Bernie supports Post Offices providing banking as an alternative to Pay Day Lending

[think]

Bernie Sanders's Highly Sensible Plan to Turn Post Offices Into Banks

They're much less crazy than payday-lending services, and the rest of the world agrees.

JOE PINSKER OCT 20, 2015

In an interview with Fusion’s Felix Salmon the day after last week’s Democratic debate and published Tuesday, Senator Bernie Sanders discussed the marquee features of democratic socialism he’s been tirelessly calling for during his presidential campaign: higher taxes for the wealthiest Americans, an increased minimum wage, and breaking up the biggest Wall Street banks.

Salmon also raised a possibility that has not been as prominent in Sanders’s stump speeches, but animates him nonetheless: turning the U.S.’s post offices into banks. Sanders:

If you are a low-income person, it is, depending upon where you live, very difficult to find normal banking. Banks don’t want you. And what people are forced to do is go to payday lenders who charge outrageously high interest rates. You go to check-cashing places, which rip you off. And, yes, I think that the postal service, in fact, can play an important role in providing modest types of banking service to folks who need it.

~Snip~

The reason why this would be so useful in the U.S. is that somewhere between 20 and 40 percent of the population has to rely on check-cashing or payday-lending services, which in some places charge usurious rates that send people into spirals of recurring debt. Mehrsa Baradaran, a professor at the University of Georgia School of Law and the author of How the Other Half Banks, touched on the promise of postal banking in a book excerpt published in The Atlantic last week:...

Full article:
http://www.theatlantic.com/business/archive/2015/10/bernie-sanders-lets-turn-post-offices-into-banks/411589/

[MADem]

1. I've been a fan of this idea for eons--I've talked about it here in the past.

It's a wonderful way to bring banking services to underserved communities and individuals.

[randys1]

4. Imagine if we had politicians whose default position ALWAYS was how to benefit average

people.

Does such a politician exist?


Actually, he does.

[MADem]

5. Don't look for heroes in ANY politician. It's a job for them. They serve their constituencies.

This is why they have "good" ideas in some regards, and boneheaded ones in others.

One size doesn't fit all, even in America...

[randys1]

7. I need a hero sometimes. My hero though is George Carlin, who agrees with you

[Ken Burch]

15. I like George Carlin, too. Got any heroes who are still breathing? n/t.

[MADem]

21. Carlin's immortal, though. And he's not looking for a vote or a government paycheck!

He was harsh, he was sardonic, but he certainly could cut through the bullshit of pretty much any and every constituency--including ones that try to own him after death.

Everyone could find something to love in what he said, and everyone--if they dug deep enough--could find something they virulently disagreed with, as well.

He was the voice of Everyone--at some point in time, anyway!

[Ken Burch]

24. Agreed on all of that.

Carlin was the one true successor to Lenny Bruce.

[think]

8. It would be great to hear more politicians getting behind this effort.

It would also be very convenient to combine these services for many consumers.

America use to have banking at Post Offices. It's too bad it stopped.

Looks like England, Germany, France, Japan, India and many other countries have the post offices also doing banking:

https://en.wikipedia.org/wiki/Postal_savings_system#Other_countries

Hopefully Democrats will take the lead and champion this idea for America once again..

[MADem]

18. You get everything at UK post office, it seems! nt

[alcina]

37. I was curious about which services were offered at UK post offices

Holy cow! Savings accounts, mortgages, personal loans, insurance -- including pet insurance -- broadband and phone packages.... Heck, you can even buy a pre-paid funeral plan!

http://www.postoffice.co.uk/

[MADem]

39. Pretty cool, eh? nt

[davidpdx]

26. South Korea has it as well

Sometimes I use the post office ATMs because they don't charge a fee even though it isn't my bank.

[NWCorona]

9. Me too!

[Snotcicles]

2. That shouldn't set well with DWS. nt

[think]

3. DWS could ensure her constituents have access to credit if that's what she's truly concerned about.

http://www.democraticunderground.com/?com=view_post&forum=1251&pid=1414070

[MADem]

23. I doubt that--post office bank accounts are ideal for seniors on fixed incomes.

If they provide bill paying services at post offices, that would simplify life for a lot of people.

DWS has a fair number of seniors in her district.

[Nonhlanhla]

6. This is one my favorite Bernie ideas.

We had something like that in South Africa when I was growing up. Even kids had little post office savings accounts.

This would be a wonderful alternative for poor people, from what I understand.

It would also be a great way to help strengthen the USPS, of which I'm a huge fan.

[think]

13. This is one I'd love to see Hillary get behind. It's one of the least intrusive & cost effective

ways to reduce wealth inequality and boost our sagging economy:

http://www.salon.com/2014/02/26/the_post_office_can_save_america_10_ways_postal_banking_can_fix_some_of_societys_worst_problems/

[timmymoff]

20. She will

Bernie has to speak about it a little longer. She can then conduct polling on it and adapt it as her own.

[Euphoria]

10. It's a great idea.

Available in Germany and, I assume, other countries.
Hey, let's do it!

Oh that's right, we are living in a vulture-capitalism economy.

[scscholar]

11. USPS workers are already so overworked

This is a terrible idea.

[think]

12. There would most likely be provisions to hire more people to work those positions.

[scscholar]

19. That's what was said about UPS SurePost, ...

but that hasn't happened!

[jtuck004]

22. Whole communities have no jobs, no hope. With some investment in jobs and insfrastructure

a bank at the post office could be the difference between the community accumulating anything and someone stealing their labor.

It's actually a damn good idea for several reasons, not the least of which that it might be something that keeps congress from ending the USPS as we know it. You get people's money in there and take care of it, you will become a beloved alternative to our current Bank$ter/Jihadists.

[scscholar]

25. Congress can't end the USPS!

“To establish Post Offices and post Roads”

[jtuck004]

27. Are the ones in Staples constitutionally required? n/t

[jeff47]

29. That gives Congress the power to make the USPS. It doesn't say they have to use that power. (nt)

[MADem]

40. More people would be hired. nt

[kgnu_fan]

14. This is a great idea!

[appalachiablue]

16. Great idea, and support the US Postal Service!

[dreamnightwind]

17. Yes, huge difference between Bernie and Hillary on this issue! K & R!

[Cleita]

28. This would put a stop to the predatory payday lending services that screw the poor.

He's talked about this for a long time. Glad he's bringing it into the campaign. Next I hope he points out the usury interests rates charged by credit card companies and promises to look into fixing that too.

[Raster]

30. Payday lenders are nothing more than government-sanctioned LOAN SHARKS.

ANY PUBLIC SERVANT - IN ANY CAPACITY - that would promote payday loans and lenders IN ANY CAPACITY is a crook, plain and simple. THEY ARE ON THE TAKE. Payday loans were once called: USURY, and subject to legal penalty.

[RufusTFirefly]

31. Uh-oh! Careful Bernie!

Seriously, I think it's a great idea.
I support all types of public banking.
And I'll bet DWS hates it.
Which proves my point.

[Godhumor]

32. Anything that keeps the Post Office solvent, I can support n/t

[Uncle Joe]

33. Kicked and recommended.

Thanks for the thread, think.

[dana_b]

34. I saw this in France last month and I loved it

so easy, quick and sensible.

[NCjack]

35. I love the US Post Office, esp. because the right-wing mouth-breathers

don't like that example of socialism in the US Constitution, but there it is.

I think that we should allow the USPO to: a) accept payment for utility bills, and b) sell term life insurance to the poor in competition with the weekly fee rackets that don't pay claims.

[Recursion]

36. Great idea, though it doesn't replace the lending

On the one hand, check cashing places charge 5% (or more) to cash a check, and this would help with that for people who don't/can't have bank accounts. (And nowadays even a bank will charge to cash a check drawn on that bank, which is absurd, if the casher doesn't have an account there.)

In terms of check cashing and other forms of money transfer, having the USPS offer bank accounts is a great idea as long as they don't use the creditworthiness tests normal banks do, otherwise there's really not much of a point.

In terms of the loans, they almost certainly won't be able to offer short-term unsecured cash loans (precisely because they can't require the creditworthiness banks do) which means that payday loan scum will continue to have a market until they're finally made illegal. (I can't think up a non-predatory way to allow short-term unsecured loans, so I don't think they should be legal.)

[Arazi]

38. This idea is long overdue in becoming a reality

kicked and recced

[myrna minx]

41. K&R n/t

[Cheese Sandwich]

42. Not a bad idea!