Politics

AOC and Bernie Sanders Want Your Post Office to Double as a Bank

Written by adminMay 15, 2019

Democrats Alexandria Ocasio-Cortez and Bernie Sanders have a new idea they want to propose to Americans. They want to change the way we do banking. They say they have a new idea that will help the lower class and it’s called Postal Banking. This is a new system where you do more than use the post office to send packages. Now they would be able to hand financial transactions as well.

This new plan was revealed as potential new legislation by the pair. They also hope to cap credit card interest rates at 15%. This plan would give much-needed relief to low-income Americans who most likely wouldn’t be able to get a checking account at the larger banks or apply for loans.

“Post offices exist in almost every community in our country,” Sanders wrote in a blog post. “There are more than 31,000 retail post offices in this country. An important way to provide decent banking opportunities for low-income communities is to allow the U.S. Postal Service to engage in basic banking services.”

How the Post Office Bank Would Help

Banks only help those with means get a loan, open an account, cash their checks, and pay their bills. At least, that’s the assumption AOC and Sanders have. They say a post office bank would give the same opportunities to poor Americans. It could give them low-interest loans to help lift them out of poverty by starting their own business.

It will help in the same way other banks do, but without the fees. Imagine using the ATM with no fee taken out or a truly free checking account. Currently in the United States, the poor have these opportunities, but it doesn’t always turn out great for them. If they need a loan or an advance on a check, they often turn toward predatory payday lending businesses.

The Treasury Department Thinks It’s a Bad Idea

The Treasury Department doesn’t think this will be a good idea that will help any American. Mainly because the USPS is already strapped, in the red, and barely keeping their head above water. They would have no experience in helping anyone manage their own money. For these reasons, they are fully against the idea.

“Given the USPS’s narrow expertise and capital limitations, expanding into sectors where the USPS does not have a comparative advantage or where balance sheet risk might arise, such as postal banking, should not be pursued,” a report from the Treasury Department stated. Yet, this isn’t a brand-new idea.

Right now, Americans can go to a post office for money orders and small matters like that. In its early history, the USPS offered options like opening a savings account, but the idea was abandoned in the 1960s. The idea was proposed 5 years ago, but was turned down by the USPS, saying their main function was delivering mail, not as a bank.

Currently, the USPS is deeply in the red. Over the last decade, they have lost nearly $69 billion and haven’t had a profitable year over that time. Postmaster General Megan Brennan says they are currently working on a plan reform how they operate to help make the USPS profitable again. Banking doesn’t seem to be one of those options as of now.

Written by adminMay 13, 2019

Politics

As we enter the prime 2020 election messaging time, it seems as if more people are finally talking about student loans. Elizabeth Warren, Bernie Sanders, and other Democratic candidates have their own views. President Trump doesn’t seem to care too much about the student loan debt burden.

One Republican seems to be breaking with party ranks to create a plan that can help change how student loans are paid. He introduced a new bill this week called The Leveraging Opportunities for Americans Now Act, or the Loan Act. The goal of this bill would be to entirely eliminate interest from student loans

“When I finished school, I had a little over $130,000, $140,000 in student loans,” Sen. Rubio said. “And it was really a burden for a long time.” He understands the burden millions of Americans are facing. Taking out a student loan can take decades to pay back. Interest rates are a big reason why, as you end up paying thousands of additional dollars.

Rubio wants to change that.

“If you take out a $10,000 loan, rather than charging interest that grows over time, there would be a flat fee of about 25% of the size of the loan, so you’d owe $12,500,” Rubio explained. “But that fee doesn’t grow. That’s what you owe. A $10,000 loan costs $12,500, and that’s what it’s going to cost the whole time. You don’t have to worry about if it takes you 20 years, that could grow to $25,000, you know? It could double!”

A New Way to Pay for Student Loans

Rather than having your student loans grow over time, you would have a flat fee added to it. Once you graduate school, you’d automatically be entered into a repayment plan that is based entirely on your income and ability to pay. Rather than letting student loans inhibit your life, you would instead focus 10% of your earnings towards paying back the loan.

Now that it’s spring, we have a whole new class of graduates ready to throw their caps into the air. Paying back student loans is most likely on the forefront of their minds. If it’s not, they’ll have their first bill sent to them very quickly. It’s sure to dampen any graduation celebrations they have this summer.

It’s estimated that as many as 44 million Americans owe over $1.53 trillion in student loans. That’s a number that continues to grow with each passing year. Perhaps Rubio’s plan is exactly what students need to survive without accruing interest making their problem larger over time. The typical borrower holds around $25,000.

“We want to make sure we can provide these loans, provide them and pay for the cost of servicing the loans, but at the same time, not try to compound the interest rate that hurts the borrowers,” he said.

Written by adminMay 13, 2019

Politics

The midnight deadline for the U.S. and China to create a new trade agreement has come and gone. While the trade talks continue, they still didn’t stop new increased tariffs from hitting. What was once a 10% tariff on $200 billion worth of Chinese exports magically turned into a 25% tax.

China isn’t taking this situation lightly. They’ve already vowed to retaliate if a new deal isn’t struck soon. As you can imagine, these tariffs are hurting the Chinese economy. President Trump feels as if China has a major advantage over the U.S. They have what he calls a “very big imbalance” where they make a lot of money off of us and we make very little in return.

President Trump made his comments in several tweets:

“Talks with China continue in a very congenial manner – there is absolutely no need to rush – as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars’ worth of goods & products. These massive payments go directly to the Treasury of the U.S. The process has begun to place additional Tariffs at 25% on the remaining 325 Billion Dollars. The U.S. only sells China approximately 100 Billion Dollars of goods & products, a very big imbalance.”

How this Impacts Us

While Trump says he’s in “no rush” to get a new trade deal done, it doesn’t just hurt the Chinese economy. The U.S. economy is being threatened as well. This is especially true if China keeps its promise to retaliate in the same manner. That means many products we buy every single day are about to become much more expensive.

“China deeply regrets that it will have to take necessary countermeasures,” China’s Commerce Ministry said in a statement. Still, we might not see the weight of this change for a few more weeks. It will take about three weeks for the products currently sitting on Chinese freighters to make it over this way. It won’t be an immediate change.

What kind of impact can we expect? The largest bulk of the tariffs are on electronics, machinery, and car parts. They also extend into everyday products, like toilet paper, orange juice, clothing, iPhones, computers, and more. The president remains optimistic that this will be a good thing for the country and our economy.

“Tariffs will make our Country MUCH STRONGER, not weaker. Just sit back and watch! In the meantime, China should not renegotiate deals with the U.S. at the last minute. This is not the Obama Administration, or the Administration of Sleepy Joe, who let China get away with ‘murder!'” he tweeted.

Written by adminMay 10, 2019

Politics

During the Education Writers Association conference, Education Secretary Betsy DeVos was asked a simple question about her future. The question was, if President Trump wins a second term, will she commit to serving another four years? That is a promise she wasn’t ready to make. It’s almost sounded as if she’s had enough.

DeVos is currently one of the longest-serving cabinet members to President Trump. While most others have disappointed the president in some capacity, she has remained in her spot. But it appears as if remaining loyal to this president comes with a lot of exhausting bagging. That includes keeping up with the constant negative press.

“I’m not sure my husband would be okay with that,” DeVos said during the Q&A portion of the Education Writers Association conference in Baltimore. “I never imagined I’d be a focus of your coverage. I don’t enjoy the publicity that comes with my position. I don’t love being up on stage or on any kind of platform. I’m an introvert.”

DeVos and Trump

One of the main reasons why DeVos has remained unscathed has to do with President Trump’s main focus. Education hasn’t been a large priority for him. That also means Trump hasn’t taken many steps to help push through DeVos’ “school of choice” platform. Her other ideas include offering tax credits for scholarships.

Neither Democrats nor Republicans have supported any of her ideas so far. That may be a large factor in her wanting to leave the position. If no one cares about education, why bothering continuing to try? Right now, both parties seem more interested in fighting over immigration and the economy. Even the border wall and infrastructure is getting more play than education.

DeVos is also frustrated with reporters and how they mischaracterize her ideas. During her speech at the association on Monday, she claimed her name was being used as “clickbait”. “As much as many in the media use my name as clickbait or try to make it all about me, it’s not,” she said. “Education is not about Betsy DeVos nor any other individual.”

Improving Teachers Pay

Another buzzworthy moment during DeVos’ speech included her shot at the current head of the American Federation of Teachers. She doesn’t think teachers are being paid nearly enough, forcing them to walk out of classrooms. If more teachers are leaving and protesting, then that hurts the students more than anything.

“We think, I think, teaching as a profession should be a highly honored and respected profession and I think it’s been de-professionalized in many ways,” she said. “And I think great teachers … perhaps should be making at least half as much as what Randi Weingarten does at half a million dollars a year.”

Whether DeVos leaves most likely depends on her relationship with President Trump. He may decide to coax her to stay by putting more emphasis on education during his potential second term. We’re still over a year away before the 2020 election, so anything can happen at this point.

Written by adminMay 9, 2019

Politics

For the first time in 40 years, the federal government is changing the rules for debt collectors. On Tuesday, the Trump administration proposed changes to the long-held rules. These rules haven’t left anyone particularly happy. Both the consumer groups and debt collectors are unhappy with these changes.

These changes allow debt collectors to send an unlimited amount of emails and texts to get the attention of borrowers who are past-due. At the same time, it also lowers the number of phone calls they can make each week. Now you can see why neither side is happy about these rule changes.

These new regulations update the former Fair Debt Collection Practices Act, which was signed back in 1977. It was created to help prevent citizens from being unduly harassed just because they owe on a debt. For example, one of the rules prevents debt collectors from calling during certain times of the day or continuously throughout the day.

This new law would allow debt collectors to only call a certain amount of times each week. That limits their ability to have direct contact with the debtor. But the new law also allows for an unlimited number of texts and emails. Most consumers would probably find this law a little better for them. Emails and texts are easier to ignore than phone calls.

Modernizing the Law for Debt Collectors

As digital technology grows, it’s creating a lot of legal gray area. Debt collectors actually asked the federal government to give a greater consent on what’s legal and what’s not. They may not appreciate the lower number of phone calls, but now have a better understanding of the law. Yet, this new attempt was meant to update a law from the 1970s.

Kathleen Kraninger, the director of the CFPB, said in a statement that the new rules aim to “modernize the legal regime for debt collection.”

“The Bureau is taking the next step in the rulemaking process to ensure we have clear rules of the road where consumers know their rights and debt collectors know their limitations,” Kraninger said. Debt collectors can now only call consumers no more than seven times per week. If they manage to reach the consumer during that time, they have to wait another seven days before calling again.

A New Age of Collection

As stated before, debt collectors wanted a better understanding of how they can contact consumers. These new rules will update the existing law and give consumers a bit of a break. If you have an outstanding debt, this must be a relief. It even allows consumers to ‘opt-out’ to prevent harassment.

The new rules don’t just impact calls, texts, and emails. It also took a look at social media. The new rules bar debt collectors from using any public platform to collect debts. That’s a good thing, because the last thing anyone wants are the collectors announcing your debt to the world.

“The Bureau believes that communications or attempts to communicate by social media platforms that are viewable by a person other than a person with whom a debt collector may communicate … risk exposing a consumer’s affairs to the public,” the proposal states, adding that such conduct could “have the natural consequence of harassing, oppressing, or abusing the consumer.”

Mixed Feelings

These new rules are a bit of a compromise for both sides of the conversation. The response, as stated, has been a bit mixed. They like the clarification of rules, but not necessarily the lack of available phone calls they can make. Phone calls have dominated the way debt collectors have done business for decades. Now they’re open to extend it to emails and texts.

“We’re very happy to see that email, text messages and voicemail are addressed, with clear guidance about how to use them lawfully. That’s a major step forward,” Jan Stieger of the Receivables Management Association International, a trade association which represents debt collectors, told The New York Times.

Leah Dempsey of industry lobbying group ACA International took issue, however, with the cap on the number of calls debt collectors can make per week, calling the figure “arbitrary.” “The cap would unnecessarily impede communications with consumers,” Dempsey said.

Written by adminApril 22, 2019

Politics , Student Loan Consolidation

As we get nearer to the 2020 elections, we’re starting to see the candidates roll out their promises. Earlier today we revealed a plan by Andrew Yang to give $1,000 to each American every month. Now Elizabeth Warren is trying to tap into the freebee game. She’s offering complete student debt cancellation for millions of Americans.

That’s right. If you have student loan debt and your income is under $100,000, her proposal will wipe out your debt. Well, there is a limit of $50,000, but the average amount of debt owed is $37,000. Student debt cancellation is only one of Warren’s big ideas. She also hopes to add a new corporate tax, give universal child-care coverage, and more.

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Under Warren’s student debt cancellation plan, this money wouldn’t be taxed. Currently, you still have to pay debt, even if you have your debt forgiven. She says she understands the burdens and wants to help others.

“The enormous student debt burden weighing down our economy isn’t the result of laziness or irresponsibility,” Warren, whose first bill as a Senator sought to provide relief to student borrowers, writes. “It’s the result of a government that has consistently put the interests of the wealthy and well-connected over the interests of working families,” said Warren.

Student Debt Cancellation Plan Details

According to Brandeis University, Warren’s plan would make 75% of borrower’s debt-free. 95% would receive some type of help. The cost of student debt cancellation plan is estimated around $1.25 trillion. She figures her tax on ultra-millionaires will be enough to pay for it. Not only that, but Warren hopes to help the lower class.

She wants to give a $100 billion boost to Pell Grants for low-income people and students of color. This would also include a ban on schools receiving massive federal dollars. Many suspect that the schools receiving federal money allows them to dramatically increase tuition. That increase hurts low-income people and puts them in major debt.

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“We got into this crisis because state governments and the federal government decided that instead of treating higher education like our public school system — free and accessible to all Americans — they’d rather cut taxes for billionaires and giant corporations and offload the cost of higher education onto students and their families,” Warren writes. “The student debt crisis is the direct result of this failed experiment.”

Written by adminApril 22, 2019

Politics

The Democratic field is currently packed with interesting (and not so interesting) candidates. With a mere 19 months until the 2020 elections, many Dems are coming out of the woodwork. They feel that whoever makes the nomination should have an easy route against President Trump. So far, you might think that the word of the day is socialism. Another might just be universal basic income.

Socialism seems to be on the rise among young voters. So, in a bid to attract the future voters of America, many candidates are pulling out the stops. At the very least, they want to appear so in order to attract young votes. But one Democratic candidate wants you to know he’s definitely a capitalist.

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As a capitalist, Andrew Yang has a good idea he wants to share with Americans. He’s proposing a universal basic income payment to every American. He calls his plan a “Freedom Dividend”. This Freedom Dividend promises to give every American adult an additional $1,000 per month to help them get by.

Andrew Yang and Universal Basic Income

When you think of a universal basic income plan, you might thing Yang is a socialist. He is not. In fact, he claims to be very much on the side of capitalism. He might just be moderate enough to do well in the primaries and even pull some Republican support. He even founded a non-profit that helps train young entrepreneurs.

So, many might be asking how Yang proposes to pay for his Freedom Dividend. The answer sounds a little like socialism, but he says it’s not. He said companies like Amazon would fund his program. This company and many others get away with paying zero income tax. Therefore, they might feel compelled (probably by force) to supply the money.

“We all can see that Amazon paid zero in federal taxes last year despite record revenues. And so, ff we know that the big winners in the new technology age are going to be paying zero taxes then of course were not going to have enough money to go around,” said Yang.

“But if we follow other countries examples and create a mechanism where we all benefit from these innovations, then we can pay for a $1,000 dividend for every American adult. Our economy is up to a record $20 trillion. Just the problem is those benefits are not being felt by the average American family,” he said.

The Plan

Still, it doesn’t matter what your income is. Every American adult over the age of 18 would receive a universal basic income payment of $1,000. Just imagine what that would do for struggling Americans. Who couldn’t love that idea? One’s work or disability status wouldn’t matter. It would apply to EVERY adult.

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“Under my plan, the ‘Freedom Dividend,’ if you put $1,000 a month in the hands of every American consumer, a lot of that money would get circulated through economy over and over again and it would create hundreds of thousands of new jobs in main street economies around the country,” Yang said.

What do you think? Will this be something you support?

Written by adminApril 19, 2019

Politics

Yes, it’s the day after the Mueller report was finally released to the public. While about a third of it was redacted, the results will probably feed your bias. If you thought President Trump was guilty before, you probably still feel that way. Of course, if you thought he was innocent before, you feel as if he has been exonerated.

Still, this website is called Financial Helpers. We’re not here to tell you how to interpret the report (nor will we take sides). Instead, let’s talk about how much the Mueller report cost taxpayers. It’s been a major concern on whether this report was a waste of taxpayer dollars. Whether it was a waste of money, again, depends on your bias.

“It’s a shame our country had to go through this,” Trump said back in March. He’s long since called the Mueller report a ‘witch hunt’, a ‘hoax’, and an ‘illegal takedown that failed.’ Again, whether those are true are for you to discern. But if it was indeed a hoax, how much did it cost? Inquiring financial minds want to know!

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The Cost of the Mueller Report

Trump tweeted that Mueller and his team of “angry Democrats” wasted $40 million. That figure appears to be a vast exaggeration according to Politifact. Back in September of 2018, Mueller filed an expense report that showed the investigation had cost around $25 million. If that rate of spending remained true until this day, then we can assume that he spent around $32 million.

This is much less money than previous investigations have cost. $104 million was spent collectively between the Reagan Iran-Contra and Clinton investigations. Therefore, one can conclude that this investigation, while expensive to the common man, wasn’t a money pit. There are other factors to consider.

Charges and Fines

One of those factors are the fines levied throughout the Mueller report investigation. Is it possible that this investigation, when all is said and done, will result in a net profit? That could very well happen. When you take a good look at all the fines and seizures, the investigation made more money than it lost. Charges and Fines

Overall, 37 people and entities found themselves under the weight of the Mueller report. These are names you’ve probably heard in the news over the past several years. Guys like Paul Manafort, Michael Flynn, and even Trump’s lawyer, Michael Cohen. They were all fined substantial amounts of money.

While it’s unknown exactly how much money the Mueller report brought in, it’s easy to count the reported settlements. The total sum of the settlements appears to be around $28.6 million. That certainly makes up the bulk of what the report cost overall. There are still other factors to consider.

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Paul Manafort was perhaps hit the hardest in all of this. Not only did he get prison time, but he had to forfeit a lot of New York real estate. The estimated worth of his holdings could total $46 million alone when resold.

So, while the contents of the Mueller report are to be interpreted by the people, the cost certainly isn’t. You can’t ignore the numbers. Whether the report was worth our time and energy are debatable, but it wasn’t a waste of money.

Written by adminApril 8, 2019

Politics , Uncategorized

The White House has recently issued a proposal that could deny food stamps to the nation’s poorest people. SNAP, the Supplemental Nutrition Assistance Program has some guidelines to its application. One of those guidelines are employment requirements that must be met.

Due to the Great Recession, we saw many states over the past decade wave work requirements for SNAP. It made it a lot easier for struggling people to get the food benefits they needed to survive. Trump’s proposal would, in effect, prevent states from waiving that requirement.

That could push as many as 750,000 off the SNAP program. Karen Cunnyngham, a researcher into this proposal, told the House subcommittee of the dangers of this proposal. She said those hit the hardest would be people who work, but barely make $557 per month.

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Food Stamps Requirement

According to the law, if you’re non-disabled and are of a working age, you must have a job or be training for a job to receive food stamps. If you’re currently not working but are able to work, you can only receive benefits for three months out of 36. In many instances, states have waived these requirements.

This is all part of Trump’s initiative to add more work requirements to benefit programs. He believes these sorts of requirements will help weed out the people who can work but refuse to do so. At the same time, it also creates more barriers for people who have a difficult time finding gainful employment.

“Those subject to the time limit have profound barriers to employment,” said Lisa Hamler-Fugitt, executive director of the Ohio Association of Foodbanks. People who have physical or mental limitations but not classified disabled, don’t have reliable transportation, or failed to attain their GED. Either way, there are plenty of people out there who would struggle to meet food stamps requirements.

Still, the republicans believe rules like this exist for a reason. Forcing able-bodied people to work will help move them out of poverty.

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“Work has dignity. Work is opportunity. It’s not a dirty word,” said Rep. Dusty Johnson of South Dakota, the nutrition subcommittee ranking member. “Able-bodied adults cannot be kept on the sidelines while we witness historically low unemployment and a record-high seven million open jobs.”

Written by adminFebruary 13, 2019

Politics

When we say $22 TRILLION dollars, it might not make people blink too much. It’s just a number, right? Does the national deficit actually impact anyone’s lives? We will still go about living as we always have, working and spending. The national debt might seem like more of a problem for politicians. They only seem to care about seeing who can outspend each other, regardless of party.

But the reality of the national debt goes deeper and people should care more about what it signifies. It means that our politicians, the people we hire to take care of us, have failed us. They’ve outspent our budget to the tune of $22 trillion. We rely on these people to take care of our needs and ensure the future is bright for our children.

During President Trump’s State of the Union address last week, there was not a single mention of the national debt. Neither did the Democrats during their rebuttal. They seem more interested in playing political games and one-upping each other. In fact, one politician was asked about the national debt after the speech. His reply was: “No one here cares!”

But, as Americans, we should all care about the national debt. That is OUR money they’re playing around with. They’re wasting millions…billions even, on frivolous things. The impact of this problem is going to be felt maybe not today but in the near future. It’s going to tank our economy if we don’t figure out a solution.

The Impact of the National Debt

There is a major impact to the massive national debt. And the reason why most politicians don’t care is most of them will be retired soon. They’ll be gone before the worst of the problem hits. But that doesn’t mean there isn’t already a problem happening. For one, where there’s debt, there’s interest that needs to be paid.

$500 billion of our tax dollars is automatically rendered dead money. Before we pay for anything like roads or infrastructure or military, that first chunk goes away. Each year we pay that $500 billion in interest, which is a number that continues to grow. Paying that much in straight up interest is going to take more usable money out of the budget as the deficit grows.

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Still, we’re not done dooming and glooming this situation. In just a few short years, we set to hit the $30 trillion mark. That means the interest we pay towards the national debt will grow to $1 trillion. Down the drain, every single year. That’s the approximate asking price to start repairing the entire country’s infrastructure.

More Trouble Ahead

Currently, the United States adds $3 billion to the national debt every day. Can you imagine overspending that much? Half of that goes directly towards the interest on the debt. And it seems like the interests of the Congress and Senate are to continue spending even more money. This is especially true for the newly elected socialist Democrats.

Pushing for programs like Medicare-for-All and free college tuition, it seems like a good idea. But Medicare-for-all by itself will cost over $40 trillion over the next decade. That’s simply money we don’t have, even if we dramatically increase taxes. Because our politicians love to spend and make promises, the national debt has no chance of ever going down.

Student Debt Cancellation Plan Details

Andrew Yang and Universal Basic Income﻿

The Plan

The Cost of the Mueller Report

Charges and Fines

Food Stamps Requirement

The Impact of the National Debt

More Trouble Ahead

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