More Government! Socialists Sanders and AOC Want the Postal Service to Get Into Banking

Nick Kangadis | May 10, 2019
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It’s difficult enough to trust the government to fix a pothole, we’re supposed to trust them with lending credit to citizens?

“Democratic” Socialists Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) want people to allow them to be in charge of their money — well, the few pennies they would allow people to keep after taxing them into oblivion.

Here’s part of what Ocasio-Cortez and Sanders are proposing (For full AOC/Sanders video, click here):

That’s right. They want the United States Postal Service (USPS), a government entity that loses billions of dollars yearly, to be in charge of a government banking loan program that would seemingly return to the days where loans would be given out to people who have no business procuring a loan — especially one with lower interest rates like they’re proposing. Low interest rates are typically reserved for people who banks assess will be able to pay back the loan in a timely manner.

However, that’s not even the main problem with this “plan.” As alluded to earlier, the USPS isn’t exactly known for money management.

CBS News reported the following back in November:

The U.S. Postal Service on Wednesday reported a financial loss for the 12th straight year, citing declines in mail volume and the costs of its pension and health care obligations, as the agency braces for an upcoming report ordered by President Donald Trump to address its "unsustainable financial path.”[…]

"Absent legislative and regulatory change, we cannot generate enough revenue or cut enough costs to pay off our bills," said Postmaster General and CEO Megan J. Brennan. "The flawed business model imposed by law continues to be the root cause of our financial instability.”

And people are supposed to have faith in USPS to sustainably handle Americans’ money when they can’t even keep their own debt contained.

According to Reason, who reported that “The Postal Service Lost $3.9 Billion Last Year” (2018):

The post office probably would have gone bankrupt long ago if it were a private entity—FedEx and UPS wouldn't exist today if they were posting annual losses of $4 billion. At the very least, it would be forced to make immediate, significant changes to how it operates. The service staggers onward, piling up ever larger amounts of debt (more than $13 billion at the end of fiscal year 2018), solely because it is a government enterprise[…]

What's really stunning is that the USPS managed to lose so much money in a year when income from shipping packages jumped by 10 percent and overall revenue increased by 1.5 percent. That wasn't enough to make up for an increase of $896 million in personnel costs.

But we should all totally trust Ocasio-Cortez and Sanders’ plan to help people who can't afford a private loans receive loans from the government, in order to pay for those things that Bernie and AOC don't want the government to just give you for free anyway.

H/T: PJ Media

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