What would postal banking look like? Like an easier and more accessible way to bank, for starters. (Photo: AWPU)
by Mike Leyba, director of communications for United for a Fair Economy.
August 15, 2016
A little over a year ago, United for a Fair Economy released State of the Dream 2015: Underbanked and Overcharged. This groundbreaking report looks at the banking industry from the perspective of low-wage workers and people of color. We are thrilled to be sharing a small victory that has happened partly because of this report and the policy solutions it proposed.
Underbanked and Overcharged found that over one in five households (mostly Black, Latino, or Native American) are underserved by the banking industry, costing these households an average of $3,029 per year in fees and interest just to access their own money. This additional cost takes a total of $103 billion per year out of the communities that need it most.
One of the solutions we promoted in this report was expanding the services offered by the United States Postal Service (USPS) to include some basic banking services, like check cashing, bill-pay, fee-free access to federal payments (like social security benefits, military pay, welfare assistance, etc.) and even offering free basic checking or savings accounts.
UFE was proud to join with 16 other national organizations to create the Campaign for Postal Banking. In December, the Campaign delivered 150,000 signatures to the Postmaster General urging the USPS to begin offering basic financial services to people most in need– the unbanked and underbanked.
In June of this year, Michael Young, our Inclusive Economy Network Director, was asked to speak at a field hearing in Greensboro, NC on the benefits of postal banking in marginalized and rural communities. His comments can be found here.
The effort to bring back postal banking achieved a major victory this month, when the official Democratic Party Platform included language that supported Post Offices expanding into basic financial services. This is not a specific piece of legislation; rather it will be the official policy position of the Democratic Party.
While this policy idea can make a big difference to millions of unbanked and underbanked people around the country, it is only one small step toward financial inclusion. The economy must work for the very workers that power it– and even those unable to do traditionally paid work.
It is going to take a multi-dimensional approach to create this inclusive economy– including community organizing for fair taxes and progressive government, outlawing the most exploitive practices in our economy, lifting the wage floor at local and federal levels, and supporting the businesses and cooperatives that are putting people and planet before profit.
Why do they have to throw the race card and poor thing?! Seriously!
NOT GONNA HAPPEN!! TO MUCH MONEY INVOLVED FO OTHE LOBBYIST, AND TO MANY HIGHER UP,S HAVE THEIR HANDS IN POCKETS WITH THE POLITICIANS… SO FUGGETTABOUTIT…
The idea is not bad, but there is no profit in this. Therefore for this idea to go forward government must pledge taxpayer funds to support postal banking and guarantee to cover losses on loans. The Postal Service has already defaulted on $28 billion in obi to the government so who is going to put up the cash to get Postal Banking started?
well i think its a great idea.
Great idea. The Postal Service had a Postal Savings Bank till 1967. Time to bring it back! Our government won’t do anything unless a greedy private co can make lots and lots of money! When was it the last time our elected officials did anything for the people? Ask not what your government can do for you, ask what can the government do for your favorite corporation?
LOL !……Well said Mike !
Our inbred clown of a PMG is too incompetent and lazy to implement postal banking…Megan Brennan has already stated she’s against it.
Meanwhile she’s doing a great job of bankrupting a monopoly!
Elizabeth Warren has an on-line petition that people can sign that addressesPOSTAL BANKING…I’m new to this whole idea…in the US, postal banking has a real history:
“How the other Half Banks” ( the book) is clear and inspiring.
Tomorrow, Friday in Palo Alto, I plan to attend the swearing in of the new
Post master–Diana Liang at high noon.
Who’s going to run these proposed postal banks? Upper USPS management ? The APWU? United For A Fair Economy? The Democratic Party? Perhaps,even the Republican Party? Anyone,could propose an idea that sounds good. So what? All the organizations,openly or possibly supportive of such a great USPS expansion;know about as much about banking,as they know about the surface of Pluto.
….low-wage workers and people of color
They just told us exactly what is wrong with this country with these few words
I guess if I’m one of those people of color and filthy rich it’s for me, Butif I’m filthy rich and white it is not for me.