Ocasio-Cortez Calls for Socialist, Government-Controlled Banking System
AOC wants govt-run bank modelled on failing US Postal Service
Famous Democrat Rep. Alexandria Ocasio-Cortez (D-NY) is calling for a new government-controlled socialist banking system in the United States.
Twitter celebrity AOC suggested that the failing US Postal Service could be used as a model for her govt-run bank idea.
Ocasio-Cortez advocated for a socialist banking option to compete with private banks, during a joint proposal with 2020 hopeful Sen. Bernie Sanders (I-VT), according to Hot Air.
The freshman New York lawmaker brought up the idea during an event with Sanders where the pair unveiled a controversial bill that would 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 declared while Sanders nodded along in agreement.
According to The Blaze, 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.
.@RepAOC "We should have a not-for-profit public option for basic banking services, and we should be piloting these projects through the @USPS" #postalbanking pic.twitter.com/dobyU4hdT2— Take On Wall St (@TakeOnWallSt) May 9, 2019
According to the Daily Caller, however, the problem is that an interest rate cap would just mean that lower-income consumers don’t have access to credit.
A cap on interest rates would have much the same effect as any other price ceiling — rather than lowering rates for everyone, those that would not normally qualify for an interest rate of 15 percent or lower would simply not be offered access to credit in the first place.
Sanders and Ocasio-Cortez’s plan would only harm low-income and low-credit consumers.
Americans should have the freedom to make the financial choices they deem necessary for their own situation, and lawmakers should not restrict this choice.