title: How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy
author:  Mehrsa Baradaran 
description: An important voice[Baradarans] excellent new book, <i>How the Other Half Banks: Exclusion, Exploitation and the Threat to Democracy</i> describes how, for decades, big banks have shed their social contract with the American public and transformed themselves into modern monstrosities which serve corporations and the wealthy and exploit or avoid the less affluent members of our society. Setting the stage with this historical context, Baradaran makes a compelling case for a postal banking system which would greatly benefit millions of struggling unbanked Americans.<b><i></i></b><b>Ralph Nader</b><b>, </b><b><i>Huffington Post</i></b><br /><br />The title of [Baradarans] lean, angry book echoes the photojournalism of Jacob Riis, whose 1890 work on the slums of New York, <i>How the Other Half Lives</i>, spurred a housing reform movement In a society built on credit as a means to wealth, low-income families deserve a much better deal, Baradaran argues. People do not opt for expensive products because they do not know any better, or are somehow reckless or irresponsible. They do so because they have no choice. And that is a national embarrassment.<b><i></i></b><b>Ben McLannahan</b><b>, </b><b><i>Financial Times</i></b><br /><br />Baradaran argues persuasively that the banking industry, fattened on public subsidies (including too-big-to-fail bailouts), owes low-income families a better deal <i>How the Other Half Banks</i> is well researched and clearly written The bankers who fully understand the system are heavily invested in it. Books like this are written for the rest of us.<b><i></i></b><b>Nancy Folbre</b><b>, </b><b><i>New York Times Book Review</i></b><br /><br /><i>How the Other Half Banks</i> is a fascinating blend of history, policy, government, regulation, influence buying and some international comparisonsIndispensable for any future studies of American banking and regulation.<b><i></i></b><b>Tom Groenfeldt</b><b>, </b><b><i>Forbes</i></b><br /><br />Mehrsa Baradarans terrific book, <i>How the Other Half Banks</i>, argues that we could and should ask banks to serve the poor and working class once again. In particular, post office banks (with storefronts and websites both) could provide those missing banking services: a place to park cash, earn interest and take out small amount loans The idea is not hers originally, but she seizes and expands on the idea brilliantly and at great length. In particular, she advances the case for postal banking by reviewing the countrys earlier experience with postal banks, and by linking that experience to the modern problem of missing services for the poor and working class One can appreciate why the policy world has come to Baradaran for her expertise, and this book will constitute a central contribution to the debate I will recommend this book to all who are interested in structural racism Baradaran demonstrates how the the post-deregulation restructuring of banking has disproportionately impacted communities of color, and how postal banking and other public options might bring them back into the fold once more. Baradarans revival of postal banking, and her description of the disappearance of services in the wake of deregulation, is fresh and engaging, and I highly recommend [the] book for all who are interested in the structure of inequality.<b><i></i></b><b>Daria Roithmayr</b><b>, </b><b><i>JOTWELL</i></b><br /><br />Steadily shedding low-profit clients, American banks flourished during three decades of deregulation, but, when the crunch came last decade, the U.S. governmentspouting we-are-all-in-this-together rhetoricrushed to their rescue. In good times, banks are free-market players. In bad times, they have all the comforts of state agents. The authors emphasis is not on curtailing megabanks privilegesa reader could get the impression she thinks that case too obvious for lengthy expositionbut on providing secure, low-cost credit for those who need it most. Her back-to-the-future solution is postal banking. Although the idea sounds terribly old-fashionedit hasnt been seen in the U.S. since the 1960smore than 50 nations, including Japan and Germany, maintain a vibrant postal-bank system, a pillar of their strong savings cultures.<b><i></i></b><b>Brian Bethune</b><b>, </b><b><i>Macleans</i></b><br /><br />Baradaran charges that nearly half of the American population has been deprived of access to financial services at a fair price thanks to financial deregulationA comprehensive addition to the ongoing discussions of both inequality and the financial system.<b><i></i></b><b><i>Kirkus Reviews</i></b><br /><br />A fascinating in-depth view of why and how so many Americans struggle to find affordable banking services. Modern finance provides great opportunity but also many risks, through hidden fees or even outright deception. The crisis of 2008 was not an aberrationand we have not fixed the deep-seated underlying problems. A must read for anyone who aspires to build financial security for themselves, for their family, and for the nation.<b><i></i></b><b>Simon Johnson, coauthor of <i>White House Burning</i> and <i>13 Bankers</i></b><br /><br />Do banks have a public responsibility to serve the poor? This captivating book argues that they do. A fresh and provocative perspective on the very old problem of the poor and debt.<b><i></i></b><b>Patricia A. McCoy, coauthor of <i>The Subprime Virus</i></b><br /><br />Thoughtful and exhaustive.<b><i></i></b><b>Helaine Olen</b><b>, </b><b><i>Democracy</i></b>
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  THE
  e-D
  UNIVERSE
  January 2021
  PUNJAB’S
  FARM 
  CRISIS
  Mission Bengal
  The BJP looks all set to mount a campaign for its most 
  ambitious target yet.
  
  As usual a very logical 
  counter by the redoubt-
  able R Jagannathan to the 
  fears raised by the Cas-
  sandras, as he describes 
  the duo (Contrarians In 
  Frenzy, December 2020). 
  The duo seems to be 
  nursing some grievance 
  over being eased out. 
  Also, knowledge is not 
  the monopoly of a few 
  economists/central 
  bankers. The solution as 
  Jagannathan writes is in 
  vastly improved supervi-
  sion by the central bank. 
  There needs to be ac-
  countability at the central 
  bank too for poor and 
  negligent supervision. 
  Remember Yes Bank and 
  recently the KVB fiasco, 
  not to talk of PNB. It is 
  not clear whether any 
  official in the central bank 
  has been hauled up.
  — Krishnamurthy K A
  L E T T E R S 
  Why Blame Rahul?
  I am tempted to say “let it be” and let them drown in their own 
  incompetence and foolishness (Why Blame Him?, December 2020). But 
  our