Deficit hysteria

There clearly was rampant misunderstanding concerning the guidelines and accounting that could govern postal banking. Opponents declare that brand new monetary solutions would economically tank USPS and later produce an unsustainable financial burden for the government.

However these issues don’t mount up. To start with, the postoffice isn’t straight funded by taxation profits. The Postal Reorganization Act of 1970 has lawfully forced USPS to be self-sufficient, to come up with its revenue from the very own solutions, whatever draconian cuts Congress has since imposed. Also, the analysis because of the Inspector General implies USPS itself probably will make money away from brand brand new services that are financial modest charges and interest.

Then a stable postal banking system could be our best defense if preventing Main Street from falling into the flames along with Wall Street is indeed a national concern.

However, whatever the post office’s own financial predicament, the federal government’s balance sheet will not consist of USPS assets and liabilities. Certainly, the separation is really complete that there’s a law that is uniquely foolish USPS put aside money today for several future retiree healthy benefits — without subsidy through the Treasury. Continue reading “Why Banking during the postoffice might be a Better Option Than Payday Loans — and Wall Street” →