by Dick Mac
Reaganomcis promises that the privatization of government services (that is, services funded by taxpayers) will lead to more efficiency and reduced costs to all involved. As evinced by reality, privatization has been a boom for banks and a boondoggle for taxpayers.
Here's the latest farce: State governments pay Bank of America to distribute unemployment benefits. These are benefits we all pay for while we work and pay taxes. These benefits are not free-loading, this is money saved in the taxpayers' coffers in case a taxpayer should become suddenly unemployed.
The sums paid to individuals are small and prevent starvation; but do not prevent foreclosure and loss of home.
With this new-fangled distribution method, there need to be new approaches to using the money. Wall Street has come-up with the perfect, most profitable plan possible; that costs the taxpayers and consumers more than previous systems.
Recipients are required to use a BoA debit card to access their money (money generated with unemployment insurance they paid for). Bank of America then charges recipients for every transaction, further reducing the recipient's benefits. Most importantly, thought, this increases the profits of a bank that caused the huge unemployment rates in the first place.
Every unemployed person receiving unemployment insurance payments must pay Bank of America, a private corporation, fees to use the money they receive. I know that those at the bottom are now expected to fund the lifestyles of those at the top; but, can we give the unemployed a break? BoA is making plenty of money without squeezing the poorest among us.
Lest you be confused: this is exactly what was promised with Reaganomics. Sadly, many Americans believed the lie that it would be good for all Americans. It is good for only a small percentage of Americans.
Bank Of America Makes Millions Charging Fees To Withdraw Unemployment Benefits