Now Hillary Clinton seems to be embracing the idea that U.S. Postal Service could begin offering financial services can we believe her?
With the Democratic Presidential nomination wrapped up she may be able to ignore many campaign platform ideas put forward by former competitor Sen. Bernie Sanders (I-VT) that included strengthening and preserving the U.S. Postal Service. These include establishing financial services intended to serve the needs of lower income people shunned by traditional banks.
All too often political parties ignore their platforms—which are nonbinding anyway– as they move into campaigning in the general election.
Even if the financial powers that be accept idea of a postal bank, they are adamantly opposed to reviving the Glass-Steagall Act, the Great Depression-era legislation that separated retail banking from investment banking, as CNBC points out http://www.cnbc.com/2016/07/24/why-hillary-clinton-thinks-making-the-postal-service-a-bank-too-is-a-good-idea.html.
And how could the USPS even get it off the ground and wouldn’t take years before a postal bank would be operation and wouldn’t Congress have to approve such a major undertaking anyway?
Agreed. But you’ve got to start somewhere.
Remember, the Office of the USPS Inspector General estimated such a financial services operation could easily reach people through its network of more than 31,000 post offices across the country. What’s more such an entity could reap potential revenue of more than $1.3 billion a year.
Just the same, the USPS still wants to cut back on providing basic door-to-door mail delivery services in selected areas
One of the biggest examples of this is the practice of installing cluster boxes in places like suburban developments. . Instead of delivering to each door as it has for more than 200 years, the USPS would deliver mail only to centralized drop boxes, in effect ending the privacy of personal—and business—mail delivery.
Doing this would effectively lower service standards to what exists in counties like Pakistan where everybody’s mail is delivered once a week in large piles in village squares.
This issue has been seething for nearly two years now when it was reported that the USPS had begun doing this in at least one housing development in eastern Pennsylvania.
What’s worse is that gradually shifting delivery to cluster boxes has been proposed in bipartisan bills now pending in Congress. Surprisingly, the National Association of Letter Carriers seems to largely go along with these measures, although the labor group does oppose the cluster box provision, according to The Hill http://thehill.com/blogs/congress-blog/economy-budget/289933-bipartisan-usps-reform-legislation-will-strengthen-agency.
Meanwhile, the postal service wants to broaden its new experimental grocery delivery service to more cities. The postal service teamed up with Amazon.com more than a year ago. While the parties are keeping financial results under wraps, the mere fact that they’re looking to expand the venture strongly suggests profitability potential, reports Consumerist https://consumerist.com/2016/07/12/u-s-postal-service-asks-to-continue-grocery-delivery-experiment-until-fall-2017-expand-to-more-cities/.
This experiment shows exactly what the postal service can do through its vast presence and historically well-proven delivery abilities. Building on these strengths makes more sense. Scaling back services can only make overall matters worse.