The end of the eviction moratorium this past week and the response by the Squad says a lot about the limitations of the administrative state. Mass evictions should not be a problem. The large COVID relief package passed last year included something like $40 billion in rental assistance, distributed to the states. As of now, only about $3 billion has been allocated to the people who need the help. That’s maybe 8%.
What the fuck? Why is it that when we go through the ridiculously baroque process of applying federal funds to a problem like this, the money often doesn’t get spent? David Dayen talked about this a bit on the Majority Report on Monday. Put simply, after decades of neoliberal attack on the administrative state, the means of getting government aid to people are sclerotic and dysfunctional.
Loudest voice in the room
There’s a reason why we have such an atomized, ineffective system for helping poor and working people. Ordinary people don’t have armies of lobbyists at their disposal. The eviction moratorium is a good illustration of this. The 7 to 11 million people who were at risk of homelessness as a result of the moratorium’s end are underrepresented. Their landlords, by and large, are anything but.
The difference this time around was that a formerly un-housed person became a member of the House of Representatives. Cory Bush, along with some of her allies, became, in effect, lobbyists for renters. And, amazingly, they were successful. Though I know the thought of it is intensely painful to many armchair leftists on Twitter, we should celebrate this small victory, because it is significant. In so doing, however, we must bear in mind that money still talks very, very loudly.
Why we need postal banking
What do we do about a system that easily transfers billions to corporate bankers but can’t seem to manage rent relief for people in trouble? Well, we need some method for delivering direct payments to Americans in a reliable, low-friction way. In my humble opinion, that method is setting up postal banking.
As many of you may know, postal banking is not a new idea. In fact, the Postal Service offered banking services back when I was a little shaver. The idea I prefer is one that is a bit broader than the old version. My preferred version is this: Every American – and I mean every one – gets a postal banking account. Just like getting a Social Security number, they open an account for you when you are born and you have it all your life. It would be a free, interest bearing account that allows for savings, electronic transfers, etc.
My personal preference would be that the Federal Government deposit some amount, say fifty bucks, as a little birthday gift for every newborn. But whether or not that comes to pass, your postal bank account would serve as the deposit account for any federal benefit payments. Now, if you prefer to use a private bank account, you can always transfer your funds to that bank, even set up auto transfers. But no matter what, that account would be there for you.
Put some bank in the reconciliation bill
I think this is an idea whose time has come. It would make the transfer of that $40 billion in rental assistance dead simple. It would give poor and working people access to banking services. It would, in short, make an enormous difference, and help float our beloved Postal Service as well.
Let’s put it in the reconciliation package, people! Call your reps!
luv u,
jp
