One model of Public Banking — postal banking — would be able to service an abandoned market of the unbanked and underbanked, all while rescuing the USPS from a manufactured crisis and protecting it from the vultures trying to force its privatization.
PBI Chair Ellen Brown writes in her latest article in TruthDig that the USPS has been successfully self funded throughout its long history, but it’s now struggling to stay afloat, due to a sabotaging congressional mandate that requires the USPS to prefund healthcare for its workers 75 years into the future:
“No other entity, public or private, has the burden of funding multiple generations of employees yet unborn. ... Meanwhile, the need for postal banking is present and growing. … The average underserved household spends $2,412 annually – nearly 10% of gross income – in fees and interest for non-bank financial services. More than 30,000 post offices peppered across the country could service these needs.
“Bankers continue to fear that postal banks could replace them with a public option – one that is safer, more efficient, more stable, and more trusted than the private financial institutions that have repeatedly triggered panics and bank failures, with more predicted on the horizon.”
Find more excellent resources on Postal Banking at the links below:
- Campaign for Postal Banking
- “Banks of the People”: The Life and Death of the U.S. Postal Savings System
- Providing Non-Bank Financial Services for the Underserved
Share this blog post with your friends!