Throughout the crisis that is last arguments had been made that Wall Street businesses must be rescued to save principal Street. If preventing Main Street from dropping in to the flames along side Wall Street should indeed be a nationwide concern, then a reliable postal banking system—a safe spot for many people’s money—could be our most readily useful protection.
Even though some advocate for a partnership that is public-private current commercial banking institutions, postal banking institutions could alternatively be an intrinsic little bit of a fresh economic architecture insulating the general public and Main Street organizations through the storms of high finance.
As an example, imagine the economy busts and folks begin to lose their jobs. The Federal Reserve could directly credit postoffice records, either with flat transfers, or ideally wages for federally jobs that are funded. This policy would inject cash into Main Street and stabilize costs and wages.
And as it pleases if you don’t like that idea, as even conservative commentator Reihan Salam at The National Review has recognized, a strong postal banking system could eliminate the need for federal deposit insurance and create more room for the private financial sector to innovate. The case for bailing out Wall Street would lose steam as a corollary, if trauma to Main Street could be avoided via the postal banking system.