David Dayen | BIG GREEN

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!

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The COVID-19 crisis is a major disaster in several respects. First, it’s a health disaster of the first order, one that is going to cost many thousands of people their lives over the coming weeks and months. That would be more than bad enough on its own. But it’s also an economic catastrophe for individuals, families, businesses, and organizations all over the country. This aspect, too, will be the undoing of many of its victims. It’s hard to imagine how people on the edge are going to get through these next few months. It’s just as hard to imagine that small businesses won’t fold by the million as the economic shutdown, by necessity, continues. This crisis has the potential, as many have said, to reshape our economy and our society in fundamental ways, and not clearly for the better.

Take the response (or “CARES”) package passed by Congress and signed into law by the moron-in-chief. David Dayen has laid this out in detail in the American Prospect. Simply put, the funds being directed to poor and working people are going to be way too slow in coming. If you aren’t set up to receive tax refunds via EFT, you could be waiting a long time for that check to arrive. People in the informal economy (including many working musicians, as it happens) may not get any help at all. Small businesses can apply to get loans through the SBA that would become grants if they retain their workforce, but the SBA is a slow-moving entity and not resourced to handle the national crush of requests that will be coming its way. On the other hand, major corporations will benefit from a $500 billion bailout, $425 billion of which will be vested in the Federal Reserve to provide base capital for up to ten times that amount in low-interest loans to big business, financial institutions, etc. That money does not require workforce retention – companies can use it for downsizing, mergers and acquisitions – everything short of stock buybacks, which are barred for the term of the loan.

That combination of factors will greatly advantage larger players over smaller ones in this economy. That auto shop on the corner? He’s history. Bring your car to the dealership. That’s what this could look like. Meanwhile, the president is having the time of his life. He’s bragged about the ratings his 5pm daily Coronavirus update is drawing, and he’s treating these press events like it’s a reality show, bringing on the My Pillow nutcase, picking fights with journalists, spewing garbage like a leaky barge. Two weeks ago, he was talking about ending the social distancing measures, but now he’s seen the advantage of just riding with it. And to some extent, the American people, in their infinite wisdom, are rewarding him with marginally higher poll numbers, despite the fact that Trump’s inaction over the last three months has blown this pandemic threat into a full-fledged national emergency that, at best, will kill well more than 100,000 Americans, and likely multiples of that number.

Trump thinks 100k deaths would be evidence of his competence. It’s anything but. He needs accountability, and we need to keep this country from slipping into the oligarch’s paradise he’s always dreamed of.

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