Elizabeths Warren’s New Plan to Save the Post Office and Help Low Income Families

[Galraedia]

It is no secret that the United States Post Office is in bad shape. This is due to a law that past under President Bush that requires the Post Office to fund its pension program 75 years into the future. In other words, they must fund their pension program for people who still have not been born. No other business operates this way, and it has put a large financial strain on the USPS. Never mind the constitutionality of Republican plan to kill the Post Office, with one of the main goals of the legislation being to allow private industry to come in and take over.

While there have been attempts to overturn the law that is putting an unnecessary strain on the Post Office, nothing has been able to pass the Republican-controlled House of Representatives. This has led some to try and find other ways to help the Post Office. Some members of Congress have already started to look towards the European model for ideas.

One such idea that is floating around currently has been adopted by Senator Elizabeth Warren (D-MA). Senator Warren wants the Post Office to start operating like a small bank, especially for low-income families.

Read more: http://www.occupydemocrats.com/elizabeths-warrens-new-plan-to-save-the-post-office-and-help-low-income-families/

[GP6971]

1. Great idea

but the banking industry won't allow it

[freshwest]

2. Outstanding idea and it would give more economic boost to the ones the GOP wants to close.

The Staples, Fed Ex, etc. are not on buslines or walking distance of my urban area,

They are miles away and require using time in traffic and gaoline to get to them. For those with less ability to get to them, they'll just be shut out.

More nihilism from the GOP and better ideas from our side.

[Laelth]

3. k&r for Elizabeth Warren. n/t

-Laelth

[Cha]

4. Hell, I did not know this!!! Friggin bush..

Why would they do this except to kill the USPS?

One more reason!



Thanks Galraedia

[ProSense]

5. Elizabeth Warren: Coming to a Post Office Near You: Loans You Can Trust?

Sen. Elizabeth Warren

Democratic Senator from Massachusetts

Coming to a Post Office Near You: Loans You Can Trust?

According to a report put out this week by the Office of the Inspector General (OIG) of the U.S. Postal Service, about 68 million Americans -- more than a quarter of all households -- have no checking or savings account and are underserved by the banking system. Collectively, these households spent about $89 billion in 2012 on interest and fees for non-bank financial services like payday loans and check cashing, which works out to an average of $2,412 per household. That means the average underserved household spends roughly 10 percent of its annual income on interest and fees -- about the same amount they spend on food.

<...>

But it doesn't have to be this way. In the same remarkable report this week, the OIG explored the possibility of the USPS offering basic banking services -- bill paying, check cashing, small loans -- to its customers. With post offices and postal workers already on the ground, USPS could partner with banks to make a critical difference for millions of Americans who don't have basic banking services because there are almost no banks or bank branches in their neighborhoods.

<...>

This is not a new problem, and policymakers in Washington have long sounded the alarm. Michael Barr -- an assistant secretary of the Treasury under President Obama and law professor at University of Michigan -- has pushed on this issue for years. As Chair of the FDIC, Sheila Bair put in place a Committee on Economic Inclusion to generate ideas for expanding access to lower-cost banking services. (I had the honor of serving as a committee member.) And we've taken some important steps forward. The new Consumer Financial Protection Bureau (CFPB), for example, is a cop on the beat that is putting in place commonsense rules to protect consumers and ensure that payday lenders are held accountable when they break the law.

There has been momentum in the right direction, but there is so much more work to do to make sure that families have access to affordable and fair financial services.

That is why the OIG report is so interesting. If the Postal Service offered basic banking services -- nothing fancy, just basic bill paying, check cashing and small dollar loans -- then it could provide affordable financial services for underserved families, and, at the same time, shore up its own financial footing. (The postal services in many other countries, it turns out, have taken steps in this direction and seen their earnings increase dramatically.) The report has provoked a great deal of discussion, and it is worth reading David Dayen's article about it at the New Republic -- "The Post Office Should Just Become a Bank: How Obama can save USPS and ding check-cashing joints."

- more -

http://www.huffingtonpost.com/elizabeth-warren/coming-to-a-post-office-n_b_4709485.html

Providing Non-Bank Financial Services for the Underserved
http://www.uspsoig.gov/sites/default/files/document-library-files/2014/rarc-wp-14-007.pdf

[okaawhatever]

6. this is how it is in Europe. A lot of countries do it. I know Ireland for one. nt

[Nay]

14. Unfortunately, the US has a poor record of learning from anyone else besides

its most ignorant factions. Certainly not from Europeans. USA, USA!!!1!!

[Blue Idaho]

15. The local Post Office is the heart of every British community.

Stamps, loans, passports, drivers licenses, pension payments, insurance and more all available at your local government owned Post Office.

[Abq_Sarah]

7. The Postal Accountability and Enhancement Act

Was passed by the House on a voice vote and the Senate by unanimous consent. If members of congress didn't want this, they were certainly shy about putting up any opposition. Henry Waxman was actually a co-sponsor of the bill.

In reality, the USPS was finally making money when this passed and everyone was salivating at the thought of getting that profit transferred to the treasury. Bush signed the law but we were complicit in getting it passed.

The best thing we could do for the USPS is to prohibit Congress from micromanaging it, period. Keep the universal service mandate, get rid of the prefunding requirement and pay back the USPS overpayments and allow the Postal Service to focus on delivering quality service across the nation.

[merrily]

12. Yeas and nays were requested more than once and refused.

More detail at my reply 9, below, and the DU thread linked in that reply.

[Nay]

13. The Dem and Pub senators who passed that Act certainly aren't going to

pass an act that would allow the Post Office to become a poor person's bank. I'm glad Warren is touting this, but to get it passed would be a miracle.

[madville]

18. Ted Kennedy was a cosponsor as well

There were actually more Democratic cosponsors than Republicans in both the House and the Senate.

[tclambert]

8. Post offices act as banks in some foreign countries, like Japan.

So this idea isn't some wild fantasy, others have tested it, and it works.

[El_Johns]

21. We had the same in the US from 1911-1966. I'd say *most* countries have had a postal savings

bank at some time or other.

The United States Postal Savings System was a postal savings system operated by the United States Post Office Department, predecessor of the United States Postal Service, from January 1, 1911 until July 1, 1967. The system paid depositors 2 percent annual interest. Depositors in the system were initially limited to hold a balance of $500, but this was raised to $1,000 in 1916 and to $2,500 in 1918. At its peak in 1947, the system held almost $3.4 billion in deposits. The system originally had a natural advantage over deposit-taking private banks because the deposits were always backed by "the full faith and credit of the United States Government." However, because the Federal Deposit Insurance Corporation gave the same guarantee to depositors in private banks, the Postal Savings System lost its natural advantage in trust.

http://en.wikipedia.org/wiki/United_States_Postal_Savings_System

[defacto7]

28. This was the brain child of

Theodore Roosevelt introduced during presidency between 1901 and 1909 and continued to develop under Will Taft. The idea has been around a while

[tclambert]

35. I'd say today the Postal System would have a trust advantage over banks.

Ted Bundy might have a trust advantage over today's banks.

[merrily]

9. Yes,the 2006 Act was passed under Bush but...

Obama appointed Taub and re-appointed Hammond to the Postal Commission. Taub drafted the 2006 Act mentioned in the OP.

http://www.prc.gov/prc-pages/about/commissioners/bio.aspx?subsectionid=66&AspxAutoDetectCookieSupport=1

As for Hammond.....


http://www.savethepostoffice.com/what-were-you-thinking-mr-president-obama-nominates-hammond-prc


When he was stumping for Obamacare, Obama said no one wants their health care to be run by the government. To illustrate, laughed at the Post Office--not Medicare, oddly enough, a much more apt comparison, but the Post Office, which operates remarkably well and inexpensively, as far as I am concerned.

This DU thread came up when I just googled the name of the Act and yeas and nays. I wanted to see how many Dems had voted for this bill. Well, we can't see that, as the OP of this thread explains.


http://www.democraticunderground.com/10022335782


Note the role played by LaHood (R), who, of course, went on to become Obama's Secretary of Transportation.


Representative Lynch (D), who is pro-union in general, did propose an amendment during the Obama administration, but it was to correct a mathematical calculation and even this eminently modest and reasonable amendment never went anywhere.



In sum, although the Act passed while Bush was President, I don't think Democrats were unhappy about it.

[quakerboy]

10. Im not so sure of this

Some things, yes. I like the idea of adding reasonably priced check cashing to USPS services. Maybe some sort of modified savings bond/savings account thing as well.

I'm not so much on board with having the USPS get into Payday loans.

[merrily]

16. My Post Office branch is a tiny satellite.

I think only two people work there. Maybe one other person works behind the scenes, but I doubt it.

I have never seen a security guard there. No doubt, there are cameras, but they usually serve to help catch and convict culprits, not to prevent crime. Conceivably, these two clerks could be killed in about a minute.

On the other hand, within three blocks of that post office branch are three very well guarded and alarmed banks.

I am all for anything that would save the Post Office, though. I just hope some plan works for that purpose.

[W.J. McCabe]

11. An interesting idea.

Not sure if it is a good one yet, though.

[mwooldri]

17. Get it done with already!

Things you should be able to do at a Post Office:

Renew your Drivers' License
Pay your vehicle and property taxes.
Apply for fishing licenses, and other local flat-fee licenses.
Open a savings or checking account.
Make deposits and withdrawals.
Purchase travelers insurance.
Purchase and sell foreign currency.
Purchase train, air and bus tickets.
Sign up and pay for telephone, cable and mobile phone service.
Apply for auto, home and life insurance.

That's in addition to what they do already. Oh, and a number of post offices can open up extra space to lease to some kind of retail outlet.

Though some people won't like the euro model though, which can involve closing a post office down and the services instead be operated by another company. But then that's a reason why they're called sub post offices ... the postmaster also runs the village shop.

[Cryptoad]

19. we ve got to,,,

bleed the working poor more,,,, and more,,,, and more!

[truebluegreen]

20. Since they are semi-independent anyway,

would it require passing a law, or can they just do it administratively? Because obviously the pukes in the house won't do anything to help poor people, the economy or the USPS. They hate government so much their highest calling is insuring that it doesn't work.

[ebbie15644]

22. My question is WHY wasn't it overturned

when Dems had both the house and the senate?

[mstinamotorcity2]

23. I still say it.

The best way to help the United States Post Office, Teachers, Union Workers, Veterans, Home Buyers, The Homeless, The Hungry, People of Color, LGBT, The 99%, Undocumented Citizens, Women and Children, The Elderly, Retirees, Investors, The Environment, Wildlife, The Disabled, Lakes and Rivers, Aquatic Life, Cancer Research, NOAA, Small Businesses, Milk, and anything else that a Repug can mess with. Is to give our President a Congress he can truly WORK with in November 2014. I am ready. I want to make our votes count. We can't allow them to win. We must shoe them their money won't buy us. we must give them the fight of their money having lives. I want it just like when the President was running, they spent a bunch of loot and got nothing for it. And would you believe that our Governor has just run his ad during a Superbowl break for commercials. He wants to get re-elected bad. Watch him. They will try and make him Presidential material. When I last looked we were third from bottom in Job Creation. He is touting a Surplus, but Licensing fees and just about every other Michigan state fee went up. Yes the middle class is still footing repug bullshit.

[gerogie2]

24. The post office needs to be phased out.

With electronic delivery of letters and correspondence it is time to cut back and/or eliminate the post office.

[Skittles]

25. so we can pay more to Fed Ex and UPS?

[cui bono]

26. They deliver more than letters and correspondence.

You'd rather privatize delivery of packages?

[Jasana]

27. That is a stupid idea.

What about all the elderly who do not pay bills online? What about all the poor people who do not have computers? Have you spared a single thought for anyone not in your immediate space? No? Go back and think again. Come back when you can offer a helpful suggestion.

[Enthusiast]

30. You would throw away all those thousands of high paying postal jobs?

Those are the "good jobs" we want to create, not destroy. You aren't at all bashful about taking what is a distinctly Republican/Tea Party position are you?

[gerogie2]

32. We don't need a postal service to deliver letters

Electronics have replaced the need to deliver letters. Packages can be delivered by private companies. The need for a postal service to deliver written letters on paper has passed. It is a waste of natural resources to have all those mail trucks driving in every city six days a week.

[demwing]

33. You're just wrong about letter delivery

Maybe at some date in the future, but not now, no way. 1st class mail makes up nearly 45% of the USPS's 65 Billion in revenues. The rumors of stamped mail's demise are greatly exaggerated.

If the USPS were a private business, it would be ranked #42 on the US Fortune 500, and #135 on the Global Fortune 500, and you say it's time for them to go?

What in the world are you smoking?

[gerogie2]

34. It's bad for the environment

All those auto-mobiles polite the environment when we have others ways to communicate is unnecessary. People can use cell phones and computers to communicate. Package delivery can be done by private companies.

[demwing]

36. Will private companies performing those same deliveries be any better for the environment?

No they wont.

But the USPS is going Green:
http://about.usps.com/who-we-are/postal-facts/#H10

Postal Blue Goes Green
The Postal Service is committed to being a sustainability leader by creating a culture of conservation and leading the adoption of sustainable business practices by engaging employees, customers, suppliers, the mailing industry and federal peers.

Preserving Resources

• The Postal Service is the first federal agency — and the first company in North America — to receive Gold status from The Climate Registry for its sustainable efforts in reducing greenhouse gas (GHG) emissions. Gold status is awarded to those who reduce GHG emissions by 5 percent.

• The Postal Service partners with suppliers to maximize the use of recyclable materials in the design and manufacturing of its stamps, postcards, Priority Mail and Express Mail boxes and envelopes.

• The Postal Service’s Western Area received the EPA’s WasteWise Federal Government Partner of the Year award in 2010 and 2011. The Postal Service’s Northeast Area and Alabama District are two of only 16 organizations to be inducted into the WasteWise Hall of Fame.

• In 2012, the Postal Service was the only agency-wide registrant for the EPA Federal Green Challenge.

• The Postal Service is helping to prevent prescription drugs from contaminating natural resources. In 2012, the Postal Service recovered nearly 172,000 pounds of unused pharmaceuticals through a prescription mail-back initiative.

• In 2012, recycling efforts captured more than 250,000 tons of material — wastepaper, cardboard, cans and plastics — generating revenue and avoiding landfill fees for a combined total of $24 million.

• More than 22,000 secure recycle bins in nearly 12,000 Post Office lobbies make it easy for customers to read, respond and recycle their PO Box mail.

• Blue and Brown Make Green — the Postal Service partnered with UPS in 2012 to launch a new campaign designed to help each achieve goals, and reduce costs, carbon footprints and greenhouse gas emissions. For more information, click here for a video featuring the CEOs of both organizations.

• For more information on Postal Service sustainability efforts, go to usps.com/green.

Building Green

• By constantly finding ways to make buildings, systems and equipment more energy efficient, the Postal Service has reduced energy use by 34 percent since 2003. The objective is to reduce facility energy consumption 30 percent by 2015.

• The Postal Service makes existing facilities more sustainable with features like high-efficiency lighting and HVAC, recycled building materials, low-water use fixtures, solar energy systems, native plant species in landscaping, natural day lighting and low volatile organic compound materials.

• The Postal Service has the largest green roof in New York City and one of the largest in the country, totaling 109,000 square feet, nearly 2.5 acres. Green roofs save energy and can contribute to better water quality.

• The Postal Service’s second green roof is in Syracuse, NY. Designed to conserve water and energy, the new roof has been built at no cost to the Postal Service, thanks to an innovative collaboration with Onondaga County, NY.

Conserving Energy

• The Postal Service operates one of the world’s largest fleet of alternative fuel-capable vehicles — more than 40,000 — and most are equipped to use ethanol. There are electric, compressed natural gas, liquid propane gas and bio-diesel vehicles.

• More than 75,000 letter carriers drive to a neighborhood and then deliver the mail on foot. Nearly 7,800 deliver solely on foot.

• Mail is delivered on bicycle on select routes in Arizona and Florida, reducing emissions and saving fuel.

• The Postal Service continues to use and benefit from solar power with solar photovoltaic systems that convert sunlight into electricity.

• The Postal Service is testing 10 Navistar eStar electric step vans. The new 2-ton vehicles will be tested in three locations: CA, NY and VA.

• The Postal Service uses three-wheeled electric delivery vehicles — the T-3 has a 40-mile range, a maximum speed of 12 mph, can carry 450 pounds and averages 2 cents a mile in energy costs. It also uses 2-ton electric vehicles which have been used to deliver mail in New York City since 2001.

[Galraedia]

37. We need to eliminate a service that costs taxpayers nothing...

so that taxpayers can subsidize a private for-profit business to replace it with? That's stupid. 2006 was a very profitable year for USPS and was the same year Republicans passed the (PAEA) Postal Accountability Enhancement Act. The post office was never meant to be profitable and yet it is. USPS isn't beholden to shareholders nor does it have a CEO, so they are able to provide decent middle-class jobs. USPS also costs you NOTHING unless you use it. Remove the PAEA that Republicans passed and USPS won't have to layoff anyone and will also have a surplus of 15 billion.

[Enthusiast]

29. This will make the rightie's heads explode!

[jsr]

31. Recommend

[Egalitarian Thug]

38. Great idea! K&R

[Egalitarian Thug]

39. K&R. n/t