Libs like the idea for several reasons.
- It would provide banking services to even the poorest Americans, and hence, they hope, run payday loan stores out of business.
- They can offer basic services at low or zero fees, and put lots of pressure on the BIG EEEEEEEEVIL BANKS.
- It could become a conduit for stimulus, as the Fed could simply wire a deposit directly into the account of every American with an account there (yes, they have actually discussed this).
That would probably be a good thing. It is better to have a government business take off the mask and exploit the poor directly . . . plus get the resulting blame. The government deducts the loan payback directly from their government check and thereby ensures payment AND profit from the interest.
Not if they are required to be self-sustaining as is the Japan Postal Savings system. They can't offer checking accounts, just savings accounts and micro-loans. Debit cards, maybe? Yes, they will have an advantage by being able to deduct loan payments directly from government checks. But that would be about all. The banking business to the poor can be very profitable, $35 overdraft fees and the like. That's why so many of them opt out of the banking system completely or, at least to the extent that they pull cash out once their government check arrives.
Not all that different from the existing system, at least to the extent that they pull cash out once their government check arrives. They might actually leave it in a little longer now, maybe even buy savings stamps (remember them?) to trade in for savings bonds.
There’s something to be said for offering free banking services to the poorest Americans. I’m very careful to keep enough of a balance on accounts so I don’t have fees or monthly charges. Those minimums have become out of reach for a lot of people.