Ensuring Everyone Receives a Stimulus Check via Postal Bank Accounts
During the economic crisis of 2020 — caused by the surging COVID-19 pandemic — the US Congress passed a stimulus package that covered small business payrolls under the Paycheck Protection Program (PPP) and direct payments to individuals or married couples that earn adjusted gross income below a threshold. Unfortunately, many individuals did not receive their stimulus checks because they did not file a tax return or they owed taxes in 2019. In addition, many small businesses did not receive a PPP loan because they did not have a traditional bank relationship. As the dual crises continue into 2021, the US Government still does not have the means to make prompt direct payments to everyone in the US during times of crisis.
It is a naive assumption that everyone can have a traditional bank account in the US, so how can this issue be addressed quickly? While there are a myriad of reasons why some people and many small businesses do not have a traditional banking relationship, there is a banking precedent that can address this issue. From 1911 to 1967[1], the US Postal Service (USPS), under the auspices of the Postal Savings System, provided public bank accounts through post offices. The original intent was to make banking more accessible to immigrants that were accustomed to saving at post offices in the native countries.
