:10:36.590 South Dakota and North Dakota entered the union 00:10:36.590 --> 00:10:39.830 simultaneously, becoming the 39th and 40th states. 00:10:39.990 --> 00:10:42.190 And to prevent anyone from claiming superiority 00:10:42.190 --> 00:10:44.990 or political precedence, President Benjamin Harrison, 00:10:45.169 --> 00:10:47.990 a Republican, famously shuffled the two statehood 00:10:47.990 --> 00:10:50.330 papers before signing them. So he signed both, 00:10:50.610 --> 00:10:53.320 but the order was unrecorded. No one knows to 00:10:53.320 --> 00:10:55.440 this day which one was first. It's a fantastic 00:10:55.440 --> 00:10:58.340 historical detail, but it really symbolizes something 00:10:58.340 --> 00:11:01.480 deeper than just a political game. It represents 00:11:01.480 --> 00:11:04.759 a state born out of a strategic political decision, 00:11:04.980 --> 00:11:08.960 a rushed, pragmatic move that cemented its dual 00:11:08.960 --> 00:11:11.779 identity right from day one. That political and 00:11:11.779 --> 00:11:14.720 historical division is so deeply rooted in the 00:11:14.720 --> 00:11:17.399 physical reality of the land. Now that we understand 00:11:17.399 --> 00:11:19.620 the foundations, let's dive into the geographical 00:11:19.620 --> 00:11:22.399 facts that maintain this deep East River -West 00:11:22.399 --> 00:11:25.299 River split. We really can't overstate the Missouri 00:11:25.299 --> 00:11:27.700 River's role here. It's the spine of the state, 00:11:27.879 --> 00:11:30.519 but it effectively bisects South Dakota into 00:11:30.519 --> 00:11:33.379 two geographically and socially distinct halves. 00:11:33.659 --> 00:11:35.679 And this leads to something of an identity crisis. 00:11:36.000 --> 00:11:38.399 The U .S. Census Bureau considers South Dakota 00:11:38.399 --> 00:11:40.679 part of the Midwest based on... the East River's 00:11:40.679 --> 00:11:43.159 identity. But when you cross the Missouri, West 00:11:43.159 --> 00:11:46.360 River culture, the economy, the landscape, it 00:11:46.360 --> 00:11:49.100 all aligns far more closely with the West. Yeah, 00:11:49.139 --> 00:11:51.820 with ranching, resource extraction, and those 00:11:51.820 --> 00:11:54.639 rugged, arid plains. And we're talking about 00:11:54.639 --> 00:11:57.600 a massive land area, the 17th largest state in 00:11:57.600 --> 00:12:00.730 the country. Yet. It ranks as the fifth least 00:12:00.730 --> 00:12:03.570 populous and the fifth least densely populated. 00:12:04.429 --> 00:12:07.370 Vocation, not population, really dictates the 00:12:07.370 --> 00:12:09.269 politics and the culture here. That's a great 00:12:09.269 --> 00:12:12.090 way to put it. The state is vast and sparsely 00:12:12.090 --> 00:12:14.889 populated. For a tangible sense of that, the 00:12:14.889 --> 00:12:18.629 center of this sparse population is an unincorporated 00:12:18.629 --> 00:12:21.570 community. Gann Valley. Which is the county seat 00:12:21.570 --> 00:12:23.970 of Buffalo County. That just confirms that even 00:12:23.970 --> 00:12:26.450 the political centers lean heavily into the remote 00:12:26.450 --> 00:12:30.029 reality of the Great Plains. Absolutely. So let's 00:12:30.029 --> 00:12:31.929 look at why these two halves are so fundamentally 00:12:31.929 --> 00:12:34.129 different, starting with the area east of the 00:12:34.129 --> 00:12:36.190 river. Ace River, South Dakota is defined by 00:12:36.190 --> 00:12:38.889 the legacy of glaciation. It's generally characterized 00:12:38.889 --> 00:12:41.809 by higher precipitation and lower, more rolling 00:12:41.809 --> 00:12:44.090 topography than the West. And that shaping force 00:12:44.090 --> 00:12:46.710 was quite recent, geologically speaking. The 00:12:46.710 --> 00:12:48.870 landscape here is covered by the youngest rock 00:12:48.870 --> 00:12:51.330 layers and sediments in the state. Right, deposited 00:12:51.330 --> 00:12:54.070 during successive periods of glaciation in the 00:12:54.070 --> 00:12:56.970 Pleistocene Epoch. Which lasted until about 12 00:12:56.970 --> 00:12:59.870 ,000 years ago. When those massive ice sheets 00:12:59.870 --> 00:13:02.529 retreated, they scraped and dropped what geologists 00:13:02.529 --> 00:13:05.889 call till a rich, fertile mix of rock and soil. 00:13:06.409 --> 00:13:08.490 So the glaciers weren't just destructive, they 00:13:08.490 --> 00:13:11.230 were also highly beneficial, creating this agricultural 00:13:11.230 --> 00:13:14.509 heartland. Exactly. And within this East River 00:13:14.509 --> 00:13:17.350 area, we find these distinct geographical provinces. 00:13:17.850 --> 00:13:19.909 First, you have the Coteau de Prairie, which 00:13:19.909 --> 00:13:22.029 is a high, elevated plateau that escaped the 00:13:22.029 --> 00:13:24.090 latest glaciation. Creating excellent drainage. 00:13:24.350 --> 00:13:26.830 Right. Then there's the dissected Till Plains, 00:13:26.870 --> 00:13:29.009 which has those rolling hills and the incredibly 00:13:29.009 --> 00:13:31.669 fertile soil, making it prime for crop production. 00:13:31.950 --> 00:13:34.110 And finally, the James River Valley, which is 00:13:34.110 --> 00:13:37.470 a low, flat stretch. Yeah, and it's highly eroded 00:13:37.470 --> 00:13:40.029 and often marshy. The James River flows really 00:13:40.029 --> 00:13:43.090 sluggishly south. So East River is this mosaic 00:13:43.090 --> 00:13:46.389 of fertile, glacially modified landscapes, perfect 00:13:46.389 --> 00:13:49.029 for the major crops we'll discuss later, corn 00:13:49.029 --> 00:13:51.370 and soybeans. Now cross the Missouri and you 00:13:51.370 --> 00:13:53.509 encounter what feels like a physical wall that 00:13:53.509 --> 00:13:56.240 separates the state. West of the river, we are 00:13:56.240 --> 00:13:58.740 firmly on the Great Plains. The landscape shifts 00:13:58.740 --> 00:14:02.039 immediately. It is noticeably more arid, more 00:14:02.039 --> 00:14:05.340 rugged, and defined by erosion. You find vast 00:14:05.340 --> 00:14:09.159 rolling hills, sweeping plains, deep ravines, 00:14:09.159 --> 00:14:12.460 and the iconic buttes. Those steep, flat -topped 00:14:12.460 --> 00:14:14.399 hills that just characterize the American West. 00:14:14.620 --> 00:14:16.720 And the sources single out the Badlands as a 00:14:16.720 --> 00:14:19.480 prime example of this environment. What makes 00:14:19.480 --> 00:14:22.539 the Badlands so geologically spectacular? Well, 00:14:22.580 --> 00:14:24.620 the Badlands are spectacular because they are 00:14:24.620 --> 00:14:27.580 a visible record of deep time. They are, of course, 00:14:27.659 --> 00:14:30.240 formed by intense erosion of clay and sand layers. 00:14:30.519 --> 00:14:33.019 But those layers contain marine skeletons from 00:14:33.019 --> 00:14:35.779 an ancient shallow sea that covered the entire 00:14:35.779 --> 00:14:38.299 region millions of years ago. And it's mixed 00:14:38.299 --> 00:14:40.899 with volcanic ash carried by wind from Western 00:14:40.899 --> 00:14:43.240 eruptions. So a visitor is essentially walking 00:14:43.240 --> 00:14:45.379 through a record of ancient oceans and distant 00:14:45.379 --> 00:14:48.419 volcanoes, all exposed by modern weather. It's 00:14:48.419 --> 00:14:50.529 a harsh environment. Difficult for large scale 00:14:50.529 --> 00:14:52.669 agriculture. Which explains why the West River 00:14:52.669 --> 00:14:55.169 economy is historically centered on ranching 00:14:55.169 --> 00:14:57.970 rather than cropping. Exactly. But standing apart 00:14:57.970 --> 00:15:00.049 from the rugged badlands are the Black Hills, 00:15:00.210 --> 00:15:02.809 a massive island like mountain range in the southwest 00:15:02.809 --> 00:15:05.669 corner. They may be low mountains, but their 00:15:05.669 --> 00:15:09.549 significance historically, culturally and geographically 00:15:09.549 --> 00:15:12.230 is immense. Culturally, they are sacred lands 00:15:12.230 --> 00:15:15.070 to the Sioux. Geographically, they represent 00:15:15.070 --> 00:15:18.320 a continental high point. Black Elk Peak. which 00:15:18.320 --> 00:15:22.139 was long known as Harney Peak, stands at 7 ,242 00:15:22.139 --> 00:15:24.320 feet. This makes it the highest point in the 00:15:24.320 --> 00:15:26.860 United States east of the Rocky Mountains. That 00:15:26.860 --> 00:15:29.779 is an enormous geographic marker that few people 00:15:29.779 --> 00:15:32.679 associate with South Dakota. And how old is the 00:15:32.679 --> 00:15:34.740 geological structure of the Black Hills compared 00:15:34.740 --> 00:15:36.620 to the rest of the state? Oh, they're ancient. 00:15:37.120 --> 00:15:39.639 While the East River is covered in young glacial 00:15:39.639 --> 00:15:42.269 till, The central core of the Black Hills is 00:15:42.269 --> 00:15:45.070 formed of 2 billion -year -old Precambrian formations. 00:15:45.330 --> 00:15:48.769 The absolute oldest, deepest rocks in the entire 00:15:48.769 --> 00:15:51.669 state. That's a staggering age difference. And 00:15:51.669 --> 00:15:54.210 the outer ring is composed of Paleozoic formations, 00:15:54.649 --> 00:15:56.970 primarily limestone. Which were deposited when 00:15:56.970 --> 00:15:59.570 the area was the shoreline of that ancient inland 00:15:59.570 --> 00:16:01.789 sea. Essentially, the Black Hills are a huge 00:16:01.789 --> 00:16:04.549 geological dome where the oldest rocks were pushed 00:16:04.549 --> 00:16:07.450 up, and the younger, though still ancient, layers 00:16:07.450 --> 00:16:10.220 were deposited around the edges. This clash of 00:16:10.220 --> 00:16:13.399 landscapes, glaciated plains, arid plains, and 00:16:13.399 --> 00:16:15.940 mountains, it just guarantees a volatile climate. 00:16:16.139 --> 00:16:19.120 It does. South Dakota experiences a temperate 00:16:19.120 --> 00:16:21.710 continental climate. But the operative word here 00:16:21.710 --> 00:16:24.730 is definitely extremes. The temperature swings 00:16:24.730 --> 00:16:27.269 are extraordinary because there are no large 00:16:27.269 --> 00:16:30.610 bodies of water to moderate them. Exactly. Winters 00:16:30.610 --> 00:16:33.570 are famously cold and dry, with January lows 00:16:33.570 --> 00:16:36.389 averaging close to 10 degrees Fahrenheit. Summers, 00:16:36.389 --> 00:16:39.029 conversely, are warm and semi -humid, with average 00:16:39.029 --> 00:16:41.509 highs around 90. But the record book is shocking. 00:16:41.669 --> 00:16:44.210 We've gone from a high of 120 degrees Fahrenheit 00:16:44.210 --> 00:16:47.649 at Oosta to a low of knackers 58 at McIntosh. 00:16:48.330 --> 00:16:50.360 178 degrees Fahrenheit. swing. That's not just 00:16:50.360 --> 00:16:52.960 weather. That's environmental hostility. It demands 00:16:52.960 --> 00:16:55.220 resilience from everything living there. And 00:16:55.220 --> 00:16:57.419 those extremes bring constant hazards. Eastern 00:16:57.419 --> 00:16:59.860 South Dakota sits firmly in Tornado Alley. It 00:16:59.860 --> 00:17:02.580 averages about 30 tornadoes every year. And conversely, 00:17:02.580 --> 00:17:04.880 in the winter, the state is battered by severe 00:17:04.880 --> 00:17:07.279 blizzards and ice storms. So let's talk about 00:17:07.279 --> 00:17:09.819 life in this challenging environment. The dominant 00:17:09.819 --> 00:17:13.029 biome is temperate grassland. Right. Outside 00:17:13.029 --> 00:17:14.950 of the Black Hills, you have this vast landscape 00:17:14.950 --> 00:17:18.730 of grasses and crops with deciduous trees, cottonwood, 00:17:18.910 --> 00:17:21.470 elm clinging to the river valleys. And it's the 00:17:21.470 --> 00:17:25.029 classic Great Plains fauna. Herds of bison, whitetail 00:17:25.029 --> 00:17:28.690 deer, pronghorn, prairie dogs, and coyotes. And 00:17:28.690 --> 00:17:31.910 the state bird, the ring -necked pheasant. That's 00:17:31.910 --> 00:17:33.710 an introduced species, isn't it? Yes. It was 00:17:33.710 --> 00:17:37.089 introduced from China and has adapted spectacularly. 00:17:37.089 --> 00:17:38.769 It's become central to the state's culture and 00:17:38.769 --> 00:17:41.279 economy, especially in the East River area. And 00:17:41.279 --> 00:17:43.400 inside the Missouri River itself, you find a 00:17:43.400 --> 00:17:46.359 truly ancient species. The prehistoric paddlefish, 00:17:46.599 --> 00:17:48.799 a living relic swimming right through the heart 00:17:48.799 --> 00:17:50.980 of the state. Now contrast that life with the 00:17:50.980 --> 00:17:52.799 Black Hills. The Black Hills are an ecological 00:17:52.799 --> 00:17:55.619 island. Their higher elevation and heavier precipitation 00:17:55.619 --> 00:18:00.000 support dense pine forests, ponderosa. lodgepole 00:18:00.000 --> 00:18:02.759 and spruce. And the wildlife shifts to large 00:18:02.759 --> 00:18:05.500 mammals like elk, bighorn sheep and the elusive 00:18:05.500 --> 00:18:08.000 mountain lion. The shift in elevation completely 00:18:08.000 --> 00:18:10.660 changes the entire ecosystem. And this geographical 00:18:10.660 --> 00:18:13.599 split between East River and West River directly 00:18:13.599 --> 00:18:15.720 informs the state's demographics and its most 00:18:15.720 --> 00:18:18.900 striking socioeconomic paradoxes. It is a place 00:18:18.900 --> 00:18:22.740 of deep cultural roots and deep inequality. So 00:18:22.740 --> 00:18:24.940 let's establish the baseline. South Dakota is 00:18:24.940 --> 00:18:29.549 small by population. estimated at about 924 ,669 00:18:29.549 --> 00:18:33.009 in 2024. That puts it 46th in the U .S. And the 00:18:33.009 --> 00:18:35.809 density is tiny, only 11 .5 people per square 00:18:35.809 --> 00:18:38.269 mile. Yet within those sparse numbers, there's 00:18:38.269 --> 00:18:40.329 a remarkable public health statistic that stands 00:18:40.329 --> 00:18:43.390 out immediately. South Dakota boasts the lowest 00:18:43.390 --> 00:18:46.470 drug overdose death rate in the U .S. In 2022, 00:18:46.789 --> 00:18:51.150 it was 11 .3 per 100 ,000. That is a critical 00:18:51.150 --> 00:18:53.680 data point. Despite the isolation and the economic 00:18:53.680 --> 00:18:55.839 hardships faced in certain regions, which often 00:18:55.839 --> 00:18:57.880 correlate with higher rates of substance abuse, 00:18:58.339 --> 00:19:00.420 South Dakota maintains a significantly lower 00:19:00.420 --> 00:19:02.460 rate than the national average. It speaks to 00:19:02.460 --> 00:19:04.660 either strong community support or lower prescription 00:19:04.660 --> 00:19:07.000 rates or some other protective factors. Now let's 00:19:07.000 --> 00:19:09.000 look at the cultural composition. The overall 00:19:09.000 --> 00:19:10.940 racial breakdown shows the majority is white. 00:19:11.259 --> 00:19:14.880 at 84 .2%, but the American Indian and Alaskan 00:19:14.880 --> 00:19:17.759 Native population is substantial at 8 .5%. And 00:19:17.759 --> 00:19:21.299 that 8 .5 % is misleadingly uniform. When you 00:19:21.299 --> 00:19:23.579 look at ancestry, the East River's heritage is 00:19:23.579 --> 00:19:28.279 stark. It is. 40 .7 % German ancestry and 15 00:19:28.279 --> 00:19:32.079 .3 % Norwegian. These German -Americans dominate 00:19:32.079 --> 00:19:34.859 the cultural and political landscape east of 00:19:34.859 --> 00:19:36.930 the Missouri. But the closer you get to the Black 00:19:36.930 --> 00:19:39.289 Hills, the demographics just flip, confirming 00:19:39.289 --> 00:19:42.009 the duality. Absolutely. The Lakota, Dakota, 00:19:42.250 --> 00:19:44.450 and Lakota Sioux are predominant in several West 00:19:44.450 --> 00:19:46.990 River counties, where they can make up 20 % of 00:19:46.990 --> 00:19:49.210 the entire West River population. Nationally, 00:19:49.210 --> 00:19:51.309 South Dakota has the third highest proportion 00:19:51.309 --> 00:19:54.230 of Native Americans, behind only Alaska and New 00:19:54.230 --> 00:19:56.369 Mexico. It's a profoundly important cultural 00:19:56.369 --> 00:19:59.329 center for the Sioux Nation. And we also find 00:19:59.329 --> 00:20:01.990 a very specific and unique cultural pocket in 00:20:01.990 --> 00:20:04.589 South Dakota. The Hutterites. Right. South Dakota 00:20:04.589 --> 00:20:06.450 actually has the nation's largest population 00:20:06.450 --> 00:20:09.130 of Hutterites. A communal Anabaptist group. They 00:20:09.130 --> 00:20:12.150 emigrated in 1874 from German -speaking parts 00:20:12.150 --> 00:20:14.569 of the Russian Empire and maintained these self 00:20:14.569 --> 00:20:17.150 -sufficient communal farm colonies. So a deeply 00:20:17.150 --> 00:20:19.690 private, distinct cultural group that contributes 00:20:19.690 --> 00:20:21.950 uniquely to the state's German heritage, but 00:20:21.950 --> 00:20:23.710 stands apart because of their communal lifestyle. 00:20:24.049 --> 00:20:26.910 We have to move now into the core of the socioeconomic 00:20:26.910 --> 00:20:30.509 paradox. Five counties in South Dakota exist 00:20:30.509 --> 00:20:33.109 wholly within the boundaries of sovereign Indian 00:20:33.109 --> 00:20:35.769 reservations. And the economic situation on these 00:20:35.769 --> 00:20:39.809 lands is one of systemic, profound poverty. The 00:20:39.809 --> 00:20:42.430 isolation and the marginal quality of the land 00:20:42.430 --> 00:20:45.089 allocated to the reservations after the breakup 00:20:45.089 --> 00:20:47.869 of the Great Sioux Reservation. It created a 00:20:47.869 --> 00:20:51.109 perfect storm for economic hardship. The sources 00:20:51.109 --> 00:20:53.289 illustrate this with devastating clarity. Can 00:20:53.289 --> 00:20:55.470 you give us a sense of the scale of the struggle? 00:20:55.630 --> 00:20:57.849 Well, consider Zimbabwe County. home to part 00:20:57.849 --> 00:21:00.950 of the Cheyenne River Reservation. In 2009, it 00:21:00.950 --> 00:21:02.910 was officially the poorest county in the entire 00:21:02.910 --> 00:21:05.410 nation. The poorest county in the U .S. And the 00:21:05.410 --> 00:21:08.289 unemployment rate in specific communities, like 00:21:08.289 --> 00:21:10.369 Fort Thompson on the Crow Creek Reservation, 00:21:10.549 --> 00:21:14.589 can soar up to 70%. 70%. That's higher than what 00:21:14.589 --> 00:21:16.650 many nations experienced during their worst economic 00:21:16.650 --> 00:21:19.710 depressions. It speaks to a severe lack of viable 00:21:19.710 --> 00:21:22.170 economic infrastructure. And the hardship extends 00:21:22.170 --> 00:21:24.960 to basic necessities. According to documentation, 00:21:25.279 --> 00:21:29.039 21 % of households lack basic plumbing or functional 00:21:29.039 --> 00:21:31.220 kitchen appliances. And what about connectivity? 00:21:31.660 --> 00:21:35.039 Well, a 1995 study showed that 58 % of homes 00:21:35.039 --> 00:21:37.640 on the Kindridge Indian Reservation didn't even 00:21:37.640 --> 00:21:40.779 have a telephone. While technology has obviously 00:21:40.779 --> 00:21:43.680 changed, the challenge of connectivity and infrastructure 00:21:43.680 --> 00:21:46.660 remains immense. And this structural hardship 00:21:46.660 --> 00:21:49.220 affects their ability to leverage potential economic 00:21:49.220 --> 00:21:52.849 drivers, like gaming. Precisely. Unlike tribes 00:21:52.849 --> 00:21:55.210 in states closer to major metropolitan areas, 00:21:55.470 --> 00:21:58.390 South Dakota's tribes are highly isolated. This 00:21:58.390 --> 00:22:00.450 makes it really difficult to generate significant 00:22:00.450 --> 00:22:02.609 revenue from casinos. They just don't have the 00:22:02.609 --> 00:22:04.869 population centers nearby to draw from. Right. 00:22:04.950 --> 00:22:08.069 The profound economic disparity between the reservations 00:22:08.069 --> 00:22:10.390 and the booming urban centers like Sioux Falls 00:22:10.390 --> 00:22:13.210 is the single greatest social challenge facing 00:22:13.210 --> 00:22:15.809 the state. How does this dual demographic reality 00:22:15.809 --> 00:22:18.490 manifest in the state's approach to language? 00:22:19.319 --> 00:22:22.200 Historically, a 1995 law established English 00:22:22.200 --> 00:22:24.759 as the common language of the state. Okay. However, 00:22:24.980 --> 00:22:27.180 recognizing the deep cultural importance of the 00:22:27.180 --> 00:22:29.779 indigenous population, the state made a critical 00:22:29.779 --> 00:22:32.220 legal shift in 2019. And what was that change? 00:22:32.480 --> 00:22:35.299 Since 2019, the language of the Great Sioux Nation 00:22:35.769 --> 00:22:38.809 the Dakota, Lakota, and Makota dialects, has 00:22:38.809 --> 00:22:41.210 been recognized as the state's official indigenous 00:22:41.210 --> 00:22:43.950 language. Which is a profound affirmation of 00:22:43.950 --> 00:22:46.829 cultural survival and identity, giving the indigenous 00:22:46.829 --> 00:22:50.250 languages a unique legal status. It is. The sheer 00:22:50.250 --> 00:22:52.549 proportion of people speaking an indigenous language 00:22:52.549 --> 00:22:55.009 actually surpasses the number of Spanish speakers 00:22:55.009 --> 00:22:57.309 in the state. Which highlights the strength and 00:22:57.309 --> 00:22:59.150 continuity of the Native American population. 00:22:59.670 --> 00:23:02.329 Now, South Dakota encapsulates the classic Great 00:23:02.329 --> 00:23:05.519 Plains demographic struggle. The battle against 00:23:05.519 --> 00:23:08.420 rural flight. Right. Mechanization and consolidation 00:23:08.420 --> 00:23:11.359 of agriculture mean fewer people are needed to 00:23:11.359 --> 00:23:13.960 farm huge tracts of land. And the result is a 00:23:13.960 --> 00:23:17.119 massive decline in rural populations. 30 counties 00:23:17.119 --> 00:23:19.940 experienced population loss between 1990 and 00:23:19.940 --> 00:23:22.420 2000 alone. And this has a direct impact on the 00:23:22.420 --> 00:23:24.420 demographic profile of those remaining counties. 00:23:24.640 --> 00:23:27.519 You see rising median ages. In 24 counties, over 00:23:27.519 --> 00:23:31.140 20 % of the population is age 65 or older. The 00:23:31.140 --> 00:23:33.079 young people have to move to find employment. 00:23:33.259 --> 00:23:35.880 But this flight isn't universal. We see areas 00:23:35.880 --> 00:23:38.200 of explosive growth that almost cancel out the 00:23:38.200 --> 00:23:40.819 rural losses. Growth is heavily concentrated 00:23:40.819 --> 00:23:43.920 in the Sioux Falls area. Lincoln County became 00:23:43.920 --> 00:23:45.920 one of the fastest growing counties nationally 00:23:45.920 --> 00:23:49.279 in 2010. The Black Hills area around Rabbit City 00:23:49.279 --> 00:23:52.140 also sees significant development. And interestingly, 00:23:52.400 --> 00:23:55.240 many Indian reservations are also seeing population 00:23:55.240 --> 00:23:57.900 increases. Why the growth on the reservations? 00:23:58.339 --> 00:24:00.319 As the reservations assert greater sovereignty 00:24:00.319 --> 00:24:02.759 and cultural identity, many Sioux are returning 00:24:02.759 --> 00:24:05.039 from urban areas, reversing previous migration 00:24:05.039 --> 00:24:08.000 trends. It's a movement seeking to rebuild and 00:24:08.000 --> 00:24:10.259 strengthen the sovereign nations. And now for 00:24:10.259 --> 00:24:12.839 the absolutely brilliant, surprising detail that 00:24:12.839 --> 00:24:15.519 defines South Dakota's unique approach to legal 00:24:15.519 --> 00:24:18.099 identity. The RV residency loophole. This is 00:24:18.099 --> 00:24:20.559 a perfect example of the state leveraging its 00:24:20.559 --> 00:24:23.200 low tax and low density environment for economic 00:24:23.200 --> 00:24:26.519 gain. The mechanism is simple. but revolutionary. 00:24:26.819 --> 00:24:29.339 A one -night stay in South Dakota is the minimum 00:24:29.339 --> 00:24:32.299 required to legally establish residency. A single 00:24:32.299 --> 00:24:34.779 night. For full -time travelers, people who live 00:24:34.779 --> 00:24:36.700 in RVs, or even those who live internationally 00:24:36.700 --> 00:24:39.500 but need a stable U .S. address, South Dakota 00:24:39.500 --> 00:24:42.019 offers unbeatable advantages. No personal income 00:24:42.019 --> 00:24:44.940 tax and no state inheritance tax. So someone 00:24:44.940 --> 00:24:46.839 can drive in, stay one night, get a mailbox, 00:24:47.140 --> 00:24:49.380 register their vehicles, and immediately claim 00:24:49.380 --> 00:24:51.460 the legal and financial benefits of South Dakota 00:24:51.460 --> 00:24:54.619 residency without any long -term physical commitment 00:24:54.619 --> 00:24:56.819 to the place. It effectively turns the state's 00:24:56.819 --> 00:24:59.960 low -density and favorable tax climate into a 00:24:59.960 --> 00:25:02.480 high -value service for highly mobile individuals. 00:25:02.940 --> 00:25:05.380 It's a mechanism for establishing legal identity 00:25:05.380 --> 00:25:08.059 with minimal commitment to the physical place. 00:25:08.380 --> 00:25:11.240 A very modern and surprising economic engine 00:25:11.240 --> 00:25:13.809 for a Great Plains state. The economic story 00:25:13.809 --> 00:25:15.970 of South Dakota is the greatest paradox of all. 00:25:16.150 --> 00:25:18.890 It's a state known for cattle and corn, yet its 00:25:18.890 --> 00:25:21.369 most powerful economic engine today is global 00:25:21.369 --> 00:25:23.950 high finance. Yeah, a massive hidden tax haven. 00:25:24.150 --> 00:25:26.190 Traditionally, the economic output of the state 00:25:26.190 --> 00:25:29.089 has been modest. In 2010, the gross state product 00:25:29.089 --> 00:25:32.450 was $39 .8 billion. Which made it the fifth smallest 00:25:32.450 --> 00:25:35.650 state output. Per capita income is also squarely 00:25:35.650 --> 00:25:38.420 in the middle, around 25th nationally. But those 00:25:38.420 --> 00:25:40.940 overall numbers mask incredible efficiency and 00:25:40.940 --> 00:25:43.279 strategic governance. In 2010, for instance, 00:25:43.579 --> 00:25:46.140 CNBC ranked South Dakota the seventh best state 00:25:46.140 --> 00:25:48.359 in the nation for business. And unemployment 00:25:48.359 --> 00:25:50.599 rates are consistently low, often running below 00:25:50.599 --> 00:25:53.440 the national average. The state runs lean and 00:25:53.440 --> 00:25:56.240 is extremely business friendly. Thanks in large 00:25:56.240 --> 00:25:59.279 part to the low tax environment. But the real 00:25:59.279 --> 00:26:01.720 story isn't the efficiency of traditional industry. 00:26:01.960 --> 00:26:05.279 It's the strategic capture of the financial services 00:26:05.279 --> 00:26:07.759 sector. The largest contributor to the modern 00:26:07.759 --> 00:26:10.279 South Dakota economy is the service industry, 00:26:10.500 --> 00:26:13.519 health care, retail, and above all, finance. 00:26:14.059 --> 00:26:17.339 But how did Sioux Falls, a city on the plains, 00:26:17.640 --> 00:26:20.619 become a global financial hub? It all traces 00:26:20.619 --> 00:26:23.920 back to one brilliant strategic legislative maneuver 00:26:23.920 --> 00:26:27.339 in 1981. The Citibank move. At the time, New 00:26:27.339 --> 00:26:29.480 York had strict caps on the interest rates banks 00:26:29.480 --> 00:26:31.720 could charge credit card holders usury laws. 00:26:32.019 --> 00:26:33.960 And New York banks were starting to feel pinched 00:26:33.960 --> 00:26:36.859 by inflation and competition. Precisely. In 1981, 00:26:37.200 --> 00:26:39.180 South Dakota became the first state in the nation 00:26:39.180 --> 00:26:41.299 to completely eliminate those caps on interest 00:26:41.299 --> 00:26:43.420 rates. This legislative act was revolutionary. 00:26:43.539 --> 00:26:45.920 It created a legal environment where credit card 00:26:45.920 --> 00:26:48.099 issuers could charge whatever interest they wanted 00:26:48.099 --> 00:26:51.220 nationwide. So Citibank, seeking to escape New 00:26:51.220 --> 00:26:53.920 York's restrictive laws, immediately moved its 00:26:53.920 --> 00:26:56.880 credit card operations to Sioux Falls. And this 00:26:56.880 --> 00:26:59.680 wasn't just a move of a few desks. No, this was 00:26:59.680 --> 00:27:02.259 the relocation of a massive, critical business 00:27:02.259 --> 00:27:04.640 function. And many other financial companies 00:27:04.640 --> 00:27:07.180 followed suit, transforming Sioux Falls into 00:27:07.180 --> 00:27:09.420 a major data processing and financial services 00:27:09.420 --> 00:27:12.279 hub almost overnight. But the financial capture 00:27:12.279 --> 00:27:15.369 didn't stop there. It extended into the shadowy 00:27:15.369 --> 00:27:18.309 world of trust funds. Right. South Dakota has 00:27:18.309 --> 00:27:20.210 some of the most favorable trust laws in the 00:27:20.210 --> 00:27:22.650 United States, allowing wealthy individuals, 00:27:22.950 --> 00:27:25.670 foreign and domestic, to create perpetual trusts. 00:27:26.009 --> 00:27:28.609 These trusts can manage assets indefinitely, 00:27:28.829 --> 00:27:31.430 often shielding hundreds of billions of dollars 00:27:31.430 --> 00:27:34.250 from future taxation, creditors and legal claims. 00:27:34.490 --> 00:27:37.109 So while parts of West River struggle with poverty. 00:27:37.549 --> 00:27:40.029 East River Sioux Falls manages hundreds of billions 00:27:40.029 --> 00:27:42.730 of dollars of global wealth, largely because 00:27:42.730 --> 00:27:44.750 of the state's decision to dismantle banking 00:27:44.750 --> 00:27:47.569 regulations decades ago. It is the ultimate paradox. 00:27:47.869 --> 00:27:50.190 The state is simultaneously host to some of the 00:27:50.190 --> 00:27:53.230 nation's deepest economic hardship and a secretive, 00:27:53.230 --> 00:27:55.730 powerful nexus of international wealth management. 00:27:55.970 --> 00:27:58.190 And this sector provides high paying jobs in 00:27:58.190 --> 00:28:00.930 the east, which just solidifies the economic 00:28:00.930 --> 00:28:03.380 disparity across the river. Despite the high 00:28:03.380 --> 00:28:05.980 -tech finance industry, we can't ignore the historical 00:28:05.980 --> 00:28:08.759 and cultural heart of South Dakota, agriculture. 00:28:09.259 --> 00:28:12.299 Agriculture is still vital. It defines the rural 00:28:12.299 --> 00:28:15.180 landscape and culture. But here, too, the East 00:28:15.180 --> 00:28:18.140 River, West River division holds true. East River, 00:28:18.299 --> 00:28:21.740 with its photoglacial till, is the crop, heartland 00:28:21.740 --> 00:28:25.380 corn, soybeans, and wheat. While West River is 00:28:25.380 --> 00:28:27.680 the land of ranching, it's dominated by vast 00:28:27.680 --> 00:28:30.119 cattle and hog operations. And what about energy? 00:28:30.650 --> 00:28:33.710 The state is a major player in agricultural processing. 00:28:34.150 --> 00:28:37.349 It ranks as the sixth leading ethanol -producing 00:28:37.349 --> 00:28:40.910 state, utilizing its vast corn output. And beyond 00:28:40.910 --> 00:28:43.349 agribusiness, the government sector itself is 00:28:43.349 --> 00:28:45.430 critical. Government spending accounts for over 00:28:45.430 --> 00:28:47.970 10 % of the gross state product. And the military 00:28:47.970 --> 00:28:50.289 plays a key role, particularly in the West River 00:28:50.289 --> 00:28:53.089 economy. Ellsworth Air Force Base near Rapid 00:28:53.089 --> 00:28:55.829 City is the state's second largest single employer. 00:28:56.029 --> 00:28:58.130 Defense spending provides essential stability 00:28:58.130 --> 00:29:00.670 to the West River economy, which lacks the dense 00:29:00.670 --> 00:29:03.210 financial presence of Sioux Falls. Moving to 00:29:03.210 --> 00:29:05.789 another crucial sector, tourism has grown into 00:29:05.789 --> 00:29:09.029 a major economic pillar, providing roughly 33 00:29:09.029 --> 00:29:12.650 ,000 jobs and generating billions annually. And 00:29:12.650 --> 00:29:15.210 the gravitational pull is undoubtedly the Black 00:29:15.210 --> 00:29:17.769 Hills. The monumental draws are world famous. 00:29:18.250 --> 00:29:20.630 You have Mount Rushmore, of course, and nearby 00:29:20.630 --> 00:29:24.049 the ongoing, privately funded Crazy Horse Memorial, 00:29:24.329 --> 00:29:26.789 which is designed to dwarf Rushmore in scale. 00:29:27.029 --> 00:29:29.990 And besides the monuments, the area offers incredible 00:29:29.990 --> 00:29:33.150 natural beauty. Absolutely. Historic Deadwood, 00:29:33.269 --> 00:29:36.549 famous for its gold rush history. You also have 00:29:36.549 --> 00:29:38.390 protected natural areas like Wind Cave National 00:29:38.390 --> 00:29:40.990 Park. Which protects both an immense cave system 00:29:40.990 --> 00:29:43.789 and one of the largest free -roaming bison herds 00:29:43.789 --> 00:29:46.289 in North America. And the Badlands National Park. 00:29:46.750 --> 00:29:49.130 We also have to mention the Minuteman Missile 00:29:49.130 --> 00:29:52.089 National Historic Site, which preserves a decommissioned 00:29:52.089 --> 00:29:54.430 nuclear missile silo. A sobering reminder of 00:29:54.430 --> 00:29:56.130 the Cold War history played out on the Great 00:29:56.130 --> 00:29:59.329 Plains. Another fascinating site is the Mammoth 00:29:59.329 --> 00:30:02.289 Site near Hot Springs, a vast paleontological 00:30:02.289 --> 00:30:04.930 dig where a sinkhole trapped and preserved one 00:30:04.930 --> 00:30:07.069 of the world's largest concentrations of mammoth 00:30:07.069 --> 00:30:09.599 remains. But culturally, nothing compares to 00:30:09.599 --> 00:30:12.359 the annual Sturgis motorcycle rally. We need 00:30:12.359 --> 00:30:15.140 to put the sheer scale of this event into context 00:30:15.140 --> 00:30:17.680 for you. Sturgis is staggering. It's a massive 00:30:17.680 --> 00:30:21.259 five -day event every August. In 2015, it drew 00:30:21.259 --> 00:30:25.839 over 739 ,000 attendees. Now consider this. The 00:30:25.839 --> 00:30:27.839 state's total population at the time was only 00:30:27.839 --> 00:30:31.180 about 850 ,000. So for a week, the population 00:30:31.180 --> 00:30:34.259 of South Dakota effectively doubles, all concentrated 00:30:34.259 --> 00:30:36.579 in the West River region. It creates a massive 00:30:36.579 --> 00:30:39.240 logistical challenge and I'm sure a significant 00:30:39.240 --> 00:30:41.480 economic windfall for the local communities in 00:30:41.480 --> 00:30:43.940 the Black Hills. It's a dramatic, highly concentrated 00:30:43.940 --> 00:30:46.220 cultural phenomenon. Shifting to governance, 00:30:46.480 --> 00:30:48.599 the economic strategy is inseparable from the 00:30:48.599 --> 00:30:51.339 political philosophy. A deep commitment to low 00:30:51.339 --> 00:30:54.279 taxes. Our data shows that South Dakota had the 00:30:54.279 --> 00:30:56.839 lowest per capita total state tax rate in the 00:30:56.839 --> 00:30:59.980 U .S. as of 2005. They achieved this through 00:30:59.980 --> 00:31:02.529 a highly restrictive tax structure. The state 00:31:02.529 --> 00:31:05.230 levies no personal income taxes, no corporate 00:31:05.230 --> 00:31:07.970 income taxes, and no inheritance taxes. Which 00:31:07.970 --> 00:31:10.470 creates an attractive environment for both residents, 00:31:10.589 --> 00:31:12.970 like the RV travelers, and businesses, like the 00:31:12.970 --> 00:31:15.309 financial trust sector. But that means the state 00:31:15.309 --> 00:31:18.549 must rely heavily on sales tax. Precisely. The 00:31:18.549 --> 00:31:21.490 state sales tax rate is 4 .2%, a critical funding 00:31:21.490 --> 00:31:24.289 mechanism. And we saw the vulnerability of that 00:31:24.289 --> 00:31:26.829 model when the state faced a structural education 00:31:26.829 --> 00:31:29.529 crisis. Right. The sales tax was actually increased 00:31:29.529 --> 00:31:33.329 from 4 percent to 4 .5 percent, specifically 00:31:33.329 --> 00:31:36.130 to generate funds to finance an increase in teacher 00:31:36.130 --> 00:31:39.089 pay. It starkly illustrates the budgetary tightness 00:31:39.089 --> 00:31:41.970 imposed by having no income tax. Politically, 00:31:42.049 --> 00:31:44.150 South Dakota is overwhelmingly conservative. 00:31:44.750 --> 00:31:47.210 It has reliably backed the Republican presidential 00:31:47.210 --> 00:31:50.049 candidate in the last 14 elections. And maintains 00:31:50.049 --> 00:31:52.589 super majorities in the state legislature. However, 00:31:52.769 --> 00:31:55.289 the Native American voting bloc, though geographically 00:31:55.289 --> 00:31:58.349 concentrated, holds immense political power in 00:31:58.349 --> 00:32:01.369 close races. How significant is that vote? Look 00:32:01.369 --> 00:32:03.980 at the 2002 U .S. Senate election. Democratic 00:32:03.980 --> 00:32:06.619 Senator Tim Johnson won by a razor thin margin 00:32:06.619 --> 00:32:09.960 of only 532 votes. And when you analyze the results, 00:32:10.140 --> 00:32:12.119 it was clear that the high turnout and strong 00:32:12.119 --> 00:32:13.819 support from voters living on the reservations 00:32:13.819 --> 00:32:16.640 provided that margin of victory. So even though 00:32:16.640 --> 00:32:18.500 the political environment appears monolithic, 00:32:18.779 --> 00:32:21.160 the concentration and mobilization of Native 00:32:21.160 --> 00:32:24.400 American voters in West River gives them a critical, 00:32:24.559 --> 00:32:27.920 decisive role in statewide elections. It highlights 00:32:27.920 --> 00:32:30.019 the internal power dynamics of the state. So 00:32:30.019 --> 00:32:32.140 to wrap up, let's look at how South Dakota maintains 00:32:32.140 --> 00:32:35.500 connectivity across its vast empty spaces and 00:32:35.500 --> 00:32:37.720 how it is defining its cultural future through 00:32:37.720 --> 00:32:40.839 education and identity. Connectivity relies heavily 00:32:40.839 --> 00:32:43.460 on the interstates, which generally track the 00:32:43.460 --> 00:32:46.160 major historical routes. Interstate 90 provides 00:32:46.160 --> 00:32:49.099 the crucial east -west link. And Interstate 29 00:32:49.099 --> 00:32:52.200 runs north -south, entirely in the eastern portion 00:32:52.200 --> 00:32:54.599 of the state. It is the critical economic corridor. 00:32:54.819 --> 00:32:57.700 The I -29 corridor, running near Sioux Falls 00:32:57.700 --> 00:32:59.980 and Brookings, is consistently linked to higher 00:32:59.980 --> 00:33:02.119 rates of population and economic growth. The 00:33:02.119 --> 00:33:04.200 history of rail, however, is one of decline. 00:33:04.460 --> 00:33:07.319 Massive decline. In the late 19th century, over 00:33:07.319 --> 00:33:11.099 400 miles of track were laid. But today, only 00:33:11.099 --> 00:33:14.960 1 ,839 active miles remain. predominantly freight 00:33:14.960 --> 00:33:18.039 lines and this decline leads to a striking infrastructural 00:33:18.039 --> 00:33:20.980 fact south dakota is one of only two contiguous 00:33:20.980 --> 00:33:23.920 states that lack amtrak service and it's unique 00:33:23.920 --> 00:33:27.000 in one regard according to records it is the 00:33:27.000 --> 00:33:29.619 only contiguous state that has never had amtrak 00:33:29.619 --> 00:33:32.859 service that just underscores its isolated position 00:33:32.859 --> 00:33:35.299 cut off from the national passenger rail network 00:33:35.299 --> 00:33:38.109 but for those who embrace the road The state 00:33:38.109 --> 00:33:41.170 offers incredibly scenic routes, like the Peter 00:33:41.170 --> 00:33:43.529 Norbeck National Scenic Byway in the Black Hills. 00:33:43.670 --> 00:33:46.130 And the Native American Scenic Byway, which runs 00:33:46.130 --> 00:33:48.450 along the Missouri River and showcases the tribal 00:33:48.450 --> 00:33:51.650 lands. Now on education, South Dakota seems committed 00:33:51.650 --> 00:33:54.210 to local access. It boasts the highest number 00:33:54.210 --> 00:33:56.779 of schools per capita in the United States. But 00:33:56.779 --> 00:33:59.680 that commitment to local access comes at a staggering 00:33:59.680 --> 00:34:01.880 financial cost for the educators themselves. 00:34:02.400 --> 00:34:05.519 In 2008, the average public school teacher salary 00:34:05.519 --> 00:34:10.199 was $36 ,674. The lowest in the entire nation. 00:34:10.400 --> 00:34:12.760 That is a structural problem that must lead to 00:34:12.760 --> 00:34:15.760 retention crises and brain drain. It does. That 00:34:15.760 --> 00:34:18.420 is precisely why the state was forced to increase 00:34:18.420 --> 00:34:21.340 the sales tax rate, to generate dedicated revenue 00:34:21.340 --> 00:34:23.579 to raise teacher pay. It was a direct political 00:34:23.579 --> 00:34:26.099 acknowledgement of a failing compensation structure. 00:34:26.380 --> 00:34:28.739 Despite the financial struggles, there has been 00:34:28.739 --> 00:34:31.099 a powerful mandate for cultural awareness in 00:34:31.099 --> 00:34:34.519 education. Right. In 2007, legislation was passed 00:34:34.519 --> 00:34:37.500 requiring that all public schools, from preschool 00:34:37.500 --> 00:34:40.320 through college, mandate education about Native 00:34:40.320 --> 00:34:43.360 American tribal history, culture, and heritage. 00:34:43.699 --> 00:34:45.880 Which is a crucial step for cultural understanding, 00:34:46.159 --> 00:34:48.440 ensuring every resident learns about the Sioux 00:34:48.440 --> 00:34:51.099 history and legacy that defines West River. And 00:34:51.099 --> 00:34:53.579 where do students go for higher education? The 00:34:53.579 --> 00:34:55.960 largest public university is South Dakota State 00:34:55.960 --> 00:34:59.320 University in Brookings. The oldest is the University 00:34:59.320 --> 00:35:01.559 of South Dakota in Vermillion, which has the 00:35:01.559 --> 00:35:03.730 state's only law school and medical school. And 00:35:03.730 --> 00:35:05.710 as a final note on governance, the state capital, 00:35:05.809 --> 00:35:08.269 Pierre, is the second smallest state capital 00:35:08.269 --> 00:35:11.269 in the U .S., with a population of about 14 ,000. 00:35:11.449 --> 00:35:13.730 The culture of South Dakota is a reflection of 00:35:13.730 --> 00:35:17.070 its foundational roots, a mix of Indian, rural, 00:35:17.250 --> 00:35:19.849 Western, and European influences. You see this 00:35:19.849 --> 00:35:22.050 in community celebrations like Check Days and 00:35:22.050 --> 00:35:25.389 Tabor, alongside the annual powwows held on the 00:35:25.389 --> 00:35:28.250 reservations. And two literary figures stand 00:35:28.250 --> 00:35:31.010 out, perfectly capturing the state's duality. 00:35:31.789 --> 00:35:34.079 First... Representing the frontier and immigrant 00:35:34.079 --> 00:35:37.599 experience is Laura Ingalls Wilder. Her semi 00:35:37.599 --> 00:35:39.639 -autobiographical novels, especially The Long 00:35:39.639 --> 00:35:41.980 Winter, are foundational texts about growing 00:35:41.980 --> 00:35:44.519 up on a homestead near DeSmet. And representing 00:35:44.519 --> 00:35:47.559 the deep indigenous cultural voice, we have Black 00:35:47.559 --> 00:35:50.440 Elk. He was a medicine man of the Oglala Lakota. 00:35:50.599 --> 00:35:53.500 His life story, published as Black Elk Speaks, 00:35:53.599 --> 00:35:56.059 is recognized globally as a foundational text 00:35:56.059 --> 00:35:58.559 for understanding the 19th century Indian Wars 00:35:58.559 --> 00:36:01.489 and Lakota spiritual practice. Together, those 00:36:01.489 --> 00:36:04.250 two voices illustrate the contrasting human experiences 00:36:04.250 --> 00:36:06.909 that define South Dakota's past. The state has 00:36:06.909 --> 00:36:09.369 also produced a surprising number of recognizable 00:36:09.369 --> 00:36:13.210 media personalities like Tom Brokaw, Bob Barker 00:36:13.210 --> 00:36:15.989 and Mary Hart. Due to its low population, South 00:36:15.989 --> 00:36:18.389 Dakota doesn't host major league games, but it 00:36:18.389 --> 00:36:20.809 has a robust minor and independent league sports 00:36:20.809 --> 00:36:23.300 scene. And historically, the state was late to 00:36:23.300 --> 00:36:25.519 join the highest tier of college athletics. It 00:36:25.519 --> 00:36:27.920 was. South Dakota was one of the only states 00:36:27.920 --> 00:36:30.980 that, for decades, did not have an NCAA Division 00:36:30.980 --> 00:36:33.500 I team. That finally changed when South Dakota 00:36:33.500 --> 00:36:36.039 State made the shift in 2007, followed by the 00:36:36.039 --> 00:36:39.559 University of South Dakota in 2011. A huge cultural 00:36:39.559 --> 00:36:42.420 step for the state. But it has produced phenomenal 00:36:42.420 --> 00:36:45.179 athletes, especially those tied to the indigenous 00:36:45.179 --> 00:36:48.630 culture. we have to highlight Billy Mills. Billy 00:36:48.630 --> 00:36:51.730 Mills, a Lakota from the Pine Ridge Indian Reservation, 00:36:51.949 --> 00:36:54.230 accomplished one of the greatest upsets in Olympic 00:36:54.230 --> 00:36:56.570 history. He won the gold medal in the 10 ,000 00:36:56.570 --> 00:36:59.690 -meter event at the 1964 Summer Olympics. To 00:36:59.690 --> 00:37:02.530 this day, he is the only American male to ever 00:37:02.530 --> 00:37:04.849 win that event. And finally, let's appreciate 00:37:04.849 --> 00:37:08.190 the economic and cultural impact of outdoor recreation. 00:37:08.530 --> 00:37:11.829 It is massive. Fishing contributes over $224 00:37:11.829 --> 00:37:15.349 million and hunting contributes over $303 million 00:37:15.349 --> 00:37:18.190 annually. The state bird, the pheasant, is the 00:37:18.190 --> 00:37:20.489 most popular target, bringing hunters from all 00:37:20.489 --> 00:37:22.510 over the country. And for recreational fitness 00:37:22.510 --> 00:37:24.909 enthusiasts, there's the incredible George S. 00:37:24.949 --> 00:37:27.869 Mickelson Trail. A 109 -mile rail trail running 00:37:27.869 --> 00:37:29.889 through the Black Hills. It's used for cycling, 00:37:30.070 --> 00:37:32.409 hiking, and marathons. And its elevation is key. 00:37:32.840 --> 00:37:35.179 The entire course runs at an elevation of over 00:37:35.179 --> 00:37:38.480 4 ,000 feet, providing a unique challenge and 00:37:38.480 --> 00:37:40.519 showcasing the beauty of the sacred mountains. 00:37:40.820 --> 00:37:43.460 So, this deep dive into South Dakota reveals 00:37:43.460 --> 00:37:46.280 that the state is truly a land of magnificent 00:37:46.280 --> 00:37:50.480 and often painful contrasts. The entire narrative 00:37:50.480 --> 00:37:53.400 is built on that East River -West River duality, 00:37:53.440 --> 00:37:56.360 which separates glaciated farmland from arid 00:37:56.360 --> 00:37:58.960 ranching plains and German -Norwegian heritage 00:37:58.960 --> 00:38:01.380 from the Sioux Nation. We've seen the extraordinary 00:38:01.380 --> 00:38:03.840 historical... depth of the Black Hills conflict, 00:38:04.039 --> 00:38:06.440 where the Lakota still refused compensation for 00:38:06.440 --> 00:38:08.539 a legal seizure demanding the land's return. 00:38:08.900 --> 00:38:10.719 And we learned about the striking contemporary 00:38:10.719 --> 00:38:14.360 paradox, systemic crippling poverty on sovereign 00:38:14.360 --> 00:38:17.079 reservations existing right alongside a massive 00:38:17.079 --> 00:38:19.900 hidden global finance and trust fund industry 00:38:19.900 --> 00:38:22.500 in Sioux Falls. And we discovered that the very 00:38:22.500 --> 00:38:25.400 identity of the state, its low population and 00:38:25.400 --> 00:38:28.199 no income tax policy, has been weaponized not 00:38:28.199 --> 00:38:30.739 just to attract business, but to attract residents 00:38:30.739 --> 00:38:33.260 who maintain only the most minimal physical commitment 00:38:33.260 --> 00:38:35.860 to the place. So as we conclude this deep dive, 00:38:36.000 --> 00:38:38.460 consider this. South Dakota's strategy relies 00:38:38.460 --> 00:38:40.659 on its low population density and its unique 00:38:40.659 --> 00:38:42.860 ability to allow full -time travelers, people 00:38:42.860 --> 00:38:45.500 whose identity is defined by mobility, to establish 00:38:45.500 --> 00:38:47.940 legal residency with a single overnight stay. 00:38:48.139 --> 00:38:50.659 Given the immense economic challenges of maintaining 00:38:50.659 --> 00:38:54.059 rural life versus the centralized growth in places 00:38:54.059 --> 00:38:58.539 like Sioux Falls, how does the ability to claim 00:38:58.539 --> 00:39:01.780 a physical place with virtually no physical commitment 00:39:01.780 --> 00:39:05.139 reflect broader modern shifts in identity, mobility, 00:39:05.400 --> 00:39:07.300 and community. It leaves us with a provocative 00:39:07.300 --> 00:39:09.820 question about the future of place itself in 00:39:09.820 --> 00:39:12.480 the American heartland. What is the real definition 00:39:12.480 --> 00:39:15.199 of citizenship and commitment in the Mount Rushmore 00:39:15.199 --> 00:39:17.900 State today? That's certainly something to ponder 00:39:17.900 --> 00:39:20.320 long after this deep dive is done. Thank you 00:39:20.320 --> 00:39:22.119 for joining us. Be well and keep learning.