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Ocasio-Cortez calls for public-option banking system based on the US Postal Service model


What's appealing about that?

J Pat Carter for the Washington Post

Rep. Alexandria Ocasio-Cortez (D-N.Y.) advocated for a government-run banking option to compete with private banks, and suggested that the U.S. Postal Service could be a model for such a program, according to Hot Air.

Ocasio-Cortez brought up the idea during an event with Sen. Bernie Sanders (I-Vt.) where the two unveiled a bill to cap loan credit interest rates.

"What we can then say is, A, we should have a not-for-profit public option for basic banking services, and we should be piloting these projects through the U.S. Postal Service, or any other number of ways," Ocasio-Cortez said as Sanders nodded along in agreement.

The USPS, of course, is not doing so well. It loses billions of dollars per year and is currently on an "unsustainable financial path" despite efforts to remain useful with increased package deliveries.

Ocasio-Cortez's proposal is another example of a Democratic idea that places high levels of faith in the federal government to manage an important industry, such as banking or health care, more efficiently than private companies, despite significant evidence that the government doesn't do much of anything very efficiently.

The New York congresswoman recently endorsed the embattled Department of Veterans Affairs, saying "if it ain't broke, don't fix it," even though most agree that it is indeed "broke."

Sanders' and Ocasio-Cortez's proposal, the primary reason for their event, called for a maximum interest rate of 15 percent on credit cards and other consumer loans, attacking what they called "extortion" from banks and credit card companies.

"At a time when the American people hold a record $1 trillion in credit card debt and desperately need relief, we need to establish a national maximum interest rate of 15 percent on credit cards and other consumer loans," a joint statement read.

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