The Federal Reserve helps struggling banks through temporary credit crunches—so why doesn’t the government treat struggling individuals the same way? We know why. It wouldn’t be profitable for the rich shareholders and CEO’s of major banks and payday lenders if the US government treated citizens the same way the Federal Reserve treats bankers.
Bernie Sanders suggested a way to help people through their personal credit crunches.
Following up on his campaign platforms like a $15 an hour minimum wage and closing corporate tax loopholes, Sanders is now suggesting we turn post offices into banks.
In an op-ed for The Wall Street Journal last year, Sanders first suggested postal banking as a way to help save the jobs of the more than 500,000 people employed by the United States Postal Service. As Sanders wrote, postal banking could also help provide financial services for people with limited access to bank branches.
“If you are a low-income person,” Sanders wrote, “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.”
According the the Atlantic Monthly, “Sanders’s idea is quite sensible. “Postal banking”—which just means that post offices run savings accounts, cash checks, and perform other basic financial services—is common in most of Asia and Europe, and only about 7 percent of the world’s national postal systems don’t offer some bank-like services. Postal banking is a really good way to reach people who haven’t had access to standard savings accounts. One estimate figures that more than 1 billion people have used post offices for making deposits.”