6 Things You Need To Know About Postal Banking

[eridani]

http://www.occupy.com/article/postal-banks-are-people%E2%80%99s-banks-6-things-you-need-know-about-postal-banking

It’s being called “Bernie’s Brilliant Idea,”, and Bernie Sanders’s embrace of postal banking is indeed brilliant, both in timing and substance. But while his insurgent presidential campaign may give a credible boost to USPS financial services, Sanders’s endorsement is far from sufficient. To make postal banking happen requires a broad, mass coalition willing to keep pushing the issue regardless of the outcome of the 2016 elections. If you want to be part of that movement, or already are, keep these six things in mind:

1. Postal banking has a long, strong history.

Nations all over the world have postal savings banks, and the United States had a successful postal bank from 1911 to 1967. At one time, as many as 10% of Americans used postal banks; unsurprisingly, it was lobbying from big banks that shut the program down by urging Congress to stop allowing postal banks to offer competitive interest rates. The emergence of postal banking as a 2016 electoral issue stems from a campaign that began early last year with a short, persuasive piece written by Sen. Elizabeth Warren, who cited a report by the Postal Inspector General recommending that the USPS offer financial services – from check cashing and small loans to financial counseling and bill paying – as both a public service and business opportunity for the U.S. Post Office. Soon after, a large coalition of unions and economic justice groups – including the organization I co-founded, Commonomics USA – coalesced around the demand for postal banking. We strategized, pushed the message, hosted conference calls, forums and Q&As on postal banking, and waited.

One of the people we strategized with was Mehrsa Baradaran, a law professor at the University of Georgia who, in the process of releasing her book ["How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy"](http://www.hup.harvard.edu/catalog.php?isbn=9780674286061], spoke at a forum we held in March. Baradaran’s argument is simple and forceful. “The basic idea of modern postal banking,” she writes, “is a public bank offering a wide range of transaction services, including financial transactions, remittance, savings accounts, and small lending. These institutions would remain affordable because of economies of scale and because of the existing postal infrastructure in the U.S. Plus, in the absence of shareholders, they would not be driven to seek profits and could sell services at cost.”

Baradaran’s book and accompanying articles coincided with Sanders's sudden, somewhat media-driven embrace of postal banking earlier this month. Although Sanders has been a longtime supporter of public and postal banking, the concepts were not raised in his presidential campaign until after the first Democratic debate.

[erronis]

1. Well, I'm sure this will be possible, especially with a paid-for congress and a WS-friendly pres.

</sarcasm>

[Overseas]

2. K&R. Glad to hear it.

[waldo.c]

3. K&R

Bernie has got all the right ideas because his overall goal is the betterment of the standard of living for all American citizens.

[LittleGirl]

4. Our primary bank is the post office here

in Switzerland. As Americans, this was our only option besides UBS. Works great for us and they are in every village.

[alfredo]

7. We have a Postal Credit union. The big banks are trying to kill credit unions.

Credit unions don't try to nickel and dime us.

[LittleGirl]

8. When I lived in the states

I ALWAYS had a credit union. Always. I refuse to use the big banks...until they sold our mortgage to Wells...ugh.
edit: sorry, it wasn't a credit union that had our mortgage...it was another 'mortgage company' that sold it to wells. just to clarify.

[alfredo]

9. My mortgage got sole three times. I paid it off early. Screw em.

[appalachiablue]

5. Great idea, thanks for the info. about the efforts of the Postal Inspector General, Warren and

Baradaran. For several years at least, Bernie Sanders and Thom Hartmann have both discussed the benefits of the US Postal Service offering banking services again.

A TAX on Wall Street financial speculation/transactions, that Bernie proposes to help fund college is tuition, was in place earlier and for different reasons I learned from a commenter's post here.

The tax likely began with the reforms of FDR. The transaction tax was originally imposed on banks for financial speculation in order to help fund the SEC, the Securities and Exchange Commission, the new federal regulatory agency for finance established under FDR, and headed by Joseph P. Kennedy who FDR selected for the position.

But in the 1960s there was movement to remove the tax since the federal SEC agency was fully funded by then or for other reasons. I'm not sure of the rationale.

Bernie's idea to tax Wall Street speculation to support our young people's education and invest in them and the future is an outstanding one. The banks were helped in 2009 by the people and they can return the favor as he says.

[hunter]

6. Yep. Put the check cashing places and predatory banks out of business.

Basic no-charge banking services for all, including debit cards and direct deposit, at every post office.

[alfredo]

10. Credit union fees are low, and are in no way trying to profit from misfortune or error.