Bernie Sanders says he’s concerned about the “unbanked and underbanked” in the U.S., and, along with Rep. Alexandria Ocasio-Cortez, he’s proposing that federal post offices also provide banking services. Sanders continued his pitch today:
Did you know that from 1911-1967, Americans could bank at their local post office?
At one point our postal banks serviced 4 million customers.
We must ensure all Americans can access basic financial services by allowing every post office to offer basic banking services again.
— Bernie Sanders (@BernieSanders) May 11, 2019
As the Gods of Ironic Timing would have it, the very day after AOC and Sanders announced their idea for postal banking, the USPS announced a loss of $2.1 billion in just three months.
Others aren’t as confident in the proposal as Bernie & AOC are:
There is an ATM and a bank closer to me than a post office.
— Ashe Schow (@AsheSchow) May 11, 2019
Not really interested in waiting in line all day just to be gruffly informed that my savings have been misplaced. https://t.co/gKeFiZm3Vu
— Smirque de Sar (@FoundersGirl) May 11, 2019
they gave me my neighbors mail for 3 straight weeks and you think they can handle money https://t.co/ypAxEoujBK
— Mayor of Gladeville (@BigBoyVol) May 11, 2019
Real Life:
My bank's app allows me to do most of my banking from my smart phone.
The Post Office has spent more than a decade working on downsizing and closing small post offices.
My local Walmart sells stamps, does money transfers, and a local bank has a branch office there. https://t.co/D9s9TuTSwu
— libertybelle (@october601) May 11, 2019
Recommended
This jackass wants to nationalize the banks, and this is nothing more than a backdoor run at doing so.
Commies gonna commie https://t.co/JVzAKsGGEA
— Warren Parsons (@warrenparsons) May 11, 2019
there are 2 post offices "near" me.
one is in a different state.
the other is in a different county.
both are over an hour away
The one in my county? hour & 15+.
PO loses billions.
Im not sold. https://t.co/8pr83KIFDx— BloodSpite (@BloodSpite) May 11, 2019
But hey, if Sanders wants to go back in time, let’s do this!
Did you know in 1911, Americans didn’t pay federal income tax? I’d be good going back to 1911 for postal services if we can do the same for taxes. Deal? https://t.co/oF5auj1NRo
— Carol Roth (@caroljsroth) May 11, 2019
We’re guessing Bernie won’t embrace that proposal.
Maybe Sanders should also share the reason the Post Office savings system was discontinued, one being that it cost too much to keep up given the declining participation due to various factors:
Deposits were slow at first, but by 1929, $153 million was on deposit. Savings spurted to $1.2 billion during the 1930s and jumped again during World War II, peaking in 1947 at almost $3.4 billion.
After the war, banks raised their interest rates and began offering the same governmental guarantee as the Postal Savings System. In addition, United States savings bonds gave higher interest rates. Deposits in the Postal Savings System declined, dropping to $416 million by 1964.
On April 27, 1966, the Post Office Department stopped accepting deposits to existing accounts, refused to open new accounts, and cut off interest payments as the annual anniversary date of existing accounts came up.
And Sanders calling it a “bank” isn’t the best way to describe what it was:
Not really.
It was more of a savings bond system than a full service bank as we understand the term today.https://t.co/96vBmAVHM8 https://t.co/pLObc95CZW
— Drew McCoy (@_Drew_McCoy_) May 11, 2019
Meanwhile, Rep. Ocasio-Cortez is just about over people questioning their “postal banking” idea:
GOP is talking smack about the Post Office (of course, since they have no ideas).
The funny thing about that: it‘s the GOP’s own “business model” that hurt them! They forced USPS to prefund pensions decades out (which makes NO sense & no solvent biz does)instead of year to year.
— Alexandria Ocasio-Cortez (@AOC) May 9, 2019
Really, the biggest, boldest idea (other than war) the GOP has proposed is A Wall.
At this rate they’re gonna propose getting us to space w/ trebuchets.
They constantly hate, but have 0 real solutions for income inequality, healthcare, climate crisis, racial injustice, etc.
— Alexandria Ocasio-Cortez (@AOC) May 9, 2019
We were going to propose allowing Amazon to provide banking services, but AOC might not like that idea.
I know it’s hard honey, but can you think of another carrier that provides better service, greater efficiency, and faster, more reliable deliveries?
— Smirque de Sar (@FoundersGirl) May 10, 2019
The market has led the private sector to develop advantages so that they can compete & increase profits – which benefit not only consumers, but also their employees – who they can afford to compensate with agreed upon offerings – such as pensions.
Cool how that works, right? ♻️
— Smirque de Sar (@FoundersGirl) May 10, 2019
Obviously not an actuary. No company pays pensions "year to year". Her idiocy knows no bounds. https://t.co/3t643aNPuM
— Chloe the Bulldog (@BulldogChloe) May 10, 2019
Typical. Toss out bad idea. Wait for it to be roundly criticized. Then claim to be the only one with an idea. #yawn https://t.co/mOxnccali3
— Mark Kelly (@MarkdKelly2) May 9, 2019
That pattern has not gone unnoticed.
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